BlockChain Technology – REAL ESTATE
Introduction
In the recent years, there has been an increasing interest in the Blockchain tech- nology. The Blockchain is a novel disruptive technology based on cryptography. It has been known of the work of Nakamoto [1] in 2008 who showed how this technology can become the core component to support transactions of the digi- tal currency (bitcoin) [2]. With the introduction of Blockchain, many fields such as finance, accounting, and real estate will receive a positive impact using the benefits of this technology. One area in which blockchain technology could play a vital role is real estate and smart cities. Globally, real estate is undergoing a major evolution and transformation to- wards smart cities. Smart cities are being developed and a plethora of network, services, and transactions are integrated into the city planning initially and daily use. It is anticipated that the evolution of technology, not only improves life, for example for tenants or office workers, but also enhances building performance and sustainable energy.
Blockchain—Risks and Opportunities
In a traditional real estate sale, all financial transactions are dealt with at closing. An online auction has fixed costs, making it potentially more expensive than a traditional transaction using a real estate agent. And the fees will apply whether the property is sold or not. The pre-auction phase can lead to an unexpected rush of people curious about the property. A seller is contractually obligated to allow any interested party to view the premises and to make the property accessible to any surveyor who wants to value it for a client. This can turn into heavy traffic in the weeks before the auction. Any online monetary transaction comes with risk. Even the most secure online marketplace is prone to the types of fraud that run rampant on the Internet. A buyer can win a bid, pay and find himself on the bad end of a phony sale. It’s not unusual for those with ill intent to use these venues to grab some big property sales and then disappear. A lot of sellers don’t take note of the timeline they have to get off the property once the sale is complete. It can be as little as 28 days after the auction. This doesn’t leave much time for relocation. A property’s value is determined by the market, and a seller can decide the minimum price on the property. With an auction, the property’s value is based on the highest offer—if you find a buyer at all—and the seller is stuck with that price. A reserve price can be set, but that only minimizes financial risk, not eliminate it. The only way to ensure maximized value for any property is through a traditional real estate transaction.
Case study
In this report, we focus on the disruption that every industry in today’s digital economy is facing today due to the emergence of blockchain technology. Blockchain technology has potential to become the new engine of growth in digital economy where we are increasingly using Internet to conduct digital commerce and share our personal data and life events.
There are tremendous opportunities in this space and the revolution in this space has just begun. In this report we focus on few key applications of Blockchain technology in the area of Notary, Insurance, private securities and few other interesting non-financial applications. We begin by first describing some history and the technology itself.
How does it work?
We explain the concept of the blockchain by explaining how Bitcoin works since it is intrinsically linked to the Bitcoin. However, the blockchain technology is applicable to any digital asset transaction exchanged online.
Problems Identified
Most developers, until recently have been using the offline medium for marketing. Developing from a large offline presence to online lead generation has its implications. Most real estate Developers do not know where to start the digital journey. Transitioning from generating sales via the traditional methods of cold calling to intensive integrated marketing campaigns, The Biggest Challenge Real Estate Developers’ Face In Mumbai is determining what Digital Business Strategy guarantees a boost in high ROI?
Another key challenge faced by many property developers is the fact that amid the fast-paced digital shift, how does one choose the right digital channels or Online Advertising Strategy to drive toward the best quality lead that contributes to increasing their sales? The real estate industry is forming a shift in the space and like every other competitor most real estate players do not clearly define the boundaries of what makes a good marketing strategy.
Solutions Provided
In digital marketing, Real Estate in Digital Marketing terms means lead generation and this means implementing The Latest Digital Marketing Trends to capture that valuable lead that matters to your business. Effectively understanding which platform works to drive those very valuable leads is a strategic process which requires deep in-depth knowledge of gaining higher conversion rates that in turn Add Higher ROI To Your Business. This can vary right from understanding the campaigns to the various targeting options to driving the right audiences through a filtered lens to quantify which lead will ultimately have a higher impact to convertibility.
This is exactly what we do for our real estate clients: The Results What did we do that was different?
Optimized Landing Pages
Yes, you heard that right! In Real Estate, Having An Effective Landing Page Is The Key that opens the door to a variety of potential leads. Having a static landing page that captures the basic information like name, number and Email isn’t enough. Driving the leads to a call to action ensures that you grab their attention and ensure that the purpose of running all your ad campaigns is put to maximum use by getting them onto your landing page. The landing page has to be highly optimized to ensure:
- The landing page visitor is kept captivated by only key product information
- The landing page specifies the project details and invokes curiosity to find out more details
- There is no escape other than filling out the form so the chances of the lead bouncing off your page is minimal.
After all, optimizing the landing page is the only way to determine how those higher but better quality leads are driven!
Market Competition
Real estate professionals are changing the way they do business: offering potential buyers the chance to view detailed property listings online, using websites to gather leads on potential customers, and using the Internet to match buyers and sellers. Some are changing the “menu” of services they're offering. More and more, consumers can choose among real estate professionals who do business on a “fee per service” basis and others who provide the
full complement of services. Because buying a home is the single most important purchase many consumers will make, the Federal Trade Commission has enforced antitrust rules in the real estate business to make sure that increased competition continues to lead to more choices, better prices and stepped-up services for buyers and sellers. For instance, the Commission challenged a number of restrictive rules adopted by Multiple Listing Services (MLS)
to keep low-cost and discount brokers off MLS listings and popular websites listing homes for sale.
Future Trends
Global megatrends will change the real estate landscape considerably over the next six years and beyond. While many of the trends are already evident, there is a natural tendency to underestimate how much the real estate world will have changed by 2020.
The changing landscape will have major implications for real estate investment and development. It will increase the size of the asset pool, yet change the nature of investment opportunities. Real estate organizations will need to adapt early to survive and prosper.
