The cryptocurrency and blockchain worlds change exponentially faster than the real estate industry. Realtors are infamously known as ‘slow adaptors’ to changes in technology. Not too long ago, realtors were sending ginormous paper contracts via snail mail to people trying to sell a property in order for them to sign. That’s the complete opposite way to quickly sell a home for someone. Now, times are a-changin’.
Cryptocurrency and blockchain technology are taking the real estate world by storm! The job function of a realtor is prime for disruption by innovative blockchain tools. Soon enough, you’ll be able to sell a house in minutes versus months. Will cryptocurrency put realtors out of business by disrupting the real estate industry?
Here are 3 terrifyingly striking ways that cryptocurrency will put realtors out of business and completely change real estate through blockchain technology.
Should Realtors Be Afraid of Cryptocurrency
Undoubtedly, yes. Realtors – as for any other real estate professional – should be afraid of getting lost in the sauce of stagnation. Blockchain technology is not slowing down, it’s speeding up. As a realtor, you need to keep up with the Joneses and the blockchains.
Real estate has already been massively disrupted by technology over the past decade. For example, iBuyers like Zillow and Opendoor started making offers directly to homeowners. They changed the game for realtors trying to work with home sellers and nearly cut them out. Zillow has since become more realtor-friendly (or so they’d like agents to think).
Real estate technology companies, like Reali, created a virtual touring model that allows you to tour a property on your own without an agent. They leveraged technology to add value to home buyers and sellers by making the process more streamlined. Sadly, Reali went out of business last year. Nevertheless, the blockchain will change real estate by making the process faster and easier. Realtors better buckle up for the next surge of real estate cryptocurrencies that will disrupt their entire industry.
Blockchain Will Replace Realtors
Look out, incoming blockchain technology!
The blockchain will replace realtors and how they operate in real estate markets. Woof, that sounds harsh! Let me rephrase that…
Blockchain technology will replace the modern-day realtor, forcing them to adapt or change their job. An industry like real estate is prime for disruption. Home buyers and sellers demand faster and better services throughout the real estate process because that’s what they’re accustomed to when receiving other services. The blockchain provides a faster and more secure real estate process for home buyers and sellers. If realtors don’t adapt to cryptocurrency and the blockchain, they will be replaced.
1. Home Buyers Will Submit Offers on the Blockchain
Instead of submitting an offer to buy a house on the market through a realtor, buyers will use the blockchain. The middleman – aka real estate agents – will be replaced by digital bidding systems. Home buyers will submit their offers on the blockchain. The seller will immediately receive it with no lag time.
Gone are the days of sending countless emails back and forth between the realtor, mortgage lender, title company, and so on. This will revolutionize the real estate process because it will be much fast. All contracts will be on the blockchain, meaning they are tracked in a fast manner.
2. Smart Contracts Will Replace Real Estate Agreements
When selling a house on the blockchain, smart contracts will replace real estate agreements. Your real estate agent won’t have to negotiate back and forth with different home buyers. Instead, as a home seller, you can set automatic parameters to trigger depending on the details of the offer you receive.
For example, you can set rules within the smart contract on the blockchain to deny any offers that are less than $700,000. The opportunities are endless with how much more efficient smart contracts and the blockchain will make real estate negotiations. If you’re dealing with squatters and want the buyer to take that on, put it as a contingency in your smart contract. The blockchain will handle the negotiation for you and replace the role of realtors in this scenario.
3. Home Sellers Can Sell Fractions of a Property Through NFTs
Home sellers can now convert their properties into NFTs and sell fractions of them to home buyers. This will alter the way that realtors work with home sellers. Realtors are used to helping accomplish one, grandiose sale of a property and receiving a massive commission.
Since realtors won’t be as involved once the blockchain and cryptocurrency become more mainstream, their commissions will likely be sliced up like rotten bologna. Hopefully, those diminished commissions don’t smell as bad as your roommate down the hall. I digress. Now try adding fractional property sales through NFTs on top of that. Realtor commissions will be much smaller (if anything) helping sell 1/1000th of a raw piece of land in Wyoming.
Other Ways Blockchain Will Disrupt Real Estate
You thought cryptocurrency would put realtors out of business and that’s it? Think again! The blockchain will disrupt real estate up, down, and even sideways. Grab your coffee and get ready for the changes that all real estate professionals will deal with once the blockchain is widely adopted.
1. Title Companies Will Change with Blockchain
When is the last time you ran into a title report issue? If you’re a realtor, it’s probably a lot! Title reports can take 1-2 weeks to fully run because it pulls data from countless different sources. There is specific city data, county data, historical property data, and more that title companies must find and create a report on.
Realtors then review this with their clients to make sure they understand the current state and past history of the property they’re about to purchase. The blockchain will change title companies and how they work. All historical and current data about a property will be listed live on the blockchain for anyone to view at any time.
Gone are the days of insane deed fraud. If someone dies in your family and owns a home, you will know exactly who the heirs are based on family data and the will (if there is one). Homeowners will know exactly how much they owe in liens on their property before selling.
2. Blockchain Will Disrupt Mortgage Lenders
One of the top benefits that cryptocurrency and the blockchain will provide real estate is fast, accurate data. Lenders won’t need to ‘take time finding the best rates for your mortgage’. Interest rates will be live data on the blockchain that can instantly – and automatically – accessed by smart contracts. The blockchain will ‘shop rates’ for you as a homebuyer.
Cryptocurrency Will Change Real Estate
Whether real estate professionals like it or not, cryptocurrency will change real estate. Realtors will be put out of business by the blockchain if they do not adapt. Blockchain technology will drastically improve every process within real estate, including buying a house, selling a house, and taking out a mortgage. Real estate will move faster than ever before. Be prepared for how cryptocurrency and the blockchain will change real estate and how realtors operate.