A homeowner in Vermont became the first homeowner to sell her home entirely on blockchain technology. The process, from contract to title transfer, was recorded using blockchain technology, developed by a company called Propy that specializes in "property transactions secured by blockchain technology. "
(To set expectations and not get too excited, the homeowner was the owner of the company and local government officials are quick to point out that this is a long way from implementation. You can read the full story here).
It's great news for consumers. There's an extraordinary amount of inefficiency in real estate transactions, and that's in large part why we're all paying 6% in closing costs plus 6% in real estate agent fees to sell a property. It doesn’t need to cost $12,000 in fees to sell a $200,000 home and technology like Propy can be a part of changing that.
Blockchain technology has the potential to make these transactions not only more efficient, but more secure. Kristin Hauser of Futurism writes, "This makes the process more secure than sales conducted through traditional methods. A person couldn’t say they didn’t receive a payment or never signed a document, nor could they alter public records by hacking the city’s server. There’s an immutable record of every action on a virtually unhackable ledger."
It's an exciting time to be in real estate and we should all look forward to the changes ahead. Anything that makes the process of buying and selling real estate more efficient, more secure, and more affordable gets two thumbs up from me.