Metahouse could be the first of a long list

Real estate – both in the real and virtual world – is increasingly expensive and, in some cases, even related.
A home dubbed the Beverly Hills Metahouse recently went on sale for $9.4 million. What makes it unique is not its architecture or even the fact that the property has approved plans for a new house on site – the current house will be razed – but that the buyer will have the option of buying four plots of land at Decentraland, a virtual marketplace, for $100,000.

Metaverse property is a replica of plans for the Beverly Hills home at 607 N. Arden Drive
Listing agent Rochelle Maize of Nourmand & Associates said she got the idea to link the Beverly Hills home for sale to a metaverse property six or seven months ago when she started seeing more writings on the new virtual world.

“I’ve always been one to think outside the box in real estate, learn different markets and diversify,” Maize said. “At first I was a little scared why do I need to read about it and it’s so prevalent, but the more I read about it the more intrigued I became.”
After learning more, Maize said “a light bulb went out” and she decided to try the strategy of linking the property to one in the metaverse.

She started working with Santa Monica-based LEDY, who created the metaverse version of the house, to make it happen.
“I saw it as a huge marketing game, but I also saw the potential for it,” Maize said, referring to interest in houses across the metaverse beyond just a new marketing strategy. .
Mark Emtiaz, Mark D’Andrea and Alex Yates founded LEDY last year. The company creates digital assets, a process it started with a virtual world resort.

“There’s a lot of excitement about the metaverse,” D’Andrea said. “It’s a new space and it’s growing extremely fast. We are seeing a lot of interest in this type of project.
And experts see future collaborations on the horizon.
“We hope there will be other opportunities for us to work together and do the same,” Emtiaz said. “We’re going to start seeing more real estate agents, sellers, and buyers who see the value of combining metaverse presence with real-world presence”

Your next home might come with a counterpart in the virtual world.

Kerry Ann Sullivan, partner at Pardee Properties, said she hasn’t worked with Metaverse yet and thinks “it will be interesting to look at what’s happening in Beverly Hills” with the Metaverse home there.
Still, she thinks nothing will replace physical real estate, “With real estate, people are looking for something physical to call home,” Sullivan said. “While that’s cool…ultimately in residential real estate you need something to cover your head with. That’s where the focus will be, but it’s definitely catchy and great for marketing and can be eye-catching and fun to play with.

And while experts disagree on whether customers will want Metaverse homes that mimic their real-life properties, most agree that Metaverse will grow in popularity as more and more people will decide to invest in the new type of asset.

The Metaverse

Real estate sales on the four largest metaverse platforms – Sandbox, Decentraland, Cryptovoxels and Somnium Space – reached $501 million worldwide last year, according to data from MetaMetric Solutions.
Last January, Metaverse sales topped $85 million, leading MetaMetric Solutions to predict that investment in the industry could approach $1 billion this year.

Piper Moretti, managing director of Manhattan Beach-based The Crypto Realty Group, is a realtor by trade and has seen a lot of interest in buying homes using cryptocurrency. She said there is now interest in buying into the metaverse as well, and people can even “earn money by flipping virtual lands. There is money to be made there.
At the start of last year, the average price for a Metaverse plot of land was around $100, and by the end of the year it was $1,500, Moretti said.

“I see land becoming more lucrative, more expensive, like it is here in the real world,” Moretti said. “We now have crypto day traders, you could be a full-time freak in the metaverse, and I see that happening a lot more.”
Rob Dixon, who first discovered Decentraland while writing a science fiction story about five years ago, now owns eight plots around the world and runs two districts: an amusement park and a market.

The amusement park has rides, including one where people can ride a dragon. For the market, in the meantime, he is working on bringing in partners and even renting the space.
For his private plots, Dixon, artist, creates a gallery.

“I am convinced of the potential. It’s definitely there,” he said of the Metaverse and his decision to own land there. “It’s going to be real stuff going forward, but we’re definitely in the early days and I’m excited to see where we’re going.”

New concepts and roles

Maize isn’t the only realtor to notice promise in the metaverse.
Ania De Pourbaix and Jesse Ozar of XO Group at Compass also work on metaverse real estate. Both operate in the Los Angeles area.
“We have created a division of our XO group called the XYZ group, which deals with all things metaverse real estate,” Pourbaix said.

The team has purchased a “meta mansion” which will be used as a virtual office space for the group. Ozar and Pourbaix said it was a way to interact with customers within the metaverse.
“One of the things that really got us hooked on this idea was not staying stagnant and always trying to look to the future,” Ozar said, adding that younger buyers are more comfortable with it. the idea of ​​the metaverse.

“We see it becoming mainstream in the next few years,” Ozar said. “We want to be ready to be the all-knowing resource.”
But some experts disagree on what the metaverse will mean for real estate agents.
Pourbaix said customers would “always need guidance.”

“The role of a real estate agent has changed from being an ad holder to a much more advisory role now,” she said. “We plan to be the ones who can guide people.”
She said commissions would likely work as they do now and be paid to agents for advising their clients.
Moretti, however, said real estate agents “are not required” to buy and sell in the metaverse.
“The whole idea of ​​blockchain is to get rid of the middleman,” she said.

Future

Compass agent Aaron Kirman, who was No. 3 on the Business Journal’s list of top residential agents in Los Angeles with $1.2 billion in sales last year, said the Metaverse would be “a major focal point” in the future.
“It’s a whole new destination for us and a whole new outlet for the region, the house and the landscape. It’s the start of a new moment,” he said.

Discussing the prospects and future viability of the Metaverse, Ozar said it’s not an if “but a 100% guaranteed when”.
Pourbaix added that the metaverse gives low-income people the opportunity to “own a version of a house.”

Ozar said that while there may be concerns, the Metaverse is here to stay.
“I recognize that there is a lot of fear, uncertainty and doubt in this landscape; you can kind of reflect it on bitcoin,” he said. “He’s got a huge following and then hangs on and there this massive exponential growth and then he has to have a widespread downturn…and then find his leveling and then start to take off,” he said. “This metaverse could be altered as digital real estate slowly adapts. It’s not an if, it’s a when. I’m really excited to see what he can become and I know he’s going to be embraced whether people like it or not.

Maize said she wants to tie other listings to homes in the metaverse, based on price.
“We’re definitely considering that, but it’s a cost,” she said.
Developing a home in desirable areas of the Metaverse, she said, could cost around $100,000.
LEDY’s Emtiaz said the company has also signed deals with another agent to work on projects and is in talks with others.

He sees the metaverse as the future.
“We’re in the early stages of creating websites in the 1990s; if you were talking about websites it was “why would you need them” but now it’s the normal way of doing business and getting your brand out there. This is how we see the metaverse,” he said.

Michael J. Chiaramonte