Manufacturers have introduced some amazing products this year, from smog-eating roofing tiles to squeak-preventing subfloor fasteners. But the one product that could revolutionize the way homes are built and sold belongs to Toronto-based Aareas Interactive, which has created a virtual system for presenting home building projects to prospective buyers before construction even begins.

While Aareas Interactive has been around for 20 years, this year the company unveiled an iPad app (available at Apple’s app store under Aareas Interactive) that enables sales agents and consumers to tour homes virtually. This technology even includes the ability for buyers to choose options and sign sales contracts online. What makes this technology different from others is the photo realistic quality of the digitally rendered images. Frankly, it takes a trained eye to discern the difference between these virtual images and actual photographs.

This technology is perfectly suited for high-rise builders who would like to create a virtual sales environment before digging ground on a project. The Aareas team can create photo-realistic images from architectural drawings, producing a virtual rendition of the building and the models inside — including furniture. This technology is clearly the future of selling homes.

Aareas Interactive specializes in photo-realistic renderings that can save builders and developers the expense of creating actual models.

Ideal for Multi-Family and High Rise

In the auto industry, interested buyers can go online and view all of the models offered and virtually customize their car, print or e-mail the selections, and get a price quote from a sales agent. Hyundai now even offers an iPad to every new owner loaded with his or her owner’s manual instead of the traditional printed copy in the glove box. Wow! And a car costs how much less than a house?

When it comes to using technology to improve the customer experience, the housing industry lags sorely behind many other businesses. That’s why companies such as Aareas hold so much promise for the industry’s future.

However, one of the factors keeping these new technologies from taking hold has been price. Single-family builders carry so many more models per customer than the auto industry that it literally can break the bank to provide this functionality. For example, a complete home presentation system using photo realistic imagery can range from $30,000 to $150,000 per project, presenting a big financial challenge for most builders. That said, high-rise builders will find this price quite cheap compared to actually building a speculative project. Using virtual technology, a high-rise and perhaps a multi-family builder could pre-sell homes before making the investment to actually build.

Aareas Interactive produces native applications that offer direct connections to a builder’s sales center to ensure real-time data is being delivered at all times.

Single-Family Outlook

The case for single-family builders has not quite arrived, but it’s just delayed until pricing becomes more reasonable — which is happening. We have seen prices steadily come down and the technology improve as shown in the new Aareas iPad application. It’s a stunning example of how homes will be sold in the future. Imagine being able to have buyers go online to tour homes and completely customize what they want right from home. It would create a much simpler selling environment, whereby people understand more and have greater confidence.

It’s a well-known fact of home sales that the sooner buyers begin personalizing their homes, the greater likelihood they will buy that home. The auto industry figured this out a long time ago and provided the virtual tools to accelerate it. For the leading builders, they will jump into the virtual world with huge increases in sales to show for it. The fact is, people want self-directed tools to learn about products and services before they visit.

According to the National Association of Realtors, 90 percent of home buyers are conducting their research online before they go out to physically visit a home. With those kinds of numbers, it won’t be long before single-family builders will adopt this technology, too.

Amazon is a shining example of the power of providing self-directed information. Its website is the leading online retailer because it enables consumers to research and compare products easily, right from their computer or mobile device. While the company’s sales keep soaring, retail stores continue to see declines in walk-in traffic, and the traffic that does come in already knows what they want. It’s the way people buy today, and the housing industry needs to get with the times. Sure, builders have websites and allow some customizations, but not to the degree other industries have achieved.

Home builders may want to take advantage of this developing technology to gain market share, which is the only way to survive in today’s economy. For more information about Aareas Interactive’s iPad app, click here to see an interview from the International Builders’ Show.

Paul Cardis is founder and CEO of AVID Ratings, the leading provider of customer loyalty research and consulting to the home-building industry. Through the AVID system, home builders improve referrals, reduce warranty costs, and strengthen their brands. He can be reached at paul.cardis@avidratings.com.