If you’re fresh in the commercial real estate (CRE) industry or are a seasoned veteran, you definitely know firsthand how cutthroat and utterly unforgiving this business can be. And though many of you may cringe at what I am about to say, we all know it’s true to a certain degree: when consumers think of the least trusted professions, real estate agents fall right in with Congress, telemarketers, and, sadder yet, car salespeople.
But if you think being placed in the same barrel with those personae non-gratae is bad enough, when asked to list the most trusted to least trusted professions, real estate agents ranked lower than the notorious and abominated groups such as attorneys and bankers! Though putting the real estate profession below bankers as the least trustworthy seems a bit overkill, when we examine the industry’s track record, it’s not a pretty picture. As a matter of fact, it’s not even Photoshopable at this point.
But what if I proposed a way for you, an individual who has the right not to be placed in barrels of personae non-gratae or with abominated groups, to offer consumers a reason to place you among the most trustworthy of professions, like nurses, grade school teachers, and the such? Well, that’s exactly what I’m going to do in this article.
Blockchain-Based Real Estate Rebuilds Trust.
For those who are totally lost when it comes to blockchain technology, just imagine one huge spreadsheet that has been duplicated thousands of times over across massive computer network. This “smart” network is continually updating each block in the spreadsheet as needed, keeping detailed, unchangeable, highly encrypted public records.
Another very important aspect about the blockchain is that it removes the need for a “middleman” so to speak. Take an escrow service like PayPal for instance. Though it is an online entity with thousands of employees and offices around the globe, it serves as a “middleman” for sellers and buyers.
Since people don’t trust each other, banks, loan companies, escrow services, and other financial institutions similar to them turned creating “trust” into a multibillion-dollar business. By using a decentralized distributed ledger, people feel a lot more secure than with the centralized method.
Minimizing the Use of Physical Paper Trails.
Adding this system to the real estate industry opens countless possibilities and solves numerous problems. For example, it’s widely known that the real estate industry has long been slow to adopt technology as it advances, such as continuing to use paper-based leasing applications. Traditional rental contracts should be replaced by smart contracts, offering automated conditional transactions that, as each condition is completed, one or more points of the contract are recorded as fulfilled. This not only decreases the amount of paperwork and physical energy used but it protects the leaser from unfair treatment and the landlord from legal actions.
Simplify Cash Flow Management Challenges.
Managing complex and long leasing agreements, property functions, and cash flows between the landlords, tenants, property managers, and vendors rely on onerous accounting, compliance, and cash flow management requirements. In addition to that, the blockchain allows for complete transparency throughout the entire operations, which in turn helps you build trust with your tenants.
Consumers today are expecting a lot more from businesses; they’re demanding transparency, eco-consciousness, disintermediation, as well as upfront and fair pricing. Startups focused on solving these issue already provide consumers with useful services such as free real estate property reports, agent performance tracking, track proposals, and much more. By adopting blockchain-based real estate technology, you are not only keeping up to date but also showing the consumers you are one they can trust.