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How blockchain can optimize the real estate market

Story Highlights

  • Now real estate market does not simplify the life of either the seller or the buyer

  • Blockchain can radically change the real estate market

How to make real estate market more convenient

It is no secret that many dreams of owning their own home. At the same time, almost every potential landlord, who has decided to realize his dream, is looking for the perfect home in an ideal location, with perfect neighbors. As a rule, they gaze at the dream houses, imagining how they would decorate the walls, how the furniture in the living room will look, and how beautiful the whole family will live in this house.

Blockchain can help

If you intend to buy a house that needs serious repairs, then you can let go of the imagination even more (in some houses it may even be necessary). In this case, you can think not only about what color to repaint the walls and what kind of decor to put on them, but also to consider options for more radical changes. For example, after you demolish several walls and tear off the old floor covering, replace some materials, add something in the bathroom and do a couple of new windows, you will have a practically new house.

However, it has long been noticed that as soon as an almost ideal variant is found, then the inspiration of the future homeowner begins to subside. In fact, he may even fall into a state of stress and frustration. It may be difficult to choose one option, this in itself causes stress, but after the proposal is accepted, the fuss will begin with documents and formalities. It is often necessary for the buyer to obtain approval from the lender and make sure that the house will go to him as he was at the time of the inspection. In addition, it is important that the house was properly assessed, you should also make sure that all documents are ready for closing the transaction and sent to the correct address. But this is not the end.

Even after all this, it may become clear that it is necessary to pay an additional fee or increase the commission of the realtor; or a mortgage loan needs to be adjusted due to an incorrect assessment; or because of someone else’s mistake, you will have to pay even more money than the buyer expected. It could well drive almost anyone crazy. Anyone who has purchased a house or other real estate is likely to agree that such a model does not simplify the process of buying and selling real estate, only complicating the lives of both sellers and buyers. But it seems that the industry is definitely changing for the better thanks to technology, which, as it may seem, is very far from the real estate market.

Blockchain technology is a popular topic that is usually discussed in the context of cryptocurrency, as a rule, this is Bitcoin – the first cryptocurrency in the world. Despite the fact that some people continue to perceive cryptocurrencies and blockchains more as a subject of technical discussions, rather than an objective reality, they are being actively introduced in various sectors of the economy and real estate is one of them. The blockchain is essentially a decentralized digital registry that reliably stores all transaction data recorded in chronological order. This data is available for viewing to any person, but after recording it can no longer be changed. This makes the blockchain technology reliable and fairly transparent. It may have various uses, including performing contractual functions, ensuring compliance with the conditions agreed upon by the parties to the transaction.

One of the ways in which the blockchain can radically change the real estate market is the method of information exchange. At present, agents, contracts, etc. are monitored using a real estate database (Multiple Listing Service Service, MLS), but not everyone can access it, and sometimes the system fails. Blockchain technologies will improve MLS by providing direct data exchange. They can also help reduce the immensely indecent commissions.

Ensuring clarity in the matter of ownership and transparency of operations will also allow the blockchain to change the modern real estate market. As already noted, the current scheme of the real estate market clearly does not simplify the life of either the seller or the buyer. This state of affairs gives a lot of room to improve the industry, and it looks like blockchain technology will shake up the real estate market. It is only a matter of time.

Mur Kvantaliani

MUR KVANTALIANI Mur Kvantaliani is an International researcher, scholar and journalist. His interests focus on geopolitics, economics, renewable energy and new technologies. Mur holds Masters degrees in English and German literature. He has lived and worked in the United States and Germany where he developed his career as a journalist and creative writer.

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