Okay, I can not help myself. I had to do a play-on-words in creating the title of this post, my first on Medium. As you may know, a software programmer’s first codebase in any language often prints out simply “Hello World”. It is a right of passage that fuels the new programmer’s desire to learn more.
After my two year exploration of real estate blockchain and artificial intelligence (AI) use cases I recently decided to take a full-time, deep dive. So, I plan to share here my thoughts, observations and opinions based on the blockchain research I am conducting. I hope to discuss meaningful information that will benefit others while helping me solidify my learning and to identify project and business opportunities where the introduction of disruptive technology in the real estate space can remove some friction from the process and improve the consumer experience.
Real estate is a very large and deep vertical. Based on my research, across Canada in 2018 there was approximately $228 Billion (CAD) worth of residential properties sold. Using a (conservative) 7% combined average transaction related fee for real estate agents, inspectors, mortgage brokers, surveyors, lawyers and others typically involved during the transaction, this meant that about $16 Billion in fees were paid by consumers. Mostly those fees are to ensure the buyer and seller are exchanging what the seller claims and believes he is selling, and so the buyer understands and gets a certain level of assurance in what she is buying. Blockchains can help automate much of this work in a transparent and trustworthy manner. This promises to not only potentially reducing fees, but create a much better consumer experience and allow those professionals involved to focus best on where they add the most value.
So, if you are interested in seeing real estate transactions conducted in a more consumer centric way, I welcome you along for the ride.
I have a thirst to always learn more, so “Hello, Real Estate, World”.