Meanwhile, regardless of the massive size of the market, transferring property can be tedious and cumbersome. To begin with, buying and selling property can be quite expensive: sellers traditionally pay brokerage fees related to advertising and selling the property, ranging from 3% of the sales price, up to 7%, depending on the market and the advertising requested. In addition there’s title insurance, home warranties, and escrow and closing fees, all of which add up to an additional 1-2% of the purchase price.
Buyers pay for a number of services as well, being required to cover costs for escrow companies, disclosers, inspections, and buyer’s title insurance to protect themselves from title issues. Plus buyers are sometimes required to pay fees to a broker for their services, depending on the location.
Even more than by the fees, buyers and sellers are constrained by geography. Many countries in the world require a buyer to be a citizen in order to purchase property, while it is still massively difficult to undertake a purchase in those countries, with differing laws, expectations, and levels of disclosure.
Jerking Out the Rug Through Tokenization
The real estate industry is a massive behemoth, filled with difficulties, just waiting to have technology jerk rug out from under it. With all these complexities, something has to provide a new way to control and manage transactions, freeing buyers and sellers to function bilaterally, and do so internationally.
The blockchain platform would allow sellers who are seeking to liquify a real estate asset to do so by ‘tokenizing’ that asset or fractionizing it. This is believed to produce a financial environment where real assets like homes, strip malls, and land can be bought and sold like stocks of a company.
One For All and All For One
The tokenization process presents huge benefits to both buyers and sellers.
For sellers, the process of sale will become substantially more simple: they will be able to transfer their property simply by tokenizing and selling it to an already collected pool of tokenized buyers. Also they would no longer be forced to track down a single buyer with the financial wherewithal to take down the whole sale single-handedly. A tokenized asset can be sold to a thousand lesser scale investors within a single transaction. Due to ATLANT sellers will not be forced to pay huge fees to brokerages, since they will be able to offer their property for sale directly to buyers (on a P2P basis) in fact acting as a broker.
For buyers, a tokenized purchase is far more useful, so long as the buyer is seeking to monetize the asset. They will be free to buy any portion of the asset, and to diversify a real estate portfolio anywhere in the world, without having to leave their couch.
Whether for buyers or sellers, adoption of blockchain for real estate market’s needs signals a substantial move forward.
ATLANT is offering this program through their proprietary token called the ATL. The company is hosting an Initial Coin Offering (ICO) which began almost two weeks ago, and will continue till the end of October.
ATLANT’s investors will be able to participate in buying and selling within the ecosystem receiving value as the platform grows.
Companies like ATLANT are expected to radically change the way properties are bought and sold. The use of blockchain technology is to transform the real property market into a global democratized stock market, reducing fees and freeing market participants.