Virtual reality (VR) could soon replace images as the common visualization tool for online real estate listings. How will this technology change the real estate market and affect buyers and sellers?
Virtual Reality Home Tours: A Growing Trend in Real Estate
With virtual reality technology, you can virtually visit every room of a rental property and have face-to-face conversations with the agent from the comfort of your living room couch. Its global market value in the real estate industry may have increased from $800 million in 2020 to $2.6 billion in 2025.
Accessibility is one of the main benefits of virtual home tours. VR allows you to walk through a property regardless of whether it is under construction or occupied by the owners. Even if you and the listing agent are on different sides of the nation, you can arrange an aided walkthrough to obtain insider knowledge about the property.
To fully appreciate the potential of a fixer-upper, consider using virtual reality (VR) technology to overlay remodeling or design changes onto the real model. Because of these characteristics, this kind of tour is among the most intimate and immersive, which explains why it is becoming so popular quickly.
The demand for real estate is slowing down due to rising interest rates. For example, the average interest rate on 30-year mortgages increased from 3.02% in 2020 to 5.8%-6.1% in 2024. This is the application of VR. It offers a special chance to help buyers and sellers by speeding up the process of getting properties off the market and improving the efficiency of tours.
The Technological Developments Enabling Everything
A virtual home tour relies heavily on VR technology, yet it’s also made possible by a few other breakthroughs. The first is 360-degree camera scanning of the property for high-resolution 3D imaging. After that, the seller uses specialist software to stitch the photos together to create an accurate virtual replica for tours.
The Internet of Things is the second innovation that enables VR home tours. Vendors can add dynamic elements to the virtual world by feeding real-time data through networked sensors. Rather than burdening end users with computation and bandwidth, they can use edge devices connected to the internet.
Technological developments in motion sensors and controllers have enabled interaction. Rather than following a prerecorded guided tour, you can explore the property at your own pace. Animations such as those that lower blinds or open cabinets can also be initiated with a simple hand motion.
Considering that consumer applications make up 53% of the VR market, the number of technological advancements aimed at real estate should be no surprise. The cost of conducting research, developing software, designing, and hosting platforms for these applications is high.
VR-Powered Real Estate Showings and Their Consequences
Virtual Reality technology increases the accessibility of home tours, increasing the number of potential buyers. Experts claim that compared to the conventional approach, they reach more potential customers. They are more engaging in addition to drawing in more visitors.
Typically, a property’s listing only allows you to view the layout. With any luck, you will also obtain many wonderful photos. They still do not capture the essence of what it is like to be in the house, though. Because virtual reality immerses you in an authentic, lifelike replica where you have agency and control, it increases user engagement.
Although the former may be more evident, sellers benefit more from virtual home tours than buyers. The selling prices of properties that use VR real estate showings are 7.25% higher than the benchmark.
Heightened buyer engagement and broadened accessibility lead to a competitive advantage. The process moves more quickly since virtual tours don’t require in-person assistance or scheduling.
Some experts claim properties using VR real estate showings spend 20%-30% fewer days on the market. As a result, agents can take on more listings at once.
Possible Difficulties with VR for Sellers and Buyers
Virtual Reality (VR) home tours can help buyers and sellers, but they pose some challenges. One of the biggest of these is the inaccessibility of VR headsets. Immersion experiences require mid- or high-end equipment, but virtual viewings can still be done without one. This problem is more likely to affect properties in low-income areas.
Agent accessibility is another issue that buyers and sellers must deal with. Although an assistant is not necessary for virtual home tours, many serious buyers request one to ask questions. However, scheduling can become more difficult due to the increased attention VR listings receive.
The accuracy of virtual property replicas is the final potential source of difficulty. Even though the average cost of creation is less than $300, some sellers might not be able to afford to have theirs redone for each update or renovation. Customers may feel misled if the tour does not resemble its real-life counterpart.
The Prospects for VR Home Tours in the Real Estate Industry
Sellers can see where buyers are coming from and which properties they are most interested in by using VR to track eye movement, location, data, and interaction information. They can then optimize their pricing, risk assessment, marketing, and demand forecasting strategies.
Buyers can simultaneously virtually inspect properties from any location, in any condition. The accessibility and engagement benefits of VR technology will probably change the nature of a typical real estate transaction.
VR technology has the potential to revolutionize the real estate industry forever, making it the preferred option for buyers and sellers. It may become commonplace to include it alongside layout and property photos as its popularity grows and becomes something that people anticipate seeing.