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How Are Virtual Tours and Professional Photography Impacting Real Estate Sales? Are Banks Moving Towards Jumbo Loans?

Virtual Tours

The marketing of homes has transitioned more from just photos to being able to more realistically show a property which now includes 3D Tours, photo’s, and arial drone videos.

A person should not rely on a virtual depiction of the home in making an offer on a property but they should do a walk through in order to see how big the house is and what the real condition is.  When a realtor just shoots a video via their phone as opposed to using professional photography, the quality isn’t there and the viewer has to wait to hopefully see the area of the home they are interested in since the video controls what the viewer is permitted to see.

There is a possibility to mislead the buyer by using Photoshop in the virtual depiction or by leaving out angles or problem areas.  There can be some opportunity to mislead.  Consequently, it is important to physically walk the property prior to completing a purchase.

Drone photography is becoming important for larger homes with pools or homes in larger communities.  It makes the home feel more luxurious and worth more. Photographers should have a pilot’s license if you are going to be shooting your drone videos for commercial purposes.  There is always the possibility that a drone could fly into a restricted area, hit something, or invade the privacy of others.

There are many out of country investors that are willing to risk not walking the property and only relying on a virtual 3D depiction and drone photography.  Many times, by using this type of marketing you can increase the apparent value by thousands of dollars.  Frequently getting these increased prices requires using virtual staging as well.

Rising Prices Fuel the Private Label Market

Banks are moving their available loan funds into the Jumbo market which for Clark County Nevada currently sits at 548,250.  Potentially, the word on the street is that this figure is going to be bumped up to $625,000 sometime next year. 

There are indicators that the average home sale market will level off from previous strong advances and that it is the luxury and ultra-luxury market that is now going to take off.

Banks and lenders have seen the writing on the wall and are moving much of their resources towards Jumbo loans.  The banks and mortgage lenders are not facing the same challenges that they faced in 08’ and 09’.  Back then, due to poor lending practices and a declining sales price market, home owners were caught between a rock and a hard place in that they were asked to make payments on property that was worth much less, and still declining, as compared to when they originally purchased the property.  This time, homes have increased in value so much that these same people can now sell their property due to the high demand at a profit and avoid foreclosure in the process. 

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