3 Shocking Ways Blockchain Will Change Real Estate

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This is how cryptocurrency and the blockchain will disrupt real estate. Find out why real estate agents, lenders and title companies should be scared.

SAN DIEGO, CA, USA, Dec. 13, 2022 /EINPresswire.com/ — Typically, the real estate industry is slow to adapt to innovations in technology. What will happen when blockchain and cryptocurrencies become even more mainstream? Real estate agents, home buyers and sellers will be forced to either adapt or be left behind. The way 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 blockchain will change real estate forever.

Fewer intermediaries

Once all real estate data is on the blockchain, fewer cooks will be 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 already available. Fewer intermediaries will be needed to complete a transaction.

Buyers don’t have to wait weeks to be approved for a mortgage before closing on a property. Estate agents do not need to review offers when they come in. Smart contracts will trigger certain events based on past 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 real estate agent will be easy when blockchain technology is integrated into the real estate industry. The home sale process will take place 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 sellers use, it may take one to two weeks to receive the final report. When selling a house, this slows down the process enormously. Is there a better way?

When blockchain technology is widely used in real estate transactions, all title information will be publicly available on living documents associated with each property. A completed title report will no longer be necessary because the information will already be there. For example, selling a house with an open insurance claim will be much easier with the speed and transparency of blockchain technology. Buyers want to know exactly what they are getting into. Sellers do not have to wait two weeks to receive a title report.

Fraud will also be significantly reduced in the real estate industry when everyone is on the blockchain. Fraud will be almost impossible to get away with. Inherited property will have clear owners instead of families fighting over them. Having a wealth of information about each property clearly written on the blockchain will save home buyers and sellers time, money, mistakes and hassles.

Fractional home sales

Using the blockchain, sellers can divide a property into fractional and purchasable parts. This is done by creating an NFT. Homebuyers can buy fractions of NFTs instead of the whole thing. Several buyers can buy parts of the same house, apartment complex or land. First-time home buyers can now afford fractional properties as opposed to saving up thousands of dollars to buy an entire property. This will also help unique properties sell because there are a limited number of buyers. There is strength in numbers, especially when buying property.

Should real estate agents be afraid of cryptocurrency and the blockchain? Anyone who is afraid to adapt to technology should be afraid. Blockchain will undoubtedly change how real estate transactions are conducted. They will happen much faster than we are used to. In addition, they will need far less human touch to reach the closing table. Because of that, real estate agents and other professionals must adapt to the changing technology in order to stay relevant.

Alex Capozzolo
SD House boys
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