Real estate has been a paper and pencil business for decades. However, technology is changing these as it transforms architectural designs, as well as the concepts behind property sale and management. The adoption of cryptocurrency within the real estate industry is among the latest developments in this front. Subsequently, it's significant to take note of some of the potentials of blockchain technology application in the real estate industry to keep ahead of the competition.
Real estate-related scams are damaging to the industry's reputation. Scams lower confidence among potential buyers " especially those who wish to acquire property via online channels. This increases the number of checks and balances and complicates payment procedures " a matter that hikes property fees and deters potential investors.
The digital blocks that makeup blockchains are highly encrypted and neither can they be decrypted using a single computer. Network participants within the realms of the cryptocurrency market are also assigned unique signatures. Losing track of monetary transactions made using Bitcoin and other crypto brands is difficult. With these security measures in place, it's possible to recapture investor confidence, lower property prices and widen the property market on a global scale.
Efficient Record Keeping
Establishing a specific property's ownership history is significant. This requires an elaborate record detailing how the property on sale has changed hands over the years. Ordinarily, this process is handled using computing operations that are often subjected to human error or manipulation.
Blockchain technology takes care of this problem as any property purchased using cryptocurrency is automatically recorded in an encrypted ledger. Accessing and manipulating the ledger is as difficult as faking a cryptocurrency unit. Subsequently, it's possible to get authentic search results on a property within seconds. To this end, blockchain technology makes buying a house as easy as purchasing a loaf of bread.
Of Intermediaries and Regulatory Factors
Going through the ordinary channels to buy property requires you to involve the services of a property attorney, a real estate agent and a banking institution. In some cases, you may also need a property scout and various go-betweens who overlap include insurance companies and their agents. Remember that everyone gets paid in the process and the cost reflects on the property's final price tag.
The number of institutions involved means back and forth signing of documents. This consumes time and resources. As a property developer, you have to contend with a slow-paced turnover and return on investment (ROI) since you are obligated to pay all the relevant property taxes before handing it over to the new owner. The arrangement eats into your profits and lowers your ability to develop more units. Buyers are, on their part, forced to wait for long periods to get the keys to their dream properties.
Since cryptocurrencies are not subjected to specific banking regulations, you don't have to go through myriad institutions to buy or sell the property. All you need is a seller or buyer who is willing to accept Bitcoin or any other form of cryptocurrency that you're comfortable with.
The potential presented by blockchain technology in the real estate sector includes increased market liquidation, ease of signing up and managing lease agreements besides having access to relevant big data that can be used to make smart decision and groundbreaking moves.