“REAL ESTATE AGENTS WILL NOT BE REPLACED BY TECHNOLOGY…THEY WILL BE REPLACED BY AGENTS WITH TECHNOLOGY.” – Peter Williams, CEO of Deloitte Digital
The principle here is that the real estate industry is not in imminent danger of being replaced by a single technology solution – such as blockchain – that completely disintermediates the process and makes the role of the agent obsolete, but rather that the transformations in the industry will be empowered and enabled by a variety of technologies and the winners will be those agents who embrace such technologies – rather than fight it.
There is a huge need for new technologies —– to smooth out the friction and pain points in the real estate industry —— from transaction processes intrinsically linked to real estate agents (buy, sell, lease) to the recording of titles and deeds at land registry offices throughout the world.
Real Estate Industry Pain Points
- Non-interoperable and proprietary software
- Cumbersome title transfer
- Human error
- Incomplete and insecure property data
- Expensive due diligence
- Unnecessary third parties
- Slow price discovery
- Legal inconsistencies
- Illiquid assets
- High transaction costs
- Haphazard mortgage tracking
In reference to technology, the solution for agents is not to be found in the acquisition of hardware in itself but in the adoption of solutions which will largely be software solutions, applications and platforms.
A Blockchain platform offers an open-source, secure and universal protocol for:
- listing properties for sale and lease;
- appraisal and house inspections;
- transfer and registration of ownership or titles;
- recording of transactions;
- escrow services;
- and much more.
Blockchain will increasingly lead the way in providing technology education, use-cases and adoption principles for the real estate industry. However, widespread adoption will first require addressing important legal and regulatory questions which have remained too long on the backburners of real estate blockchain enthusiasts, real estate industry players and of course, governments.