The Rules Have Changed
AUSTIN, TEXAS | The world of real estate has changed immeasurably in recent years. Property professionals have had to compete with online agency innovators, boom and bust cycles have been more like bust and bust, and agents themselves have discovered just how insecure their job security really is. However, the most significant change of all may well have gone unnoticed by most people.
What’s in a name? Facebook’s name change to Meta is likely to have been ignored by many as a branding matter, but its ramifications should have shaken the real estate world to its core as it signified a course change. Now one of the world’s most influential businesses has made a multibillion-dollar statement ‘the Metaverse is here’. Suddenly a wholly digital universe, that’s been slowly growing in significance for many years, has become so much more real and influential in the world we live in.
“ A whole new range of possibilities has opened up with the potential to break down the barriers of property investment. “
A whole new range of possibilities has opened up with the potential to break down the barriers of property investment — transaction size, liquidity, diversification and access to insights to make informed investment decisions. A foghorn should have been sounding in the ears of every real estate agent at that moment with the message: “Blink and you’ll be left behind”.
Is this the beginning of the end for traditional real estate businesses? Is there a way agents can evolve to survive? Or are they destined for a slow and unceremonial demise?
RealChain looks at the most important issues facing real estate agents and industry professionals and puts them into perspective. For each topic, we assess the current landscape, share our view on what will likely come next and offer our thoughts on how you can turn the situation to your advantage.
The Top 3 Challenges Real Estate Agents Will Increasingly Face As The Rules Change Around Them
1. The Job Security Problem
Let’s face it, being a real estate agent has never been a particularly secure profession. You’re sometimes just a few bad months away from your last paycheck. With many global markets at decade-low levels of transaction volume and Covid-19 devastating demand, the job security problem is now more pronounced than ever.
One of the biggest challenges agents face today is that they’re working in a shrinking market, and they may not even see it. Traditional property investors are already increasingly turning to digital property and other NFT investments in the metaverse. And, as blockchain technology is adopted by the real estate industry as a faster, cheaper way of transferring ownership, real estate attorneys, title companies, and real estate agents will be the ones to lose out.
2. The Untapped Resource Problem
You’re great at your job, you know your market inside and out and your property wisdom has helped literally thousands of people make more profitable buying and selling decisions… so, why aren’t real estate professionals being rewarded with a larger share of the profits? It seems fundamentally unfair that most real estate agents are working furiously to pour their intellect, creativity, and years of experience into helping others become wealthier.
Unfortunately, there is currently a disconnect between real estate industry professionals and the global market of investors who may well be prepared to pay for the knowledge these agents have. Real estate agents with expert local knowledge could help investors make more informed decisions, but without a community to connect them, both sides are the poorer for it.
3. The Small Investor Problem
As a real estate agent, if you do wish to leverage your market wisdom by investing in property yourself, you’ll likely hit a rather significant barrier as most of the best opportunities require large sums of cash. Buying property, flipping homes, renovations and managing properties are huge budget items that many agents and small investors simply can not afford. The sheer amount of money needed to buy into the market simply excludes them from ever getting started.
One solution would be to invest in a less expensive market — there are many across the world. For example, a real estate agent in Austin, Texas, might find it affordable to invest in a property in Pontypridd in Wales. But how would the agent connect with the people who know that market best? There’s just no easy way.
The Road Ahead is Full of Opportunity… for Some
The metaverse offers opportunities that have never existed before. Opportunities for estate agents and investors that will see some win big while others lose out.
“ Some have already begun to push these new boundaries. “
You might expect gaming and entertainment luminaries such as Atari and Snoop Dogg to be trailblazers in this new world, but what about leading firms, such as PwC, HSBC and JP Morgan? They are just a few of hundreds of brands to reportedly be already staking their claim on land in the metaverse through the purchase of plot-sized NFTs — investments in digital assets, supported by the authentication of blockchain, that represent ownership in the metaverse.
For those who are prepared to join them, this may be a time to ride the wave of popularity before you get left behind. Some estimate the digital landrush to be worth more than a trillion dollars, but with the growth of this market likely to mirror real-world real estate tendencies, it could be much higher. Tiny NFT land plots that not so long ago might have been trading for next to nothing are now being sold for tens of thousands. Great news for real estate agents who have the foresight to get involved in this new marketplace.
What we expect to see in 2023 and beyond
” Everything that can be tokenized will be tokenized. “
- Transfer of real estate ownership will increasingly utilize blockchain technology for a more secure, faster, more liquid, more transparent sales process. New possibilities like fractional ownership of property will develop. Overall, blockchain recording will cut out many of the middle-men in the process, including traditional real estate brokers, agents, attorneys and title insurance companies who are left behind in the Web3 revolution. Will you be part of this change?
- Everything that can be tokenized will be tokenized. Real estate is no exception, in fact, many have already started to work on models for property tokenization that will be globally accepted en masse as the way forward for physical property ownership transfer.
- New business models and methods are emerging rapidly thanks to limitless open innovation, borderless global communities, meritocratic tools and the capabilities of Web3. The winners will be those who realize the importance of a multi-disciplinary approach to combining the millennia-old business models of real estate with the technology-driven economy of the 21st century.
Real estate agents who fall behind will risk:
- A decreasing cut of a shrinking pie as investors and property owners choose a simpler, faster option;
- The market will see a loss of jobs and income as investors migrate to Web3 assets and buyers and sellers start to use blockchain alternatives to traditional real estate agency professionals; and
- Much like any other market, if you’re late to the party it’s a struggle to catch up. Technological advances, client relationships and the rocketing cost of scarce NFT land plots in the metaverse put early adopter real estate agents in a far better position.
We’ve been analysing these changes to the world of real estate for some time now and we’d be pleased to share our market intelligence with you, helping you in the year ahead by making sure you do not fall behind as the real estate market changes around you.
“ Here at RealChain, we’ve been building a global community that takes traditional real estate into a whole new era. “
Early adopters will be able to join us in our real estate community with exclusive rights. You will get access to a host of properties and competitive investment opportunities.
So, come and say hello. Become a lifetime member of our Global Community by joining RealChain. This is a once-in-a-lifetime opportunity to mint a RealChain Founders Club GENESIS PASS at a price of 1.25 ETH. Make sure to secure your spot before anyone else, as there are only 500 spots, and some of them are already gone.