When we talk about innovation we must relate to the needs of the present, but thinking about the future. It is no longer a secret that digitalization has begun to integrate into more and more economic branches, providing businesses and institutions with the necessary support for the best possible development of their business. At the same time, areas such as real estate seem to be catching up or even declining in terms of prices and number of transactions. It is easy to understand that the pandemic is an important factor in this whole equation, but it is certainly not the only one. Many people working in real estate are not open to evolution and innovation, thus remaining stuck in a bubble that they see as the recipe for success that has gone so many years flawlessly.
How can smart contracts revolutionize the entire real estate industry?
In the first phase, we can focus on promotion methods. Pictures, both normal and 360-degree, or even videos have long been obsolete. People want to be as involved as possible in the process of purchasing a property. The details are what always make the difference, and in the category of details we can include the attention given to the client, the freedom to choose, safety both medically and financially, transparency or involvement of both parties. All these details are almost impossible to follow with the help of traditional methods of real estate. You can no longer persuade people to buy just from pictures, and physical viewing has started to be increasingly avoided. In this context, we can discuss the solutions that technology brings. In order to save customers time, but also to provide them with the necessary dose of security, three-dimensional virtual tours should be the main element on which the strategy of promoting and selling an apartment is built. It is an asset from any point of view. It offers security and involves the customer giving him freedom of movement and importance, details that can certainly influence his purchase decision.
If the promotion strategy was successful and the purchase decision is a positive one, all that remains is to complete the transaction. Again, traditional trading methods have begun to be outdated, with several shortcomings being reported. The terms of the agreement can be unclear and interpretable, the transfer process is risky and stressful, the seller is reluctant to transfer the property before receiving funds, and the buyer is afraid to send money before receiving the property, notaries ensuring the agreement and security for a fee. The age of digitalization has brought a solution that tries to solve, at least partially, for the time being, all these problems. The solution is smart contracts. This innovative type of contract uses blockchain technology, is written in lines of code, and is activated at a specific time agreed between the seller and the buyer. They come to solve the problems of security and safety, the delays, and the ambiguity of a classic sale-purchase contract. In addition to these benefits, smart contracts are even more economical, eliminating the third party involved in the transaction, who may be a notary. Moreover, once such a contract is launched, it can no longer be altered, modified, or canceled, and both parties have the security to complete the transaction according to the established terms and conditions.
So technology is not just a tool that can make real estate work easier. If we look to the future, it should be part of the norm and become a pillar on which to build new ways of providing services to consumers.