HOM NFT Feature 4: Buy & Sell
Buy-Sell Utility: Using HOM-NFTs to purchase and liquidate properties
Buying and Selling properties using the HOM-NFT is akin to buying and selling crypto than traditional real estate transactions. The main difference from a crypto trading standpoint is the addition of an identity and title (as outlined above), and in-person delivery of the physical keys and occupancy of the property, in addition to the transmission of the HOM-NFT to a wallet. . Since all of the meta-data around the property is housed within the HOM-NFT, the “dance of deception” that is typically associated with real estate transactions is pointless. Radical transparency is built into the blockchain so the buyer has an accurate and clear understanding of the real estate property.
When selling a HOM-NFT, the owner sets the price of theirin NFT in HOM, based on the data from the third- party validator which will show real time appraised property value and rental valuation data from comparable properties in the same geographic area (market values) the marketplace. The owner then offers the HOM-NFT for sale, either on the HOM Protocol, an NFT marketplace such as Opensea, DEX, or theoretically, on a property listing site like Zillow, if their advertising guidelines allow. Depending on the country in which the transaction occurs, the sale may require the services of a real estate broker or an attorney.
When entering the negotiation process to purchase a HOM-NFT, the buyer must go through a KYC-AML process, in order to validate their identity. Once verified,, the prospective buyer can then place and present an offer to the seller. After the seller accepts an offer at the purchase price they deem acceptable, the buyer then purchases the HOM-NFT with their crypto asset of choice. The transaction concludes in a matter of milliseconds without the fees and prolonged hassle typically associated with real estate closings.
Another advantage of the HOM Protocol is that individuals can buy and sell HOM-NFTs fractionally. Using this system is that one person can buy the HOM-NFT or up to 1 billion people can buy fractional interests of the HOM-NFT.
Depending upon the country in which the transaction takes place, real estate agents and other real estate professionals may be involved in these fractional sales to help HOM-NFT buyers and sellers gain comfort with this new form of commerce.
When selling the property using the HOM-NFT, title is abstracted onto the blockchain where it remains held by the HOM DAO trust in the country in which the property is located, or it can be transferred directly between NFT owners. The benefit of holding the title on the blockchain, and leaving it there through successive transactions, is that it provides an immutable record of the activities, and saves a great deal of time, expense, and potentially prevents theft of title by a corrupt official in the sales transfer process. If the buyer plans on financing the property purchase, title has to be held by the DAO trust in that country, and recorded on the blockchain.
Last modified 10mo ago