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Buying a house on the blockchain could now save you money on commission.Getty
If you think about the blockchain, you might think about data, secrecy or decentralization. But the main purpose when it was created in 1992 was to create a verifiable audit trail. Back then it was incredibly useful in a scientific space, where ideas were a currency and you had to protect them. However, auditing is a universal language, and the last fan of the transparency blockchain can look like a real estate industry, where both new and established companies are considering cost reduction measures.
There are many advantages to using blockchain in real estate, including the immutable technology ledger, universal accessibility and other unique qualities. The EU market shows excellent potential for the blockchain and, until now, it is not fully exploited. While it is thought that the EU banking regulations will boost the blockchain technology, adapting to the GDPR could prove to be a potential obstacle to be overcome.
Crypto to attract customers
At present, most of the real estate transactions involving cryptocurrency require the parties to transfer their assets in fiat money, even if experiments are under way involving direct transfers of crypts into crypts. According to one of the largest real estate companies in the world Cushman & amp; Wakefield, the industry is just starting to arouse interest. In their latest Blockchain, Bitcoin and Real Estate – Part 2 of the Tech Disruptor series, they look to the industries and verticals most likely to switch to blockchain technology in the coming years, and how these innovations, in turn, will impact real estate sales . Commenting: "While it is expected that the blockchain will turn into a billion-dollar industry in the coming years, increasing to $ 9.7 billion by 2021, the report states that the adoption in commercial real estate markets is limited to today, only a handful of single-family sales have been made using cryptocurrency ".
These provisional attempts are probably associated with the volatility of the encrypted market, currently in its third downward spiral. Mainly it can add further risk to the transfer process, which tends to scare traditional banking institutions. "To date, the adoption of blockchain and cryptocurrency in our industry is in its early stages, but as with any technology that possesses the potential to essentially redefine the way in which transactions take place in real estate, we are paying close attention to it, "said Revathi Greenwood, Cushman and amp; Wakefield & # 39; s Americas Head of Research.
Cash in Fiat will still be required for post-completion payments, including taxes, transfer fees and other nominal expenses. However, some law firms are already accepting cryptography for their taxes. Potential obstacles tend to outweigh the benefits at the moment, but this does not prevent real estate agents from selling vendors open to encryption as an additional point of sale.
And there are already start-ups who are looking to explore the market, Propy facilitated a transaction in which a French buyer bought a property using Ethereum. The sale was a cross-border transaction between a French buyer and a Spanish seller and shows how the use of the crypt in long-distance purchases could be explored more in the future, especially beyond the borders.
Blockchain to reduce marketing costs
In America, where real estate is a big business, commission alone can be paralyzing. So it is not surprising the new startup Deedcoin is gaining attention for its slogan "Save 5% on commission when you sell a house". They promise to cut the standard 6% cash commission to only 1%, if you pay the rest in Deedcoin, 50 to be precise. However, there is substantial savings to be made, and not just in the United States.
European countries also have high percentages of commissions such as Italy (5%), Germany (4%), Sweden (1.5%) and the United Kingdom (1.5%) that are ready for a Interruption of Deedcoin according to the whitepaper of the company. And it also works for buyers.
Deedcoin's business model depends on reducing customer acquisition and marketing costs for their partner agents. By screening high quality agents and limiting the number of agents operating in any market, Deedcoin ensures that partner agents do not have to compete with each other and attract customers through the Deedcoin website, where customers can find and contact agents in your area. Because these agents do not need to spend time or money on marketing or acquiring customers, they can close more deals in the year and transfer savings to customers by accepting smaller fees in cash. Deedcoin's marketing strategies tie these benefits to their brand.
Deedcoin's CEO Matt Herrick said, "For the CMOs, succeeding in one of these three industries – real estate, marketing or blockchain – requires you to stay open to new ways of thinking – it's unpredictable where the real estate blockchain will end up. marketing, but it is likely that we will continue to see new ideas for the intersection of all three industries in the future and the creation of interesting and innovative branding strategies to accompany them. "
Real estate, blockchain and compliance
The growing profile of cryptocurrency will likely lead to greater interest from regulators who will try not to become a way for illegal transactions to circumvent current controls that are in place for traditional transfer procedures. The US Securities and Exchange Commission has considered many titles of cryptocurrencies, which are subject to strict regulation. SEC statements have created ambiguities (and nervous jitters!) Among US token vendors.
Concerned about Brexit and other scenarios EU regulators have not made similar claims about the status of encryption titles within their jurisdictions, generating sighs of relief and persistent uncertainty for blockchain innovators without a & # 39; clear idea of the regulatory landscape that may need to be explored in another five or ten years.
Recently Aassio spoke about the use of blockchain in the real estate sector: "Blockchain is able to manage anything, ensuring that the title deeds are authentic to allow ownership of the properties.There may be up to ten people involved in any real estate transaction, and this is far too many to have any kind of timeliness or ease for both the buyer and the seller.With the advent of the blockchain, legally binding smart contracts replace paper ones and make save time and money and trees Instead of repeatedly calling the bank or another intermediary to see if the transaction payments have been processed, blockchain provides automated payments and cash flow monitoring.The monitoring of the processes in real time can show exactly the phase of the transaction and can also facilitate cross-border transactions and conv ersion of multiple currencies. "
The result is that while slow growth, blockchain could create growth in the real estate market, while at the same time promoting transparency and low costs – a real turning point. And while some CMOs can rely on Crypto as a "novelty" hookup, they should think again. As the blockchain becomes mainstream, consumers will become better at separating precious innovation from novelty while blockchain innovation continues to make giant strides
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Buying a house on the blockchain could now save you money on commission.Getty
If you think about the blockchain, you might think about data, secrecy or decentralization. But the main purpose when it was created in 1992 was to create a verifiable audit trail. Back then it was incredibly useful in a scientific space, where ideas were a currency and you had to protect them. However, auditing is a universal language, and the last fan of the transparency blockchain can look like a real estate industry, where both new and established companies are considering cost reduction measures.
