Will Blockchain change the game?
Technology has completely changed and continues to evolve the real estate industry over the past 20 years. Until the late 1990’s, the agents were the gatekeepers and you needed “a connection” to find a good home in New York City. This tightly held information was a power tool and the backbone of the industry.
Blockchain technology seems to be the hottest buzzword on the block. With the potential once again to revolutionize the real estate industry, it feels like we are waiting at the edge of our seats to see the reality of how this hyped up and anticipated technology will actually it.
Blockchain is a platform that is a transparent and open way for safe and accurate data management. It offers the potential to speed up and lessen the costs of buying and selling real estate. One example of this is in the closing process – complicated by multiple parties and prep work – can be expedited and less cumbersome. Another powerful example is with the overhaul, if not end of the title industry. Small fees like credit checks, applications, filing and reporting fees could disappear. Closings will not need prior disclosures, as the information will was transparent and clear to all throughout the entire process. Eventually making the bank loan and coop/condo board package processes much more streamlined, easier and faster.
The biggest effect it will have is the ability for more buyers and lenders to participate in the market by offering access and spurring competition. We will see big banks competing with small groups of investors providing notes through Blockchain packages. We will see foreign buyers moving money much easier, with new purchase options for them in the city, potentially for the first time ever. We will see coop boards opening up to foreign nationals in some instances as they now have much more financial transparency.
Just decades ago, Barbara Corcoran introduced co-brokering to the market and websites like Craigslist offered listings to the masses with an easily accessible data platform. This brought a great jump in values as demand grew from these new mediums. I see this happening again in new ways with values rising with new technology. It may take time for it to be integrated into practices but you can bet the game will change.
For a more in-depth look at Blockchain technology and the real estate market check out this article from Forbes I found to be insightful: