Earlier in October, Inman published an article titled, “Sotheby’s International Realty beats Zillow and realtor.com to 3-D,” suggesting that Sotheby’s had somehow one-upped the top two property portals in the U.S. with an exciting new technology. Congratulations, Sotheby’s. You won a game that no one else was playing. Everyone talks about the product, but there are three fundamental business issues with 3-D and virtual reality (VR) in real estate that no one is talking about. 1. Some agents don’t want it Real estate agents don’t want to disintermediate themselves, and that’s exactly what VR does. Agents want prospective buyers to contact them, ask questions about a property and come to an open home. That’s how they get their leads! Agents are a central part of the real estate transaction process. Why would they encourage buyers to use a technology that cuts them out of the process? High quality content like VR tours empowers consumers by g...
- Virtual reality faces structural impediments to widespread adoption.
- It's expensive and adds too little value to mainstream real estate transactions.
- It's not proven to sell more houses.
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