There are many advantages to using blockchain in real estate, including the immutable technology ledger, universal accessibility and other unique qualities. The EU market shows excellent potential for the blockchain and, until now, it is not fully exploited. While it is thought that the EU banking regulations will boost the blockchain technology, adapting to the GDPR could prove to be a potential obstacle to be overcome.
Crypto to attract customers
At present, most of the real estate transactions involving cryptocurrency require the parties to transfer their assets in fiat money, even if experiments are under way involving direct transfers of crypts into crypts. According to one of the largest real estate companies in the world, Cushman & Wakefield, the industry is just starting to attract interest. In their latest Blockchain, Bitcoin and Real Estate – Part 2 of the Tech Disruptor series, they look to the industries and verticals most likely to switch to blockchain technology in the coming years, and how these innovations, in turn, will impact real estate sales . Commenting: "While it is expected that the blockchain will turn into a billion-dollar industry in the coming years, increasing to $ 9.7 billion by 2021, the report states that the adoption in commercial real estate markets is limited to today, only a handful of single-family sales have been made using cryptocurrency ".
These provisional attempts are probably associated with the volatility of the encrypted market, currently in its third downward spiral. Mainly it can add further risk to the transfer process, which tends to scare traditional banking institutions. "To date, the adoption of blockchain and cryptocurrency in our industry is in its early stages, but as with any technology that possesses the potential to essentially redefine the way in which transactions take place in real estate, we are paying close attention to it, "said Revathi Greenwood, Cushman & Wakefield & # 39; s Americas Research Manager.
Cash in Fiat will still be required for post-completion payments, including taxes, transfer fees and other nominal expenses. However, some law firms are already accepting cryptography for their taxes. Potential obstacles tend to outweigh the benefits at the moment, but this does not prevent real estate agents from selling vendors open to encryption as an additional point of sale.
And there are already start-ups who are looking to explore the market, Propy facilitated a transaction in which a French buyer bought a property using Ethereum. The sale was a cross-border transaction between a French buyer and a Spanish seller and shows how the use of the crypt in long-distance purchases could be explored more in the future, especially beyond the borders.
Blockchain to reduce marketing costs
In America, where real estate is a big business, commission alone can be paralyzing. It is therefore not surprising that the new Deedcoin startup drew attention to its slogan "Save 5% in commission by selling a house". They promise to cut the standard 6% cash commission to only 1%, if you pay the rest in Deedcoin, 50 to be precise. However, there is substantial savings to be made, and not just in the United States.
European countries also have high percentages of commissions such as Italy (5%), Germany (4%), Sweden (1.5%) and the United Kingdom (1.5%) that are ready for a Interruption of Deedcoin according to the whitepaper of the company. And it also works for buyers.
Deedcoin's business model depends on reducing customer acquisition and marketing costs for their partner agents. By screening high quality agents and limiting the number of agents operating in any market, Deedcoin ensures that partner agents do not have to compete with each other and attract customers through the Deedcoin website, where customers can find and contact agents in your area. Because these agents do not need to spend time or money on marketing or acquiring customers, they can close more deals in the year and transfer savings to customers by accepting smaller fees in cash. Deedcoin's marketing strategies tie these benefits to their brand.
Deedcoin's CEO Matt Herrick said, "For the CMOs, succeeding in one of these three industries – real estate, marketing or blockchain – requires you to stay open to new ways of thinking – it's unpredictable where the real estate blockchain will end up. marketing, but it is likely that we will continue to see new ideas for the intersection of all three industries in the future and the creation of interesting and innovative branding strategies to accompany them. "
Real estate, blockchain and compliance
The growing profile of cryptocurrency will likely lead to greater interest from regulators who will try not to become a way for illegal transactions to circumvent current controls that are in place for traditional transfer procedures. The US Securities and Exchange Commission has held that many cryptocurrency securities, which are subject to strict regulation. SEC statements have created ambiguities (and nervous jitters!) Among US token vendors.
Concerned about Brexit and other scenarios EU regulators have not made similar claims about the status of encryption titles within their jurisdictions, generating sighs of relief and persistent uncertainty for blockchain innovators without a & # 39; clear idea of the regulatory landscape that may need to be explored in another five or ten years.
Recently Aassio spoke about the use of blockchain in the real estate sector: "Blockchain is able to manage anything, ensuring that the title deeds are authentic to allow ownership of the properties.There may be up to ten people involved in any real estate transaction, and this is far too many to have any kind of timeliness or ease for both the buyer and the seller.With the advent of the blockchain, legally binding smart contracts replace paper ones and make save time and money and trees Instead of repeatedly calling the bank or another intermediary to see if the transaction payments have been processed, blockchain provides automated payments and cash flow monitoring.The monitoring of the processes in real time can show exactly the phase of the transaction and can also facilitate cross-border transactions and conv ersion of multiple currencies. "
The result is that while slow growth, blockchain could create growth in the real estate market, while at the same time promoting transparency and low costs – a real turning point. And while some CMOs can rely on Crypto as a "novelty" hookup, they should think again. As the blockchain becomes mainstream, consumers will become better at separating precious innovation from novelty while blockchain innovation continues to make giant strides
