How blockchain technology is set to change the real estate industry
The transaction length problem
The second issue with real estate transactions as we currently know them is the length of time they take to process. As the buying and selling process involves a number of “middlemen” — predominantly real estate brokers and agents — the process takes far longer than it has to.
If properties are sold by blockchain, everything is different. In the same way that blockchain tech for altcoins allows for the removal of banks from financial transactions, blockchain tech allows for the removal of real estate brokers and agents. Instead, the transaction can be processed and verified using a blockchain system, so the transactions could be conducted (theoretically) instantaneously.
The future could then look like this for buyers:
- Person A wants to buy a house.
- Person B wants to sell a house.
- Person A obtains a mortgage and uses blockchain technology to send the funds.
- Legal documents are exchanged.
- The transaction is finalized.
And for investors:
- A person wants to invest in a property.
- They cannot obtain a mortgage, or do not want to be a landlord.
- They invest in property without taking full ownership, using their own funds and without needing to borrow.
- They now have a property investment.
Without a doubt, the real estate industry is set to be shaken to its foundations with the changes blockchain technology can offer. However, with this seismic shift could come a lot of new opportunities for you.