While going direct to market can certainly be appealing to save costs, but inexperienced vendors need to exercise caution. Listing your property at the correct price and managing communications or negotiations with prospective buyers directly can be daunting tasks; so sellers should ensure they are well informed and prepared to seek support when required.
Virtual reality versus reality
The real estate industry is a top priority for the virtual reality market, with such capabilities having the potential to disrupt the way real estate is sold. With free-roam virtual reality as well as standard sit-in-chair video now on offer, walk through virtual tours of properties have become available and are fast becoming the norm.
Virtual reality tours are a fresh advertising channel. Apart from increasing interest and expanding overall market reach, it also means that if a potential buyer does decide to physically visit a location, they are more likely to have a genuine interest in the property; ultimately saving the client, real estate agent, current owner or developer time and money.
The ability to view and explore a property without actually visiting it saves time and costs, however virtual reality tours have their limitations. While it can allude to it, a virtual reality tour won’t convey the environment around the property or the sights, smells and feeling of the property that don’t make it onto the screen. There’s no doubt it’s a great tool to generate genuine interest, but most buyers, especially owner occupiers, will still want to physically inspect a property before they fully commit to their purchase.
Valuation apps
Whether it’s a buyer or a seller, one key question that is often asked is “how much is this property worth?” In recent times, there has been a surge in banks, lenders and real estate agents offering free apps which provide indicative values on specific properties.
The apps favour buyers as they can provide an indicator of pricing when assessing their options. However they also provide sellers with an idea of value and therefore assist with the decision to go to market and price setting. Most of the apps are an instantaneous tool that is available at any time of day with minimal to no costs in most cases.
While valuation apps can improve transparency for buyers, even reduce the risk of the practice of underquoting, they also have their limitations. The valuation range is only as good as the data available to the app developer and there are always questions raised around how relevant the comparable sales might be in assessing values.
What can Vendors gain from the use of tech?
They say knowledge is power but in these times more accurately, data is power. While the use of ‘go to market’ technology appears to make life easier for the buyers, it also provides suppliers with the ability to capture trends and information on consumer preferences that can be used when making investment decisions. The data that can be gained from online vehicles such as realestate.com can provide key information on buyer preferences and highlight those areas obtaining the highest engagement. Developers can use this information to understand the common characteristics and surrounding infrastructure driving that engagement and work this into the planning for future projects.
What to consider
