The best way to think of video is that it is just one more channel of communication, and you have to know which channel/medium is most suited to the market segment you’re after.

Quality video productions that make you look good generally cost too much as a % of the value of the home. There is limited or no ROI in trying to do video for homes that are on the lower end of the scale.

However, it’s not about you looking good, it’s more about buyer convenience and economics of price point.

If your moving 7+ figure homes it makes perfect sense to add this channel and have it done professionally. You know that a 7 figure home buyer can afford the broadband required to display high quality video; one second of video requires 15-30 times the bandwidth if a comparable size jpg.

320x340 video simple does not convey the impact that a larger jpg can, and the jpg will display in seconds and let the client move at their own pace.  500x375 flash (flv) video seems to hold the most promise for this for now.

Adobe has released its high-definition encoder that makes HD possible on the web, and there is a higher probability that the 7+ figure home buyer would expect a little more service.

I would go as far as to say that when a 7+ figure buyer phones, offering them a custom video tour of homes you have selected just for them, would be highly appreciated as it saves the buyer a huge amount of time…you only take them to the short list of home after reviewing a larger number in online video, or on DVD for that matter.

Saving the customer time is an added selling feature.

To make this whole thing work you would have to partner with other agents and pool resources so you have a pool of high-end homes available in video format. There is economics of scale in doing it this way, you would save you and your buyer a lot of miles and time, and as word got around that this service was available high end buyer would probably seek you out through referrals.

This is sound marketing strategy IMHO