Why Real Estate Brokers Should Embrace NFTs

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NFTs and web3 will modernize real estate in ways more profound than the internet and social media.  Aside from lack of understanding (which we’re trying to change), there’s no reason real estate brokers shouldn’t be creating NFTs for all their clients and listings.  The benefits extend to many aspects of your business and the cost is negligible compared to many of your existing services.  We are in the early days of adoption and creation of new products. 

 

Marketing

  • Opens up your listings to the global crypto community of potential buyers 

    • High net worth individuals

  • Listing is added to multiple marketplaces as soon as NFT is created

    • Like MLS, but on blockchain

    • See exhibit A

    • Added to existing NFT marketplace (OpenSea, Rarible, etc.)

    • Potentially automatically added to future marketplaces (Fractal, others)

  • Google/SEO – more visibility on internet results (see Exhibit B)

  • Low cost/free and easy to create an NFT

    • Similar process to creating any property listing

 

Improve Your Current Process:  NFTs are complementary to how you currently operate.  They don’t take anything away, but simply add more options.

 

  • Enables crypto as a form of payment, in addition to fiat

  • Enables auctions

    • Auction and bidding built into NFT technology

    • No longer need to manage bid process manually

    • Full visibility from all parties

  • Commission paid automatically on every transaction

    • Set custom commissions

  • Create a listing once, that stays with the property forever

    • No need to recreate a property listing every time

 

Broker the Property, Not The Transaction:  NFTs allow you to become the “exclusive” broker for a property, potentially letting you earn on every transaction.  Instead of being paid just for buying or selling the property, also earn every time the property rents or is put onto Airbnb.  

 

  • Broaden your service to your clients

    • You can reuse the same NFT(s) for sales, leasing and rentals

  • You have a reason to revisit all past clients 

    • All your past listings can be relisted as NFTs

    • NFTs allow real estate to act like stocks = it’s always on the market 

      • There’s always a price an owner will sell or rent

  • Grow your book

    • New buyer gets NFT, but needs someone who can understand how to sell

 

Invest in the future:  NFTs (web3) today = very similar to the early days of the internet (web1) and social media (web2).  Early adopters earned free/loyal customers while late adopters paid 

  • Crypto will play a huge role in real estate going forward

    • Ryan Serhant believes 50% of transactions will be in crypto (link)

  • New products being created

    • NFT-backed mortgages (Snaploans, Milo)

    • NFT-back real estate funds

    • Fractionalization

      • Timeshare

      • Short term rental

  • You are at risk of being disintermediated

    • If you don’t create the NFT, the next broker or buyer may

    • NFT gives individuals the power of MLS

  • Marketing for yourself and your brokerage

    • Attract new clients with being “crypto-enabled”

Exhibit A – Created once, listed everywhere.  This property was originally listed on a real estate listing site.  An NFT was created with the same information and instantly listed on multiple marketplaces.

Exhibit B – SEO on Google.  NFT listing on OpenSea is #7 when searching the address