With a robust economy, excellent job opportunities, and great schools, California continues to be an attractive market for real estate investments. Indeed, it is one of the real estate markets that has been seeing rapid growth over the last few decades. In large part, this is because California houses many technology companies. So, if you want to buy a house in California, we will show you how you can save on real estate fees.
Currently, you can use services, such as Zillow or Redfin, to find properties to purchase. You can run through multiple listings and contact the property owner through these services. Your typical fee on a house purchase is 6%. Most likely, both the seller and the buyer pay the commission toward the selling agent and the buying agent. On a $1,000,000 house, this can be a fee of $60,000.
In contrast to the above services, companies like Propy are coming with innovative ways to use blockchain infrastructure for the real estate industry. Many advantages come with these developments. For example, Propy helps users lower their fees by 25%. Propy can do this because it uses smart contracts and automation.
In the future, most of the real estate processes that are being done manually today will be automated. Thus, fewer resources will be used for creating and maintaining documents. That in turn, translates to lower fees. At some point, automation might even cause transaction fees to go down to zero.
Additional Layer of Security
Blockchain technology ensures secure, transparent, and immutable transactions. That is why Propy is using this technology to combat real estate fraud. After the completion of a purchase, a copy of the title deed gets stored on Propy’sblockchain system. The records confirming the purchase get saved at the municipality and on the blockchain forever. So, in addition to lower fees, there will be unhackable proof of ownership.