Human-Computer Interaction and Human-Building Interaction

The Effect of Virtual Tours on House Price and Time on Market

Wei Yua, Zhongming Ma, Gautam Pant and Jing Hu

Published 2020

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📄 Paper
The integration of augmented reality in virtual tours was recently identified as a top emerging trend in real estate. However, little research has been conducted to examine the impact of existing virtual tours on house search process and transaction price. Our article aims to fill this gap by studying the impact of virtual tours on transaction price and marketing duration (time on market). Matching the 2016 Orange County multiple listing service (MLS) single-family transaction records with Home Mortgage Disclosure Act (HMDA) data and U.S. Census data, we apply both propensity score matching methods and two-stage least squares (2SLSs) models with instrumental variables derived by machine learning and text analytics methods. The findings of this study not only shed light on the importance of the current and future use of technology, but also provide practical implications for real estate stakeholders with respect to effective strategies to improve house value and increase property sales.

Abstract

The integration of augmented reality in virtual tours was recently identified as a top emerging trend in real estate. However, little research has been conducted to examine the impact of existing virtual tours on house search process and transaction price. Our article aims to fill this gap by studying the impact of virtual tours on transaction price and marketing duration (time on market). Matching the 2016 Orange County multiple listing service (MLS) single-family transaction records with Home Mortgage Disclosure Act (HMDA) data and U.S. Census data, we apply both propensity score matching methods and two-stage least squares (2SLSs) models with instrumental variables derived by machine learning and text analytics methods. The findings of this study not only shed light on the importance of the current and future use of technology, but also provide practical implications for real estate stakeholders with respect to effective strategies to improve house value and increase property sales.

Topics

AI in asset managementAI-Powered Real Estate ValuationML for sustainable real estateVirtual Property Tours and MarketingXR immersive walkthroughspredictive pricingreal estate analyticsreal estate visualizationvirtual staging

Cite this paper

@article{000f41ae,
author = {Wei Yu and Zhongming Ma and Gautam Pant and Jing Hu},
title = {The Effect of Virtual Tours on House Price and Time on Market},
journal = {Journal of Real Estate Literature},
volume = {28},
number = {2},
pages = {133--149},
year = {2020},
publisher = {Routledge},
doi = {10.1080/09277544.2021.1876433},
URL = {https://doi.org/10.1080/09277544.2021.1876433},
eprint = {https://doi.org/10.1080/09277544.2021.1876433}
}