Have you heard about Blockchain technology in real estate? If yes, you have landed on the right platform. It has a great impact in real estate market and changes all the innovation that we use to conduct future transactions. Here are the some of the ways that tell you how blockchain technology can benefit the real estate market.
Benefits of Blockchain in real estate:
Direct Interaction: It is necessary for both buyers and sellers to clarify their doubts if they have any and conduct the necessary negotiations immediately to each other to make the entire real estate process more cost effective and quicker at the same time for both parties.
Smart Contracts: Smart contracts play a vital role in applying blockchain technology. It includes several advantages such as transparency, immutability and security. Isn’t it interesting? In short, there is a complete transparency given by the smart contracts. Every transaction is recorded so that it would be available to public in any case if they want and there is a note of every transaction on a distributed ledger in order to avoid all the fraud with this technology.
Not only this, you can also use private keys to digitally sign transactions for helping the receiver to identify the sender and also for confirming that the message or the document is coming from a relevant and authentic source. It basically provides a complete security and safety as well.
Cryptocurrency : There is more payment options in order to create another class of decentralized assets to help blockchain. You can use both fiat as well as cryptocurrencies with blockchain for investing in real estate market. According to your needs, you can tailor your payment as well.
Elimination of intermediaries : The whole bunch of intermediaries include agents, appraisers and notaries so it is very necessary to eliminate the overwhelming part of the blockchain which substantially allow go eradicate the fees and charges that can also go with normal intermediaries . You can save maximum time and significant cost on cutting up the fifty percent of the price while buying and selling the property.
Increased liquidity due to tokenization : It enables the real estate buyers for buying the fraction in properties all over the world. Therefore, we expect that with tokenization, owners of the expensive property will sell their assets quickly for free of “urgency” premium. But for the smaller investors, tokenization will diversify their global real estate by raising a small ticket.
This will show how the blockchain-enabled primary issuance of real estate will add liquidity in the intrinsically illiquid market to access for the best in real estate sponsors worldwide. Due to this, new tokenization trend, traditional exchanges like Nasdaq and SIX have reported their own digital platforms development to raise token offerings.