Why Investors Prefer Real Estate Tokenization Over Traditional Buying & Selling
Whether selling or buying a home, the real estate transaction process can feel confusing and overwhelming. In 2019, eighty-nine percent of home sellers purchased a home by working with a real estate agent. Based on the same study, ninety percent of buyers would again utilize their real estate agent or suggest their agent to others. For the elite who invest in real estate, they can afford assistants and brokers to streamline the buying process for them. However, for the average buyer, the real estate process can be frustrating, time-consuming, and full of back-and-forth deliberations between several parties.
The traditional real estate transaction involves three main stages. First, the acquisition is the process of gaining ownership or control of real property or an interest in it. The second step of the process is financing. As a real estate agent, negotiating the sale can be a tense and stressful time. Finally, the closing process is the final step to closing the sale, which involves a final inspection, legal paperwork, and taking the property off the market.
How tokenization is making real estate transactions faster and more secure
Technology is paving the way for new opportunities in every industry. Smart homes are geared with smart and IoT devices. Every corner of the house can be controlled electronically or remotely.
Blockchain technology has also made a different kind of impact in the real estate sector. Tokenization involves converting a physical asset into its digital counterpart, representing and acquiring its value from the underlying asset. These are considered security tokens, stored on a decentralized blockchain ledger. On the blockchain, the security tokens can represent precious metals, art pieces, company shares, commodities, and real estate property.
In real estate, tokenization refers to transacting and recording all the interactions of the property through security tokens. Every token symbolizes a fraction of ownership of the underlying property. Tokenizing a property and further keeping its data on the blockchain adds flexibility to the traditional real estate model.
Purchasing and selling real estate through traditional processes can be time-consuming, particularly for the due diligence part of the closing process. One of the main benefits of leveraging defi technology to acquire or sell real estate is the immediate transference of ownership or funds once the sale is complete. This is done through the use of smart contracts, codes created on the blockchain that performs automatically when predetermined conditions are met. They allow automated security and compliance checks, removing the need for manual processes that are expensive and time-consuming.
The concept of tokenization can be highly revolutionary for the real estate sector. Real estate tokenization holds an advanced promise to change the real estate sector. Real T is a platform that allows real estate investors the opportunity to buy and sell fractional ownership in properties. A single token can be purchased for fifty dollars, making the investment accessible to investors of almost any experience or income level. Visit their marketplace today and check out the listed properties before they sell out!