Online Real Estate Videos Increase Perceived Property Values

Online Real Estate Videos Increase Perceived Property ValuesA recent survey by PropertyPreviews demonstrates the impact that online videos and professionally produced photography have on perceived real estate property values.  According to the study, survey results show that the use of an online video tour in marketing real estate property increased the perceived value of a home by 6%.

Additionally, users indicated that they would be more likely to actually be interested in and visit homes on the market that had online video or professional photography associated with the listing. Finally, The data also shows that individuals who viewed a video of a property felt the listing would be on the market for a shorter period of time when compared to similar homes.

Online Real Estate Videos Increase Perceived Property Values

"In this difficult housing environment, real estate professionals and home sellers need to do all they can to differentiate their property," said Brian Balduf, CEO of VHT. "While perceived value is not the same as what someone ultimately pays for a property, it sets the benchmark as to what this property is worth in a buyer's mind compared to other homes in the same neighborhood. First impressions often have a big impact on a buyers' decision making process on which homes to visit and how much to offer.”

Professional photography and video creation services are readily available to real estate professional, with costs ranging from free to a few hundred dollars. The use of these services has increased significantly as evidenced by the number of real estate related videos on sites like YouTube.

"Professional photographs and videos are just as essential as a yard sign," said recent home seller Patricia Potocki of Palatine, IL. The small investment made by my real estate agent was absolutely worth it and really set my home apart from other properties in the area.”

"More than 84 percent of prospective home buyers start their search on the Internet, so the use of video to market a property is essential," said Jeff Harris, general manager of PropertyPreviews.com. "Videos are free to create on PropertyPreviews.com so the return on investment is significant and home sellers should be demanding it.”

To capture the viewpoint of the typical prospective home buyer, the survey included responses from several hundred individuals, evenly distributed nationally among male and female, between the ages of 35 and 54 with more than $75,000 in household income.

The respondents were shown descriptions of homes, some of which also included a video and some professional photography. They were then asked about their perceived value of the home; how likely they were to visit a home; and how quickly they thought the property would sell. The survey methodology was designed by a graduate Research class at the Kellogg School of Management at Northwestern University.

Survey Results Summary:

  • 320 respondents viewed homes in the $400,000-$600,000 range.
  • Respondents that viewed listing information accompanied by professional photography valued the property at an average price of $460,735, an increase of 11.5 percent or $52,896 over the average perceived price of the description-only property, $407,839.
  • Respondents viewing a video valued the home at an average price of $432,329, an increase of 5.7 percent or $24,490, over the average perceived price of the description-only property, $407,839.
  • Survey respondents believed a home with professional photography was three times more likely to sell within the standard listing period than a home marketed with only descriptive information.
  • When asked how likely they were to visit the homes listed with professional photography, seven times as many respondents indicated that they were "very likely" to visit the home as those who said they were "very likely" to visit a home with only descriptive information.

I think it would be interesting to see this research expanded to focus on real estate video tours (essentially photo slideshows) vs. professionally produced online video for real estate.  My feeling is that given that professional photography produced a large lift in survey results, the same could be said of professionally produced online video.   Perhaps the combination of the 2 would be even more powerful?


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Posted in Video Marketing
About the Author -
Mark Robertson is the Founder and Publisher of ReelSEO, an online information resource dedicated to the fusion of video, technology, social media, search, and internet marketing. He is a YouTube Certified, video marketing consultant and video marketing expert, popular speaker, and considered to be a passionate leader within the online video and search marketing industries. View All Posts By -

What do you think? ▼
  • Mark Spivey

    Streaming video is having a huge impact in the real estate industry.
    I work for a streaming media provider and many of our customers who work as realtors are seeing significant increases in their sales and connectivity with their clients as a direct result of utilizing this technology.
    They are using a combination of streaming video embedded in their websites, video email and live broadcasting which has also effectively reduced their overall advertising and travel expenses (and that of their clients).

  • http://videoproductiontips.com/ Lorraine Grula

    Video is indeed a great way to showcase property. Fortunately, the kind of video production required for most real estate videos is not difficult. Houses do not move, so you can use still pictures, which makes it much easier than using video footage. Still pictures files are smaller and easier to handle.

    Taking decent still shots is also easier for most people than taking decent video. For editing, upload your still shots to animoto.com, an automated online editing service. Animoto makes editing video very simple and ordinarily, editing is complex with a high learning curve.

    I have some clients who do this and the automated editing saves them tons of time and increases their output dramatically.

    Thanks
    Lorraine Grula
    video Production Tips

  • anthony

    Has there been another survey this year? With Video vs Pro photo's or combined with them?

  • RonaldEmmet

    In these difficult financial times, the real estate market has dropped and has been rather slow compared to the same period in the previous years. Agents must use every little trick possible to promote their properties. Along with video tours and professional photography, Google maps offers the chance for the potential buyers to see the exact location and surroundings of any property. This makes it a lot easier for them to decide if they want to actually visit it or not.
    _____________________
    Austin real estate

  • Heath Cowart

    We are seeing amazing results from professional quality broker hosted videos. Homes selling in 12 days with full offers and many more amazing results. http://residential-video.com/

  • http://www.facebook.com/profile.php?id=100001124668016 Charles Mackenzie-Hill

    Video not only helps the buyers in the selection process and buyers maximize the sale price. Video shot well, will also help the agent get noticed In a very competitive business.

    • Allan MacKenzie

      Awesome stuff!

  • http://www.facebook.com/profile.php?id=148064168565853 SteamboatsMyHome – Steamboat Springs Real Estate Information

    Always good to see our assumptions brought to reality with stats. Thanks

  • Arlee Carson

    Online video creates a higher probability selling scenario because they filter out disinterested buyers and bring in higher quality buyers. Here's how: Real estate search engines are primarily filtering tools, as they help buyers find homes that suite their lifestyle, budget and needs. When online video is added to the equation, this is attractive to buyers because it enables the buyer to more easily qualify any home conveniently from just about any location as often as they like. Buyers watch/study the video several times, obtaining much better detail on what is important regarding location, size (floorplan), amenities, etc. If they don't like what they see, no showing is scheduled and no time is wasted. However, if the video has been viewed and a walk-thru is scheduled, what level of quality is the buyer at now? As an agent or home owner, when showing your home to a buyer, which type buyer would you prefer to work with: buyers already very familiar with all the home has to offer or, those that have only seen a few pictures? Real estate video marketing plans designed to help videographers and real estate agents/agencies succeed together.

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