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Blockchain in Real Estate: How its changing the Real Estate Industry?
06 Apr

Blockchain in Real Estate: How its changing the Real Estate Industry?

Category : Blockchain / by

Globalization is undergoing rapid transformation. Blockchain is the biggest technological advance of the past decade. In the modern economy, computer technology is used for almost everything. The world has become digital.

There is no doubt that Blockchain technology has the potential to change industries and even change the world a great deal. And it is changing the real estate industry for the better.

Every business and industry uses the buzzword blockchain.

Yet, what does it really mean for your business or for your visitors?
What does it have to do with improving your business or improving your website?

Businesses and industries are still unaware of how much they can succeed by integrating blockchain technology into their business models or websites.

It was not just designed for industries and businesses, but also for people to be able to do more and make their life easier.

What if blockchain technology could instantly improve how people perceive your business?

You might think, “These individuals are crazy!”.
Customers can influence a business by just thinking about it – something “crazy” “blockchain” designers are quite familiar with.
Blockchain isn’t just a buzzword though – it can be found in everything from e-commerce stores to chatbots.

Property scams are not surprising since so many people are looking to buy and sell property. A new FBI unit has been established to handle all complaints. But that doesn’t mean the FBI catches them all.

Property crimes are the most common type of crime in Australia, but they only catch about 2 percent of all such crimes every year. For people like that, an investment in property or a real estate sale wouldn’t make sense.

However, this is where blockchain comes into play. Because blockchain is reshaping the real estate business, it has the potential to make all property transactions more transparent. This implies that sellers can monitor the progress of their property, and purchasers may check on the status of their purchase.

How Does Blockchain Change Real Estate?

Blockchain has the ability to transform the real estate market from the ground up. Real-estate blockchain applications, in particular, have the potential to democratize the market and make it available to nearly anybody, all while allowing for faster and more secure transactions.
Just in case that wasn’t enough, let’s take a deeper look at all the ways blockchain may help the real estate industry:

  1. Trading Platforms & Online Marketplaces
  2. No Need For Intermediaries
  3. Real Estate Becomes A Liquid Asset
  4. Blockchain Allows Fractional Ownership
  5. Cutting Costs
  6. Digitized Documents

1. Trading Platforms & Online Marketplaces

With the advancement of technology, internet platforms and markets have changed the way we see real estate. Sites like Zillow and RedFin have made investing more accessible and practical for everyone, even while the globe is under lockdown due to a pandemic. On the other hand, the evolution of trade platforms and online marketplaces is only getting begun.

The use of blockchain in the real estate industry is just now getting traction. More individuals will be able to engage in the real estate market without worry of fraudulent transactions thanks to blockchain real estate apps. As a result, trading systems will be safer and faster, saving everyone time and money.

2. No Need For Intermediaries

Tal Shelef, Realtor and Co-Founder of Condo Wizard, is one of several industry professionals who believe blockchain real estate could disrupt how transactions are conducted. He believes “middlemen” would be the first to be impacted. “Blockchain is certain to disrupt the real estate sector or any industry for that matter,” Shelef adds, “since it will eliminate the confusing and expensive process of bargaining with a market intermediary.”

For years, blockchain has been hailed as one of the most secure ways to do business. The absolute character of each data set has proved infallible and impregnable to alteration. As a result, blockchain technology has evolved into a superior kind of escrow; a digital marketplace allows parties to exchange things without worrying about the motives of the other party.

People would be able to trade everything from legal papers to payments without fear of using blockchain real estate applications. Buyers and sellers will get better value for their money if middlemen are eliminated. Commissions and costs will no longer be an impediment, allowing for speedier transactions.

3. Real Estate Is Turning Into A Liquid Asset

Real estate will undoubtedly become more liquid as a result of the capacity to tokenize it. Real estate assets were not very liquid prior to tokenization, and they remain so now. Investors or homeowners who want to access the capital underlying an asset must first consider selling it.

Once a selection is made, the asset must be offered to potential purchasers and go through a long closing procedure. Selling a tangible real estate asset is time-consuming and costly in general. That was, of course, before real estate was tokenized.

Because digital tokens on the blockchain indicate property ownership, owners might sell their tokens instead of going through the difficulty of selling a house the traditional way. Rather than waiting weeks or months, investors and owners could conceivably cash in on their tokenized real estate in a matter of seconds.

4. Fractional Ownership Is Possible With Blockchain

Not only does the tokenization of real estate provide owners and investors with faster access to funds, but it also lowers the entrance barrier for potential owners and investors. It is no longer essential to spend an excessive quantity of money on a single investment thanks to tokens. Tokens, on the other hand, allow buyers to engage in partial ownership.

If five tokens represent an apartment building’s equitable stake, for example, purchasing all of them would convey total ownership of the asset. A buyer who simply buys two tokens, on the other hand, will possess two-fifths of the asset’s equitable stake.

5. Cost-cutting

Real estate blockchain apps have the capacity to operate as their own escrow on their own. In fact, using the blockchain to conduct transactions might eliminate the need for a number of professional businesses that specialize in facilitating transactions.
As a consequence, people who transact on the blockchain won’t have to pay the excessive costs that have come to be associated with escrow companies. Instead, each party to a transaction may rely on the algorithms run by nodes on the blockchain’s powerful computer network.
While the notion may be frightening, blockchain real estate applications would be one of the safest methods to conduct a transaction.

6. Digitized Documents

Blockchain real estate will be able to run on smart contracts since it is a completely digital platform. Smart contracts are superior to regular contracts in practically every manner, as their names imply.

According to Nick Clare, JLL UK’s Head of Project Management, blockchain can “create, authenticate, and audit contracts in real-time, across the globe, and without the intervention of a middleman, and also have specifications rooted in the transaction so that payment can only be taken as long as that the guidelines are accomplished, offering complete transparency to all parties and reducing the risk of payment disputes.”

Blockchain can disrupt or you can say fully transform any industry. So, if you have any idea about transforming a particular industry, we are here to help you with that.

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Recommended Read: What is Blockchain and Why is it the Next Big Thing?

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