This paper investigates the role of Virtual Reality (VR) in transforming consumer behavior within the housing sales process, focusing on how VR changes consumer preferences and willingness to pay. The study explores three key questions, including the influence of VR-provided online information on offline information searches, the impact of extensive VR information on consumer willingness to pay, and the capitalization of VR's effects into market prices. Using a unique dataset covering online housing information, offline property viewings, and sales transactions, the paper examines the complex two-stage information search process. Findings highlight that the incremental information and signals from VR increase consumer search priorities, increase willingness to pay and ultimately push transaction prices higher than preferences. This research contributes to a comprehensive understanding of the relationship between VR technology, consumer behavior, and market dynamics, illustrating how VR can improve service delivery and create a more efficient housing sales process.