Blockchain is the next frontier of the real estate market, making inroads at a fast clip. The use of the technology will make it possible to have transparent transactions that sellers and buyers will benefit from. From real-time ledgers to full-on shared databases and processes, blockchain throws the doors wide open with possibilities in real estate. However, does it come at a cost?
Some agents think it might, while others are embracing it with abandon. Yet, there is much to learn and consider before adopting blockchain into your business processes.
Nine members of Forbes Real Estate Council share the thing that everyone in their profession needs to know in order to safely and efficiently begin adopting blockchain or the tools it enables. Here is what they had to say:
1. Technology Will Enhance Security And Transparency
Although a lot of the commentary around blockchain and cryptocurrency red-flags security concerns, the truth is, blockchain is going to allow for added security and transparency that commercial real estate has never seen. The best approach to adopting blockchain practices is to find companies that offer solutions that are relevant to you. Don’t gamble on something you don’t understand. – Joshua Fraser,Data Nerds
2. Blockchain Will Disrupt The Real Estate Title Industry
What if you could irrefutably determine who previously owned a property, record with absolute certainty who the new owner is after it sells and reference the blockchain at any time to verify all previous owners? Even the combination or splitting of parcels would be easy to record with blockchain technology, which is not the case with the PIN system. – Marc Rutzen,Enodo Inc
3. Relevant Information Is Available On Specific Sites
Blockchain is mysterious and risky to many people who associate it with volatile cryptocurrencies. There are companies and professionals who have already conducted real estate transactions on blockchain platforms. If you don’t know title or mortgage companies or real estate agents who have experience or are willing to learn about blockchain, reach out to those who do. – Brion Crum, Caliber:The Wealth Development Company
4. Education And State Approval Will Help Adoption
Blockchain will absolutely change the way we conduct real estate transactions, with a way to record titles and pay for purchases with ease and fairly quickly. I think we have a long way to go on regulating what exactly makes blockchain legal. Once we establish a governing body to oversee the legalities, then we have to educate real estate agents and have each state’s real estate organizations endorse blockchain as well. –Angela Yaun, Day Realty Group
– Things To Keep In Mind About Blockchain In Real Estate