Today’s podcast is part 4 of 4 (maybe 5) podcasts about the Metaverse and what it really means to the real estate industry, real estate agents, and our future.
8 – Can you own part of the Metaverse (like real estate)?
Yes. In fact, virtual metaverse-based ‘land’ is selling now. Remember, these are the early days.
Gambling on virtual land in a virtual world could leave you with virtually nothing. Please remember the legend about the man who was selling the Brooklyn Bridge. Legend claimed that he sold it at least twice a week. He did sell it several times including at least once for $50,000! The new owner would discover he was the victim of a con when the New York police officers would stop the “new owners” from setting up toll booths in the middle of the bridge. That said, people are indeed using real money to buy ‘land’ in the metaverse. After the dust settles, there will be real transactions happening with real money being transferred for virtual land in which to build virtual buildings.
From CNBC:
Sales of real estate in the metaverse topped $500 million last year and could double this year, according to investors and analytics firms.
Real estate sales on the four major metaverse platforms reached $501 million in 2021, according to MetaMetric Solutions. Sales in January topped $85 million, the metaverse data provider said. It projects that at this pace sales could reach nearly $1 billion this year.
Republic Realm paid a record $4.3 million for land in the largest metaverse real estate platform, Sandbox. The company is developing 100 islands, called Fantasy Islands, with their own villas and a related market of boats and jet skis. Ninety of the islands sold in the in the first day for $15,000 each and some are now listed for resale for more than $100,000.
For investors, the big question is how to assign value and risk to an asset whose scarcity is artificial and whose future is a blank slate. Over a dozen platforms are now selling real estate in the metaverse, with new ones sprouting up almost weekly. So far, real estate sales have been concentrated on the “Big Four” — Sandbox, Decentraland, Cryptovoxels and Somnium. There are a total of 268,645 parcels on the four platforms, all of varying sizes.
Does location matter?
A rush of companies, major brands and investors are pouring into the new land craze, hoping to get in on the ground floor of the next digital Manhattan or Monaco. Yorio said land value in the metaverse will be determined by what owners do with a property — like designing a popular attraction, museum or feature —rather than location.
“You can teleport anywhere so location isn’t as important,” she said.
Yet other investors say that just like in the real world, location in the metaverse is everything when it comes to real estate. Prices for parcels near Snoop Dogg’s planned partnership and virtual world in Sandbox are fetching a premium, along with parcels near the Atari development.
(You think you had appraisal problems before!)
Reminder, you promised yourself you would become a HARRIS Coaching client. You are done wasting time and ready to follow a proven path. Now, while you are here make the next natural step and join the 1000s of other agents as a HARRIS Real Estate University coaching member. No more waiting or procrastinating. Join now. Here is the quick and simple enrollment.—-> YES, Enroll Me Now In Premier Coaching. I WILL make NOW my best year ever!
9 – Can I personally broker metaverse land (or ‘buildings’) in the metaverse? Believe it or not, yes you can.
– The largest land purchases in the metaverse are in the millions, with the largest land sale closing out at $4.3 million in The Sandbox, by Atari on December 8, 2021.
– Metaverse Property is the first virtual real estate company. The virtual real estate group facilitates the acquisition’s virtual land to new investors and supporters of the crypto, blockchain, and Web 3.0.
– SuperWorld is a competitor to Metaverse Property. SuperWorld allows users to invest in a stake in the company when investing on digital land and share in platform revenue.
And now here’s someone who got financing… it’s only $30,000, but it still happened. Is this the beginning of MetaMortgages?
(From BisNow.com)
In what’s being touted as a first-of-its-kind transaction, a venture capital firm has taken out a mortgage to occupy space within the metaverse.
Canadian technology firm TerraZero, which was founded last year to capitalize on burgeoning demand for the virtual community concept, offered financing for the approximately $30K deal. The undisclosed borrower acquired two parcels in Decentraland, one of about 10 major community platforms within the metaverse, where each digital parcel runs about $15K, TerraZero CEO Dan Reitzek told Bisnow.
“The price of the land, even though it’s virtual, is increasing rapidly and soon will not be available at a reasonable price,” Reitzek said. “We want to bridge the gap between the real world and the metaverse.”
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Source: READ.
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10 – Will people really work (make a living ) in the Metaverse? They already are. And now this:
– Walmart appears to be venturing into the metaverse with plans to create its own cryptocurrency and collection of NFTs.
– The big-box retailer filed several new trademarks late last month that indicates its intent to make and sell virtual goods.
– In a separate filing, Walmart said it would offer users virtual currency, as well as non-fungible tokens, or NFTs.
– Virtual real estate brokers.
– Virtual architects to develop the virtual property.
– High-end fashion for your avatar. According to Morgan Stanley, the metaverse could help luxury brands expand their total addressable market by over 10% by 2030, good enough for more than $50 billion in additional revenues. More exciting, the bank says, are the profit margins, with the potential for 75% of that revenue to hit a profit measure called EBIT, or earnings before interest and taxes.
Think about it: With a digital item, there is no need to buy raw materials, spend money on labor, bother with manufacturing or ship something around the world. Brands already have a vast archive of collections to pull from and repurpose for the digital realm. Plus, they don’t only profit from the first sale. They can collect royalties each time an item is resold. This is made possible by embedding terms in a “smart contract” on blockchain technology, which will power the metaverse.
Digital fashion is also inherently sustainable, with the production of a single digital garment requiring 97% less carbon and 872 fewer gallons of water than a physical garment, according to DressX, a digital fashion startup. Plus, there’s no leftover inventory at the end of the season that must be discounted, donated or destroyed.
Reminder, you promised yourself you would become a HARRIS Coaching client. You are done wasting time and ready to follow a proven path. Now, while you are here make the next natural step and join the 1000s of other agents as a HARRIS Real Estate University coaching member. No more waiting or procrastinating. Join now. Here is the quick and simple enrollment.—-> YES, Enroll Me Now In Premier Coaching. I WILL make NOW my best year ever!
Source: Forbes
Books to read to ready yourself:
– Ready Player One.
– How to buy ‘land’ in the metaverse. https://www.fool.com/real-estate/2022/01/25/3-ways-to-buy-real-estate-in-the-metaverse/ and
https://sensoriumxr.com/articles/guide-to-metaverse-real-estate
