Virtual Reality Tours Are Helping Homes Sell Faster Without Raising Prices, New Research Shows

Virtual reality has been creeping into many industries, but real estate is one area where its impact is now being backed by solid data. A new academic study shows that virtual reality (VR) home tours significantly reduce how long houses stay on the market, even though they do not increase the final selling price. The findings offer a clear, evidence-based look at what VR actually does for buyers, sellers, and real estate platforms.

The research was conducted by scholars from the University of Texas at Dallas, the University of Washington, and Tongji University in Shanghai, and it was published in the respected journal Information Systems Research. Rather than relying on anecdotes or agent opinions, the researchers analyzed real-world transaction data to understand whether VR genuinely helps property sales or simply adds another layer of marketing hype.

What the Study Looked At

The researchers focused on nonimmersive virtual reality, meaning VR tours that do not require a headset. These are the interactive, 360-degree walkthroughs commonly found on real estate platforms, where users can click through rooms, rotate views, and explore layouts freely on their phones or computers.

To measure VR’s real impact, the team examined data from China’s largest real estate platform, which functions similarly to Zillow or Realtor.com in the United States. The dataset covered nearly 43,000 residential properties listed between 2018 and 2019, some of which offered VR tours while others relied on traditional photos and videos.

Two main outcomes were analyzed:

• Time on market, measured in days from listing to sale
• Final selling price

This approach allowed the researchers to isolate whether VR changes buyer behavior in meaningful ways.

Homes With VR Tours Sell Much Faster

One of the clearest findings from the study is that VR tours dramatically shorten the selling timeline. Homes that included VR tours stayed on the market for an average of 19 days, compared to 34 days for similar homes without VR. That is a reduction of roughly 15 days, which is a substantial difference in real estate terms.

This faster turnaround suggests that VR helps buyers make decisions more quickly. Instead of visiting multiple properties in person or relying on limited photos, buyers can screen homes more efficiently and rule out poor fits early in the process.

The researchers concluded that VR does not distort the market or mislead buyers. Instead, it improves the flow of information, helping buyers understand a property’s layout and condition sooner.

VR Does Not Increase Selling Prices

While VR clearly helps homes sell faster, the study found no meaningful effect on final sale prices. In other words, VR does not make buyers pay more for a property.

This finding is important because it challenges a common assumption that high-tech marketing tools automatically inflate perceived value. According to the researchers, VR is not a tool for price manipulation. It simply shows the house more clearly.

The study emphasizes that VR presents a more truthful reflection of a property’s quality, which benefits both buyers and sellers by reducing uncertainty rather than artificially boosting demand.

Why Virtual Reality Works in Real Estate

Traditional listings rely heavily on photos and short videos, which can be limiting. Photos often capture only flattering angles, while videos are linear and restrict how viewers explore the space.

VR changes this by allowing users to:

• View rooms from multiple angles
• Understand spatial relationships between rooms
• Get a clearer sense of size and layout
• Move through the home at their own pace

Because of this, VR acts as a high-information tool rather than a persuasive one. The study found that VR’s main value lies in its ability to reduce uncertainty, especially for buyers who cannot visit a property in person right away.

Not All Homes Benefit Equally From VR

The study also found that VR is not equally effective for every type of property.

Homes that benefited the most from VR tours were:

• Larger houses, where layout and space matter more
• Newer or higher-quality properties, where the design can be accurately showcased

On the other hand, VR offered limited advantages for older or outdated homes. Because VR cannot hide flaws or improve a property’s condition, it does little to enhance the appeal of homes that already struggle with quality issues.

This reinforces the idea that VR is not a cosmetic fix. It cannot make a poorly maintained house look better, and it does not exaggerate positive features.

Filling the Information Gap When Agents Fall Short

Another interesting insight from the research is how VR interacts with the role of real estate agents. The study found that VR can partially compensate for lower-quality agent service.

When agents are slow to respond, unhelpful, or unable to provide detailed explanations, VR tours can step in and deliver essential information directly to buyers. In this way, VR acts as a complementary tool, not a replacement for agents.

However, the researchers made it clear that VR does not eliminate the need for human expertise. Instead, it ensures buyers are not entirely dependent on agent availability to understand a property.

What This Means for Real Estate Platforms

The findings suggest that real estate platforms stand to gain financially by expanding VR offerings. Faster sales can lead to:

• Higher platform engagement
• More frequent transactions
• Increased listing competitiveness

Since VR does not inflate prices or mislead buyers, platforms can promote it as a buyer-friendly feature rather than a marketing gimmick.

For sellers, especially those listing larger or newer homes, VR offers a practical advantage by attracting serious buyers more quickly. For buyers, it serves as an efficient screening tool that saves time and effort.

The Bigger Picture: VR’s Role in Digital Property Sales

This study fits into a broader trend of digital transformation in real estate. Over the past decade, online listings have evolved from simple photo galleries to immersive, interactive experiences. VR represents the next step in that evolution.

Unlike flashy advertising tools, VR’s strength lies in accuracy and transparency. By giving buyers better information earlier in the process, it reduces wasted time, unnecessary visits, and mismatched expectations.

The research also highlights an important lesson for emerging technologies: usefulness matters more than novelty. VR succeeds in real estate not because it is futuristic, but because it solves a real problem.

Final Thoughts

The study provides strong evidence that virtual reality is changing how homes are sold, but not in the way many people might expect. VR does not raise prices or create artificial demand. Instead, it helps properties sell faster by giving buyers clearer, more reliable information.

As VR tools become more accessible and affordable, their use in real estate is likely to grow. For now, the message is clear: virtual reality works best as an informative tool, not a hype machine.

For buyers, sellers, agents, and platforms alike, this research offers a grounded and realistic view of what VR can and cannot do in today’s housing market.

Research Paper:
https://pubsonline.informs.org/doi/10.1287/isre.2021.9138