We're now over six months into the COVID-19 pandemic, and there are finally some signs that the worst might be behind us (barring a second wave, of course). Here in Nova Scotia, the government is rapidly easing restrictions, even going so far as to allow for up to 50 people at a gathering. It's a sign that is encouraging for the future!

While we don't know all the long-term effects of the pandemic on people's behaviour, some trends are emerging in the real estate industry that should be of particular interest to new construction developers. One of those trends is that people are enjoying viewing virtual tours of properties. Here are three reasons why that trend will likely continue even after COVID-19 becomes a distant memory.

1. Buyers Are Responding to Virtual Tours

There's emerging evidence coming out of the United States that virtual tours work for existing home sales. A University of Iowa study found that listings with virtual tours had sales prices that were 2-3% higher than those without them. Perhaps more critically, they showed that virtual tours were a substantial reason for that increase, so it wasn't by pure chance.

For pre-construction homes, virtual tours likely have an even more significant impact as they bring a conceptual home to life. Instead of talking hypotheticals or waiting for a showhome, buyers can visualize their home, complete with all customizations, using virtual tour technology. If buyers have been receptive to virtual tours during the COVID-19 process (and it seems like they have been), there's very little reason to believe that won't continue moving forward.

2. Virtual Tours Reduce Friction and Bail Rates

One aspect of the pandemic is that people are discovering, with technology, how little driving is essential. For developers, getting someone out to the sales office was, and still is, a friction point in the sales process. Getting someone's interest piqued is one thing, but getting them to get in a car and come out to check out the home is something completely different.

Now, with virtual tours, people can look at these pre-construction properties without leaving their homes. Even after the pandemic subsides, people will probably go out less and use their cars less, which means that any aspect of the sales process that requires transportation will likely lead to dropped conversions.

If people can work remotely online, they'll expect to view their prospective home online!

3. Virtual Tours Are Fantastic Marketing Material

Before, people would post some photographs and a little blurb about the neighbourhood, materials, etc. that comprise the project. However, what real estate agents are discovering during COVID is that if a picture is worth 1,000 words, a virtual tour is worth 10,000!

People don't read. Listings with extended text and fewer images fare poorly against those that have more pictures and less text. On the other hand, listings with virtual tours do much better than those with lots of images.

Buying a property is a very visual experience. People want to envision themselves in the home to get a sense of whether it works for them. So far, it seems that virtual tours give buyers enough visual cues that most of them can visualize themselves in the property - at least enough to put an offer down on it!

These Tours for Pre-Constructions Are Here To Stay

Given all the information that we're learning during the COVID-19 pandemic, it's hard to envision a world where virtual tours don't become the norm. Buyers love them (enough to raise the sales price by thousands of dollars for existing homes). Virtual tours provide a way to avoid getting in the car and visiting a showhome, which is essential in a world with more remote work and less daily commuting. Finally, they're great marketing! Letting prospective buyers know that you have virtual tours for the listing will make buyers significantly more interested in it.

If you would like a virtual tour for your pre-construction properties, please contact us. We'd love to help you out by creating the perfect virtual tour for your prospective buyers!