We’ve touched on the entry of the Metaverse into the real estate market in the past (check out that blog here), but as interest increases, it’s worth looking deeper into the platform. If you haven’t heard the term yet, Metaverse is a digital world that mimics that of reality where users can interact in a virtual space. The Metaverse has evolved to the point where we can now purchase digital real estate and with options expanding, and people snapping up their own piece of virtual land, real estate agents and financial professionals should be looking into the possibilities of expanding their services to this digital universe.
HousingWire recently dove into what the Metaverse means for mortgage professionals and discovered that he platform has actually already had its first mortgage transaction with Metaverse firm TerraZero which is currently building a real estate firm, Amadea, for the platform. The two-year term mortgage, which is more of a loan, was for a $45,000 loan, however we don’t know the down payment or interest rate. HousingWire notes though that there aren’t currently any state or federal guidelines that govern mortgage loans for this virtual real estate, and TerraZero isn’t actually a licensed mortgage lender.
At this point in the discussion, it’s important to note that most supporters of the Metaverse are also supporters of Decentralized Financing (DeFi) and believe the platform will help pave the way for DeFi to become widely accepted. DeFi is a system designed to cut out the middleman, such as banks, to give people greater control over their money through digital, personal wallets and apps that handle transactions in cryptocurrency.
So, what are banks like JP Morgan and HSBC doing joining the Metaverse? The idea is that as the digital world grows, so too will the Metaverse real estate market and there will soon be a need for financing and other professional services as well as DeFi collateral management through decentralized autonomous organizations (DAO).
Knowing all this, and considering the jury is still out over whether or not it’s worth it for banks to build branches in the Metaverse, what place does a real estate professional have in the Metaverse? As TerraZero has illustrated, there is already a need for underwriting loans to purchase land in the Metaverse. It’s also not so farfetched that investors may call upon a real estate agent to locate and facilitate the purchase of a plot of non-fungible land or manage their wallet of digital estate NFT’s. Can you see your own team adapting to this new digital form of real estate?
In the meantime, you can move your business into the digital age with data from The Warren Group. Start with downloadable Listing Data that allows you gain in-depth insight into a single property, market trends, and even buyer behavior. Access market intelligence on specific property characteristics, school districts, listing dates, pricing, and status, the number of days on the market, and more. Start by reaching out to a data specialist and asking how our data can help you expand your book of business and grow your market intelligence.