Non-Fungible Tokens, or NFTs, have created the possibility of giving a digital avatar to almost everything. From art, technology, and real estate, there is hardly any field left untouched.
Recently, NFT Real Estate has transformed the real estate sector. NFT Real Estate refers to the digital tokenization of real-world Real Estate.
It means that Non-Fungible Tokens are being minted that represent real-world pieces of real estate. So, if you buy a Real Estate NFT, you’re also buying the corresponding piece of real estate.
How Does NFT Real Estate Work?
The entire framework of this lies in the Metaverse. Metaverse is the digitized version of the real world where you are assigned a digital avatar.
You can use this avatar to visit the digital version of real estate in their NFT versions. So, if you buy the digital version of real estate, you also purchase the actual real estate correspondingly.
You might think of NFT Real Estate as a new-generation toy for youngsters. However, it is much more than that. This new tool has numerous implications that are changing the entire world of real estate.
How To Buy Real Estate Through NFTs?
To buy real estate using Non-Fungible Tokens, you must buy the NFT. This purchase can be made directly from the project’s websites and applications or from secondary marketplaces like Binance NFT or Opensea.
To make this purchase, you need to have a crypto wallet and sufficient balance in terms of crypto supported by the NFT platform. Most such projects are based on the Ethereum network and need ETH to make the purchases.
Once you get ownership of the NFT, you also get ownership of the underlying real estate. It’s also advisable to do your own research (DYOR) before investing money to avoid scams.
Implications of NFT Real Estate on the Real Estate Sector
As mentioned above, Non-Fungible Tokens Real Estate has profound and revolutionary implications. It has made things easier for both buyers and sellers. Also, record keeping and the administrative process have become quicker and more secure.
Better Security and Transparency
Since the entire process of NFT trade is done on the blockchain, all the underlying data also gets stored on the blockchain. Once the data is stored on the blockchain, it cannot be deleted or changed, making it more secure and transparent.
Own in Fragments or Small Parts
Fragmental ownership or owning parts of real estate is still a new and tedious concept in the real world. Since many projects allow the trade of smaller fragments in a matter of a few fingertips, it has become easier to buy part ownership sharing the cost with multiple parties.
All you have to do is mint fragments while minting the Non-Fungible Tokens. This process works like a share market where you can buy a small part of larger stocks.
Easy Liquidation of Real Estate
Liquidating a real estate can often become daunting in case of a lack of buyers. Finding someone willing to match your asking price might take months or years.
However, you can tap into the global community and a larger pool of buyers utilizing blockchain’s connectivity. Moreover, fragmental ownership has also boosted liquidation as you don’t have to wait for someone who can pay the entire asking price.
Quick Processes and Rapid Transfer
Completing paperwork and documentation can consume a lot of time. You also have to cut through the entire red-tapism.
But you can skip this long process while buying the Non-Fungible Tokens. It just becomes a matter of a few touches on your smartphone.
Many real estate companies have started minting their Non-Fungible Tokens, reflecting their properties. By doing this, they can leverage the NFTs’ popularity for their marketing and advertising.
Moreover, by establishing virtual stores in the Metaverse and selling NFTs in the Metaverse, NFT Real Estate can pull more traction to the business.
Resource and Time Friendly
There was a time when you had to fly down to different locations to survey the real estate before buying. However, this can be quickly done using Metaverse, saving both money and time.
The virtual tours and 3D models in the Metaverse give a full preview of the real estate without being at the location physically. This especially becomes helpful when trying to buy property on foreign lands.
There are some technical challenges and the need for more fine-tuning before it can achieve its full potential. While NFT Real Estate is a new world with unchartered secrets, it’s still causing a significant impact on the real estate sector for good.