This is how cryptocurrency and the blockchain will disrupt real estate. Find out why realtors, lenders, and title companies should be afraid.
— Alex Capozzolo – Realtor
SAN DIEGO, CA, UNITED STATES, December 13, 2022 /EINPresswire.com/ — Typically, the real estate industry is slow to adapt to innovations in technology. What will happen when the blockchain and cryptocurrencies become even more mainstream? Real estate professionals, home buyers, and sellers will be forced to either adapt or be left behind. The way that houses are bought and sold will be streamlined through blockchain technology and smart contracts. Gone will be the days of waiting months to sell a house. Here are three shocking ways that the blockchain will change real estate forever.
Once all real estate data is on the blockchain, there will be fewer cooks needed in the kitchen. Realtors, lenders, and title companies will no longer have as much demand as they do now. Houses will be sold on the blockchain within minutes because all relevant data will be publicly listed and available already. Fewer middlemen will be needed to close a transaction.
Buyers won’t have to wait weeks to get approved for a mortgage before closing on a property. Realtors won’t have to review offers as they come in. Smart contracts will trigger certain events to happen based on preceding events and data, all on the blockchain. These parameters will be set by the seller and executed by the blockchain automatically. Trying to sell a property without a realtor will be easy once blockchain technology is integrated into the real estate industry. The home-selling process will happen in seconds versus months.
No More Title Reports
Running a title report is one of the slowest parts of the real estate process today. Depending on the title company that sellers use, it can take one to two weeks to receive the finalized report. When selling a house, this slows down the process tremendously. Is there a better way?
Once blockchain technology is used widely in real estate transactions, all title information will be publicly available on live documents pertaining to each property. A fully run title report will no longer be needed because the information will be there already. For example, selling a house with an open insurance claim will be much easier with the speed and transparency of blockchain technology. Buyers will know exactly what they are getting into. Sellers won’t have to wait two weeks to receive a title report.
Fraud will also greatly decrease within the real estate industry once everyone is on the blockchain. Defraud will be nearly impossible to successfully get away with. Inherited property will have clear owners instead of having families fight over them. Having a plethora of information about each property clearly spelled out on the blockchain will save home buyers and sellers time, money, mistakes, and hassle.
Fractionalized Home Sales
By utilizing the blockchain, sellers can split up a property into fractionalized and purchasable portions. This is done by creating an NFT. Home buyers can purchase fractions of the NFT instead of the entire thing. Multiple buyers can purchase fractions of the same house, apartment complex, or piece of land. First-time home buyers can now afford fractions of properties versus saving up thousands of dollars to purchase an entire property. This will also help unique properties sell because there is a limited pool of buyers. There is power in numbers, especially when purchasing real estate.
Should real estate professionals be scared of cryptocurrency and the blockchain? Anyone who is afraid to adapt to technology should be afraid. The blockchain will undoubtedly alter how real estate transactions are performed. They will happen much faster than we are used to. Additionally, they will need far less human touch to reach the closing table. Because of that, realtors and other professionals must adapt to the changing technology in order to remain relevant.
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Why Realtors Should Be Terrified of Crypto [hot take from an agent]