Are Virtual Tours Dead? Here's what our study on over 300,000 homes across Georgia and Florida found.
This is a virtual tour of a unit managed by Rent My Beach Place
Captured 7/19/2024
In recent months, a handful of articles have gained traction, claiming that virtual tours are no longer necessary and might even decrease the chances of getting your home sold. When we first came across these assertions, we were taken aback. The entire point of a virtual tour in the real estate space is to connect with potential buyers faster—so why would some believe otherwise? Sure, virtual tours peaked during covid but surely they weren't having a detrimental effect on a home selling. As a company that offers virtual tours, we understand the critical role they play in accelerating the process of getting homes under contract. But we also know that in the world of real estate, numbers matter. ROI is crucial, especially when people have their entire house on the line.
To set the record straight, we decided to conduct our own study. We analyzed data from over 300,000 homes listed on Zillow, aiming to determine the true impact of virtual tours on getting homes under contract.
Our Methodology: A Comprehensive and Unbiased Approach
To ensure our study was as accurate and unbiased as possible, we carefully curated our dataset. We filtered by home type, including "Houses, Townhomes, Multi-family, Condos/Co-ops, and Apartments." We excluded "Lots/Lands" and "Manufactured Homes" from our analysis to maintain consistency in our comparison. Lots and lands, by definition, don’t include a home. Manufactured homes, on the other hand, often already feature virtual tours, which could have skewed the results in their favor. Our goal was not to tip the scales but to provide a fair assessment of virtual tours’ effectiveness.
We applied filters to include only homes listed as "For Sale" and marked as "Pending & Under Contract." We then examined the listings across various timeframes, from "Days on Zillow" ranging from just one day to up to 36 months. By comparing homes with and without virtual tours, we sought to uncover the real impact these tours have on the speed and likelihood of securing a contract.
To ensure accuracy, we subtracted the number of properties with virtual tours from the total count when analyzing the data for homes without virtual tours. This approach allowed us to present a clear comparison and avoid any potential overlap or misrepresentation.
The results were nothing short of astonishing. Properties featuring virtual tours could get a home under contract up to 37.3% faster than homes without this feature. The data clearly showed that virtual tours are not just a luxury—they’re becoming a necessity for those looking to secure a contract quickly in a competitive market.
Key Findings from Our Study
Atlanta: A Hotspot for Virtual Tour Effectiveness
In Atlanta, the impact of virtual tours is profound. Our research revealed that homes with virtual tours have a 27.9% greater chance of going under contract on the very first day of listing, compared to those without virtual tours. This statistic underscores the importance of making a strong first impression in a bustling market like Atlanta, where buyers are eager to act fast on the best listings.
Interestingly, even in the rural areas surrounding Atlanta, virtual tours significantly enhance a property’s appeal. Homes in these areas are 10.2% more likely to go under contract on the first day if they include a virtual tour. This suggests that whether you're in the heart of the city or on the outskirts, offering a virtual tour could be the key to securing a contract more quickly.
Miami: The Virtual Tour Advantage
The Miami real estate market is known for its competitiveness, and here too, virtual tours have shown their value. Properties with virtual tours have an 11% better chance of going under contract compared to those without. In a city where every percentage point can make a difference, this edge is significant.
Georgia: Statewide Benefits of Virtual Tours
Expanding our focus to the entire state of Georgia, the data consistently supports the effectiveness of virtual tours. Statewide, properties with virtual tours are 13% more likely to get under contract than those without. Additionally, for properties that have been on the market for 90 days, the likelihood of securing a contract jumps by 10.8% if they feature a virtual tour. This suggests that virtual tours can be particularly beneficial for properties that are struggling to get under contract, giving them a renewed chance to attract buyers.
Florida: Virtual Tours Leading the Charge
Florida’s real estate market also saw substantial benefits from virtual tours. On the first day of listing, homes with virtual tours were 37.3% more likely to go under contract. After 30 days, this effect was still strong, with a 31.7% greater chance of a contract being signed. Even at the 90-day mark, homes with virtual tours showed a 29.7% higher rate of getting under contract.
Conclusion: Virtual Tours Are the Future of Real Estate
Our study clearly demonstrates that virtual tours are more than just a fancy feature—they’re a powerful tool that can significantly increase the likelihood of getting a home under contract. Whether you’re in a fast-paced city market like Atlanta or Miami, or in a more rural area, offering a virtual tour can give your property the edge it needs to stand out and secure a contract faster.
In today’s digital age, where buyers expect to explore properties from the comfort of their own homes, providing a virtual tour could be the difference between getting a home under contract quickly and seeing it linger on the market. As our data shows, this small investment in a virtual tour can lead to significant returns, making it an essential strategy for any homeowner or real estate agent looking to stay ahead in the market.
So, if you’re preparing to list your home, consider the power of a virtual tour. It’s not just about showcasing your property—it’s about getting it under contract faster, and for the best possible price.
