Opportunity:“Real Estate industry adopting block chain technology”
The purchase of “Real Estate” is the largest purchase of ones life and it comes down to one word…. ‘Trust’. The client needs to have trust in the title of the house. The client needs to have trust in the law, and most importantly trust in their realtor. Block chain technology can help solve all these problems.
The who: The people affected are the clients, title company, and realtors.
The what: To make buying and selling real estate simple and cheap.
The why: The real estate market relies on law and trust.
Testing the Who?
Real estate is multitrillion-dollar industry and affects all types of people. Future homeowners put trust into the process of buying and selling a home.
https://techcrunch.com/2016/02/06/3-ways-that-blockchain-will-change-the-real-estate-market/
Testing the what?
Block chain technology will take away the need for trust in your realtor, or even your title company. With the adoption of block chain, buyers and sellers can use “smart contracts” to have cryptographic contracts.
Testing the why?
Every property that is bought or sold uses a contract. With block chain technology clients can have their signed contract stored on the block chain. Also auction sites like Zillow can be law abiding if using “smart contracts”. Imagine getting rid of realtors.
Interview #1
For my first interview I decided to interview a client that was buying a house. They currently have a realtor and this is their first time purchasing a house. They are using Zillow to help the realtor find a property, and are very worried about the process.
Interview #2
After talking to the clients purchasing their first home I decided to call up the realtor that was helping them. I spoke to her about block chain technology and how it can help her industry grow. She was very curious and wasn’t sure if it would help or hurt her.
Interview #3
For my third interview I spoke to my neighbor who is in the process of selling his home. He is trying to sell it as a FSBO (For Sale Buy Owner). I spoke to him about block chain changing the real estate industry and he was hooked about the idea. He is someone that believes he shouldn’t be “forced” to pay for a service if he could do it him self.
Interview #4
Interview number four was with a real estate broker. This broker has a firm that has 12 realtors that hang their licenses under his branch. Broker Jones time is precious so he was happy to embrace block chain. He also said that a big problem with agents is their record keeping. Block chain can hopefully help this problem.
Interview #5
For my last interview I spoke to an associate at Title One Insurance. He was the first person I interviewed that was opposed to block chain. He believes that the title company already does what block chain will do for consumers. He was not opened minded to hear differently.
Given your Interviews, what do you know about the opportunity that you didn’t before?
-Before conducting this research I only thought the real estate market consisted of people only wanting to work with realtors. I discovered a market of people that want to buy property from the convenience of the Internet. I also discovered that the real estate industry has a big problem with fraud and bad record keeping.
