Blockchain has almost literally transformed the faces of a wide range of industries. And the real estate sector is definitely one of them, gaining maximum benefits from this resourceful technology. Real estate as we all know, is an ever growing, active industry. Real estate tokenization, based on Blockchain technology influences the real estate sector in many ways, mainly, increasing the speed of transactions, improving efficiency, and transparency for the users.
There are already some evident changes in the real estate sphere, from the adoption of blockchain. Many real estate companies have started using Bitcoin as their medium of payment, which helps with speedy transactions, with lower costs. Blockchain is expected to take over the industry completely in the near future.
The key characteristic of Blockchain technology is its decentralized, peer-to-peer nature. Here are some other significant ways through which blockchain benefits the real estate sector.
Elimination of middlemen
As mentioned above, tokenized platforms along with blockchain allows users to directly exchange peer-to-peer between themselves without involvement from a third party. Whereas, in the traditional real estate system, there is too much involvement from third parties such as brokers, agents etc.
You can pocket a lot of savings from conducting transactions through blockchain. As blockchain removes the involvement of middlemen, you don’t have to pay any brokerage or commission fees and therefore, conduct cost-effective, as well as risk-free transactions. Each transaction is thoroughly verified and validated and hence, they are completely secure.
Reduces chances of fraudulent
Real estate is often prone to fraudulent activities such as people trying to grab a property with fake documents, claiming the ownership of the property. But with blockchain, it is not possible. Blockchain makes sure of full proof evidence of buying and selling details of the property with evidence of ownership and transaction histories etc.
Liquidity is a crucial factor for a real estate business. People most often find hardships with buying and selling properties because of illiquidity. But, blockchain based real estate tokenized platforms come with high-volume liquidity, that helps customers with efficient buying and selling, and also quick conversion of property values into cash.
Most people buy their real estate properties based on loan applications. Usually it takes a really long time for loans to process and for the amount to get sanctioned. But, blockchain makes this process easier, by the use of smart contracts. Smart contracts conducts automated transactions with the agreement of involved parties, and makes the process quicker, easier, smoother.
To sum up, blockchain makes real estate business more efficient, secure and also reduces a lot of time and money. It is definitely a lucrative investment and will take the real estate business to the next phase. If you want to revolutionize your business, conduct extensive research, and hire a real estate tokenization company soonest.