February 2, 2024
In today's digital age, the landscape of real estate listings is rapidly evolving. Gone are the days of static images and vague descriptions. Realtors, property managers and owners are now leveraging cutting-edge technology to enhance the listing experience for both prospective buyers and tenants. One such innovation that's made waves in the real estate industry is the utilization of virtual tours and 360 degree cameras in online listings.
Are Virtual Tours Worth It?
- Demand for Virtual Tours in Real Estate Listings
- The Benefits of Virtual Tours
- The Cost of Virtual Tours
- Conclusion
Is there a demand for virtual tours?
- In 2023, 78% of sellers said they are more likely to choose an agent that uses virtual tours.
- 74% of buyers prefer listings with virtual tours and interactive floor plans.
- Virtual tours rank 3rd in most important features of a listing.
The use of virtual tours exploded during COVID. In fact, Zillow listings promoting an open house in early 2021 had decreased by 41% compared to the period before the pandemic, however those showcasing a virtual tour had risen by approximately 200%! Since then, although the increase has slowed, it definitely hasn't gone away. Although slight, we've seen continuous year on year increases in buyers requesting virtual tours, preferring virtual tours to in person showings as well as comfortability with making an offer, having only had a virtual tour. One thing is for sure, they're not going away.
What are the benefits of virtual tours?
- Increases sales.
- Saves time and money.
- Reaches a larger audience.
- Increases professionalism and premium appearance of listing.
- Tours available 24/7.
According to Matterport, clients using virtual tours have seen a 14% increase in bookings and sales. It's important to remember not all of their clients are in the real estate industry and this stat is used largely for marketing purposes. However, one benefit that can't be ignored is the time savings. Virtual tours remove in person showings that end up being a dud because the client didn't care for the floor plan or there was a deal breaker that the 360 degree cameras are able to show. This weeds out unproductive showings and saves time on travel costs. In fact, Matterport claims that virtual tours will halve the costs of transportation required for in person viewings. Buyers and renters that are not local and unable to do an in person showing are also much more likely to favor a listing with a virtual tour rather than one without.
How much do virtual tours cost?
Virtual tours can start at around $250, but are largely based on the size of the property. The good thing to note is that more and more options are becoming available that can serve different types of budgets. Even phone camera apps are becoming more competitive in the market.
So, are virtual tours worth it?
Virtual tours have transformed real estate listings, offering professionals who utilize the technology a competitive edge in today's market. By leveraging immersive experiences, agents and managers can attract more clients, expedite their processes, and ultimately maximize their time. Embracing this innovative technology, and keeping up with it as it continues to develop, can position them as industry leaders committed to providing exceptional experiences.
References:
https://www.zillow.com/research/3d-tours-virtual-tools-popular-29650/
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4517728
https://www.zillow.com/research/prospective-buyers-consumer-housing-trends-2023-33077/
Disclaimer: This blog post is for general informational purposes only and does not constitute legal, financial, tax, real estate, or investment advice. Because laws, regulations, and market conditions change and each situation is unique, you should consult a qualified professional before making any decisions based on this content. Bluebird Property Management makes no guarantee as to the accuracy, completeness, or applicability of the information provided.
