Purchasing a property, be it residential or commercial, can be one of the most stressful, time-consuming, and complicated processes you will experience. While many other industries have embraced technology and used it to simplify the way they work, until recently the real estate market was somewhat stagnant. Then in the last couple of years, a digital transformation has occurred.
Innovative solutions are being integrated throughout the sector and are greatly improving the way things work. Smart contracts, crypto, and online services are just some of the ways the housing sector has been dragged into the 21st century!
A smart contract is a self-executing contract that exists on the blockchain. It is programmed to complete a series of predefined events, executing the next step once the previous one has been completed. For example, in the house buying process, the smart contract could include each step of the process from start to finish. It would start with registering interest, then the negotiating process (putting in offers, refusals, and acceptances), putting down a deposit, submission of all documents and surveys, signatures, completion, and even the release of funds.
Conventionally, the home buying process is complex, long-winded, and involves multiple stakeholders, each of who have to complete tasks. But through the use of smart contracts, everything can be streamlined and centralized in one place. Task delegation becomes automatic, and it’s easy to see who is holding up the process. The buying and closing process becomes quicker and significantly more efficient.
Online comparison services
Once upon a time, to get a mortgage you would have to visit, in person, potentially tens of mortgage brokers or providers to find the right deal. This was incredibly time-consuming and at times, frustrating for potential buyers. But now, it can all be done online. Thanks to digitalization, house hunters can get solid mortgage advice from online providers like Trussle.
They can compare mortgages, see how far their deposit will take them, and find out about terms, conditions, and other important factors. This means that homeowners are taking much more informed decisions when it comes to their property and finances. Furthermore, the whole process can be conducted with just a few clicks instead of having to book appointments, go to appointments, discuss, and repeat.
Buying a home includes making one, or two large transfers. This typically comprises the deposit, and then the balance when the sale is at the completion stage. Such transfers can incur heavy costs from banks and can be held up due to cumbersome due diligence processes or banks being closed. If it’s a cross-border transfer, it can take even longer and become even more expensive.
Thankfully, cryptocurrency payments are becoming more popular in real estate. Transactions are very quick and typically incur costs that are way less than what banks charge. The transfer is done directly without the need for an intermediary and as it’s on the blockchain, it’s immutable and secure. This method of purchasing is becoming more popular as buyers seek to save money on the middle man.
These are just a couple of examples of how the market is adapting. There are also technologies like AI, VR, and AR which are threatening to completely change the way house sales are conducted, but that is the topic of another article!