blockchain implementation would be good too Very nice 87100 PROPCHAIN Team 6 Nandita Beri Kevin Gannon Diya Mathew Hunter Rudd The market for selling existing homes is large and inefficient ID: 706721
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Slide1
Innovative. Like the digital twin. However, easier to pull off in a regulatory laden environment. I worry that some will have the incentive of doing off chain repairs. Just like people take their car in for a repair and do not report to insurance company. More info on the specifics of the
blockchain
implementation would be good too. Very nice.
87/100Slide2
PROPCHAIN
Team 6
Nandita
Beri,
Kevin Gannon,
Diya Mathew,
Hunter
RuddSlide3
The market for selling existing homes is large and inefficient
https://
www.nar.realtor/topics/existing-home-sales
http://
finance.yahoo.com/news/homeowners-regrets-buying-a-house-redfin-163113390.html
CAGR = 4.8%
5.5 million houses sold
last
year; market expected to grow
at 4
%.
1.1 million home buyers
wish they had better inspection, prior to purchase.
Repair after moving in can be
costly
and
inconvenient
.Slide4
Current purchasing process puts the sellers and buyers at risk
Hire a real-estate agent
F
ind the right property
Draft
a contract
Inspection & Appraisal
Ownership Transfer & Escrow Payments
Post Sale Issues
Superficial knowledge of house
Misaligned incentives
Time consuming
Insufficient information
Steps in Purchase
> $300
Hidden problems undetected
Managed by 3
rd
party escrow account
Faults uncovered
Insufficient information for repairs
Major Inefficiencies
Players Involved
Buyer
Agents
Buyer
Agents
Buyer
Agents
Lawyer
Notary
Buyer
Seller
Agents
Inspector
Appraiser
BuyerSellerAgentsInsurerLawyer
Buyer
Insurer
LawyerSlide5
Home owners are expected to maintain a timeline of events, with accurate records of receipts, scheduled maintenances and materials used, but
t
here is
NO
official file or form.
Without records, contractors and repairmen won’t be able to provide the exact materials that were originally used
for the job.
Keeping track of home improvement, repairs and maintenance is very inefficient
When purchasing a house, the buyer might not get
full details
on the repair and additions done, which might
cost them in the future
.Slide6
Solution: Private, Permissioned
Blockchain
General Contractors
Property Owners
Inspectors & Appraisers
Sub-contractors
Material Providers
Real Estate Agents
Permissioned, multi-party verification
and security
Parties to a transaction verify and publish to the chain
Third-parties validate through cryptography to ensure immutability through nested transactions
Trustworthiness provided by consortium members having competing interests and civil and criminal liability
A single
blockchain
is created for each property thereby serving as an immutable record of relevant activity related to that property
PropchainSlide7
Example: Private, Permissioned
Blockchain
General Contractors
Property Owners
Inspectors
Sub-contractors
Material Providers
Property ID or Address
Publicly Visible
Private, Permissioned
Ownership Change
Real Estate Agents
Permissions to General Contractor
Permitting for project
Account Setup
for project
Materials Billing
Installation Services Rendered
Permissions to Sub-contractor
Registration of Title
Verification of work
Valuation & Sale Preparation
Multiparty Verification
Sale
Cycle
PropchainSlide8
Propchain
Property ID or Address
Publicly Visible
Private, Permissioned
Ownership Change
Permissions to General Contractor
Permitting for project
Account Setup
for project
Materials Billing
Installation Services Rendered
Permissions to Sub-contractor
Registration of Title
Verification of work
Valuation & Sale Preparation
Property ID or Address
Encrypted; Hash to Validate
Encrypted; Hash to Validate
Encrypted; Hash to Validate
Encrypted; Hash to Validate
Encrypted; Hash to Validate
Installation Services Rendered
Permissions to Sub-contractor
Registration of Title
Verification of work
Sub-contractor View
Owner
View
Example: Private, Permissioned
BlockchainSlide9
Blockchain
technology provides the best solution
Distributed Ledger
Remote independent writers
Existence in absence of trust
Disinter-mediation
Economic Benefits
Cryptographically secured
transactions by builders, home owners etc. benefit RE agents, home buyers in future.
Consensus network with
immutable
transactions and timestamps to serve as evidence in case of disputes.
Degree of
inspection
needed
reduced greatly
.
Some administrative staff for builders and suppliers no longer required.
Builders:
R
educed cost due to lower wastage
Buyers/Sellers:
B
etter info. for decision making
RE Agents:
Quick and transparent negotiations
Home ownership details & Price consensually shared and synchronized across network. Home inventory details shared with permissioned users.Slide10
Economic incentives for partners & consumers will get their buy - in
Business Partners
Losers
Material Suppliers
Government
General Contractors
Home Owners & Agents
Consumers
Administrative Staff
Lawyers & Appraisers
3
rd
Party like Escrow office
(in the long term)Slide11
Monetization
Strategy
General Contractors / Builders
Real Estate Agents
Inspectors / Appraisers
Value PropositionSlide12
Revenue Projections
Total revenue expected in Y2 of operation ~
12M
, expected to grow at CAGR of 4%
*Association
of Real Estate License Law OfficialsSlide13
Risk Analysis
RISKS
STEPS TO MITIGATE
Success of platform contingent upon reaching a critical mass of users
Offer
services free to
buyers
Free access to government/policy
makers
Limit to details that can be provided (cannot solely reply upon)
80/20 rule: adequate to capture 80% of the information within a home on PropChain, allowing traditional inspectors to fill in gaps
Complexity of inputs / technology intimidating to inexperienced users
Implement a highly user-friendly, scalable interface (customizable views, filtering capabilities, etc.)Slide14
Risk Analysis
RISKS
STEPS TO MITIGATE
Limit to details that can be provided (cannot solely reply upon)
80/20 rule: adequate to capture 80% of the information within a home on PropChain, allowing traditional inspectors to fill in gaps
Complexity of inputs / technology intimidating to inexperienced users
Implement a highly user-friendly, scalable interface (customizable views, filtering capabilities, etc.)
Success of platform contingent upon reaching a critical mass of users
Offer
services free to
buyers
Free access to government/policy
makersSlide15
Risk Analysis
RISKS
STEPS TO MITIGATE
Limit to details that can be provided (cannot solely reply upon)
80/20 rule: adequate to capture 80% of the information within a home on PropChain, allowing traditional inspectors to fill in gaps
Complexity of inputs / technology intimidating to inexperienced users
Implement a highly user-friendly, scalable interface (customizable views, filtering capabilities, etc.)
Success of platform contingent upon reaching a critical mass of users
Offer
services free to
buyers
Free access to government/policy
makersSlide16
Long Term Strategy