Bruce Fazio on “How Blockchain Affects The Real Estate Market”
Today, real estate and technology go hand in hand. New technological advancements are developing which is creating more options for realtors and developers to purchase new homes. The blockchain is one particular technology that is making a major impact on the real estate market as it offers real-time data that can help secure financial transactions. According to TechCrunch, these advantages coming from blockchain in the real estate market have been ignored for the most part, despite it having the potential to affect millions of homebuyers due to its fraud prevention and transparency. Let’s take a look at a few ways that blockchain can make an impact on the real estate market.
Speed Up The Transaction Process
Through the use of blockchain token, there would be no use for title searches or a middle man to secure a title transfer. With a blockchain distributed database used to prove the authenticity of a transaction, homeowners can transfer the title without the need for a third party verification process.
One of the major costs that comes with real estate transactions is the lack of transparency, and this could be due to the number of middlemen involved (escrow, title, insurance, brokers, etc.) However, blockchain allows the transactions to be peer to peer without any middlemen, and all the information will be recorded in a transparent manner leading to more efficiency and trust.
Secure Online Data Storage
Blockchain technology allows for more secure online data storage, better than a cryptocurrency. So, you can use this in the future to store property records such as deeds, plats, surveys, title chain, and more. In fact, blockchain might be included in the multiple listing services as well.
Be Cost Effective While Trusted
Blockchain will also eliminate the need for title insurance while adding efficiency and confidence to transactions. It will also add more transparency across the purchaser platform so that finances such as the inability to afford an attorney will not be a factor in understanding title and ownership issues.
Make Good Information Available Openly
According to Gordon Gekko, “The most valuable commodity I know of is information.” Blockchain technology will be a repository of information, and once this information is properly entered, it will be extremely valuable. Now, when organizations have solid information, and it is openly available, it diminishes the risks to all the parties involved.
Blockchain technology and cryptocurrencies will continue to make an impact on the real estate market, especially as it continues to develop, making the entire real estate process more efficient. It will be exciting to see the new heights this takes the industry in the coming years.
About the Author: Bruce Fazio is a real estate developer based in Collegeville, Pennsylvania. Over the course of his career, Fazio has been involved in nearly every aspect of the real estate industry from construction to investment. As the founder of Edgewater Residential Homes, Bruce strives to recognize real estate trends and develop properties that will attract families.