Scope of Web3 in Real Estate

Web3's Real Estate Reach

September 19, 202211:46 AM

Scope of Web3 in Real Estate

The use of digital and internet-based solutions has been key to an effective PR and marketing campaign over the past two decades. Today we'll examine how Web 3.0 will affect the real estate industry's marketing. Their value as smart contracts will grow even more as we approach the beginning of Web 3.0, a major change in the history of the web. The real estate industry has seen enormous changes over the last few years, not only in the realm of strategies and methods for marketing online.

What does Web 3.0 bring to this rapidly growing industry?

The American housing market could soon be facing the next inflationary trough as home prices across the country continue to be fuelled by speculation, demand, and lavish spending, which could cause a crash. Additionally, the majority of Decentralized Finance (DeFi) serviceshomeowners are choosing to remain put due to rising rates on mortgages, resulting in the possibility of a housing shortage.

The data from the Federal National Mortgage Association, often referred to by Fannie Mae, found that 92% of homeowners believe their home is within their budget. However, the findings also show that 69% of the population, composed of tenants and homeowners, believes it's becoming hard to locate affordable housing.

Web3 and the real estate market:

Although the future of the United States housing market remains undetermined, the development of Web3 business models based on non-fungible tokens (NFTs), blockchain technology, and cryptocurrency is designed to address several issues that plague the trillion-dollar real estate market in America.

For three major reasons, Jerry Chu, CEO of the platform for tokenization Lofty AI, told Cointelegraph that while real estate is among the most effective assets for creating wealth around the world, most people don't have access to the property.

Real estate, in particular nowadays, is costly. Even if a person is able to get a mortgage, it is often not possible to pay for the down payment with the use of a lot of cash. The process of buying real estate can be a bit difficult since mortgages require approval and a title escrow procedure can take as long as 60 days. In addition, there isn't any liquidity in real estate, so sellers are likely to lose money if they decide to liquidate their property quickly.

To make real estate accessible to people of all ages, Chu decided to create an online platform that allows users to fractionally purchase properties. The platform is referred to by the name Lofty AI Chu stated that Lofty AI is built upon the Algorand blockchain and is comprised of different rental properties that investors can fractionally purchase at a cost of as low as $50. "You could think of each property as a miniature blockchain within the Algorand network. Assets, also known as unique tokens, are generated for each property on the market. The supply of tokens varies depending on the value of the properties, Chu said.

Real estate gains value only when sellers and buyers agree on a particular price. Without this connection, the real estate market would stagnate. The first time transactions took place; they were done via property brokers. However, with the advent of online applications that allow for real estate transactions, these relationships are being developed through property websites. In the post-pandemic era, approximately 782 million users have accessed the internet worldwide.

The internet has become commonplace for many users, who could be turned into potential buyers for real estate. If you need to swiftly connect to a vast pool of buyers in real estate, the Internet offers a wealth of opportunities. Additionally, Web 3 is also offering realtors the chance to work in the metaverse, the next generation of virtual real estate hosted by the internet.

Find properties with the familiar comfort of your own home

The real estate industry has evolved to become technologically advanced. An abundance of internet users is much easier and easier to connect with than physically locating buyers in the market. With the development of sophisticated real estate broker websites, owners of properties can turn web3 users into potential buyers. Real estate brokerage websites have taken the web to the forefront.

They offer detailed descriptions of the properties they represent and present the information they provide in a user-friendly and systematic manner. Every detail of the project, such as photos, locations, prices, and sizes, as well as information about the room and other details, is made available to allow you to take a complete virtual tour at home. In addition, there are a variety of trending technologies like metaverse and certain realty firms that are among the pioneers to be established in India that facilitate transactions in the digital world.

Thanks to this convenience, buyers don't have to visit each prospective site and can select properties using a specific internet search. These brokerage services are completely transparent and validate the property to give the necessary details to make an acquisition and not call each real estate agent on the market.

The rise of the metaverse and virtual reality in real estate

Web 3 provides avenues to display real estate business offerings in the metaverse. This immersive digital technology lets all stakeholders participate in the dynamic model of properties located in the metaverse. It not only aids real estate companies by allowing them to experience everyday business activities such as meeting rooms and internal meetings more vividly within the metaverse, but even customer interactions are made easier by this feature. With every business detail displayed visually on the metaverse, both the employees and the customers appreciate this latest technology.

Transparency is enhanced with a reduced risk of fraud

Websites for property brokerages provide verified listings, which minimize the chance of fraud. Brokerage services are now completely accessible on the web. Every detail about the property is placed at the fingertips of the potential buyer in advance. The potential buyer can verify and get all the information regarding the property before purchasing. The concept of trust is given a new meaning; that is, there are no hidden agendas or dubious agents are eliminated.

The trust and reliability factor are increasing exponentially as more details about property and prices are made public on internet-based portals. As more data is released, the chance of fraudulent transactions decreases. Additionally, these websites emphasise the homebuyer, which gives greater significance and importance to buyers' requirements.

A futuristic perspective

Real estate brokerages are smooth with web-based portals that present all the information about the property available to the potential buyer. In addition, it is possible to avail of the services at the convenience of your own home rather than trip over the ground. Consult our experts; business has been opened and transformed because of the competitive edge accessible through the potential within the metaverse.

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