By Megan Craig
The future is digital. And soon, many real estate transactions will be, too—at least according to some experts in cryptocurrency and blockchain technology.
REALTORS® have been talking for years about how the blockchain technology central to Bitcoin and other cryptocurrencies could revolutionize the way real estate transactions are completed.
A new certification through RRC, “Cryptocurrency, Blockchain, DeFi & NFTs,” will give CRS designees the opportunity to learn the fundamentals of cryptocurrency, non-fungible tokens, smart contracts, blockchain transactions, investing in on-chain technologies and, most importantly, advising their own clients about using the technology in real estate transactions.
Breaking down blockchain
Kathleen Ryan, CRS, with RLAH Real Estate @properties in the Washington, D.C., area, is a former senior engineer, so when she learned about decentralized currency, she was immediately drawn to the possibilities. After years of classes and securing her own crypto investments, Ryan is one of several CRSs creating the crypto-focused certification.
Attendees will start with the basics, since many people still don’t know much about blockchain or cryptocurrency, Ryan said.
“What we don’t want to happen is buyers or sellers coming to you and saying, ‘I have Bitcoin,’ and your first question is, ‘What is Bitcoin?’ That’s not going to work,” Ryan says. “You have to be ready and prepared.” This certification course will help members do just that, she says.
The initial e-learning opportunity will introduce basic concepts around crypto and decentralized finance, then focus on how crypto is being used in real estate now and how it’s likely to be used in the future. Experts will also cover advising clients through crypto transactions and marketing your expertise in crypto to the right potential clients.
That information will be broken down into terms even someone with no crypto knowledge will understand, says Andrew Daniels, a REALTOR® with RE/MAX Alliance Group near Tampa Bay, Florida. Attendees will learn the lingo associated with these specialized transactions—DeFi, Web3, DEX, NFT, hashing, mining, node—and understand how those elements of blockchain fit into the real estate landscape.
“At the introductory level, it is a hard concept for people to understand, so we’re going to take it bit by bit,” says Daniels, who is also helping to craft the new CRS certification.
The second e-learning session will offer information on crypto real estate investing, including how to make investments in the space and decide whether a crypto investment is the right choice.
Finally, attendees are expected to learn how crypto fits into the National Association of REALTORS’® Code of Ethics and about potential legal implications of using blockchain technology in real estate transactions.
The future is now
The certification comes at a time when blockchain transactions are already becoming more common in the real estate market. In 2017, an Austin, Texas, home closed using only Bitcoin, and in 2021, the most expensive penthouse in Miami Beach sold for $22.5 million in an entirely blockchain-dependent deal. But that’s just the tip of the iceberg, Daniels says.
Earlier this year, Redfin reported that nearly 12% of first-time homebuyers surveyed said selling cryptocurrency contributed to their home purchase, up from only 5% in 2019.
“There are more and more clients interested in this space, so it’s a place to go for real estate agents,” Ryan says. “So, if you can be on the edge of technology—maybe I’ll even say, a futurist—that’s critical, because both you and your clients benefit.”
It’s not just about the actual currency, though. Blockchain captures all parts of transactions, from digital money to smart contracts and other documents. It will allow more people to make real estate investments and will also turn real estate into more of a “liquid asset”—an asset that can be purchased or sold quickly, with completely digital paperwork, at less cost and without having to wire any money, Daniels says.
Ryan says she can envision a future when many real estate agents live on their laptops, selling physical real estate or in the metaverse, using all digital documents and crypto funds.
It’s only a matter of time before this knowledge becomes less optional and more vital to agents’ everyday business, Daniels says. If you plan on staying in the real estate industry, then you need to understand the basics of cryptocurrency and blockchain. “It’s already being used heavily, so if you don’t want to learn it, I would say you should probably retire in the next five years,” Daniels says.
For more on the Council’s numerous certifications, visit CRS.com/learn/certificates.
Photo: iStock.com/peshkov
