5 Things to Know About Cryptocurrency in Real Estate

5 Things to Know About Cryptocurrency in Real Estate

  • 360 Realty
  • 08/18/22

Cryptocurrencies — such as Bitcoin and Ethereum — are taking the world of real estate by storm. Formerly thought of as a niche way to maintain assets and pay for various goods, it is now becoming possible to make major purchases with this form of payment. At 360 Realty, we can assist South Tampa buyers with collateralizing their crypto (vs. liquidating it) and other alternative purchase options.

Cryptocurrency is rapidly becoming a new way to purchase real estate

Over the last year or so, buyers and sellers have become more open to making deals that are funded by various forms of cryptocurrency. From luxury estates to vacation homes, this concept is becoming far more mainstream.

Why? Multiple reasons are attributed to this shift. One of the biggest is that people want to convert a portion of their crypto savings into a more stable asset. After reaching never-before-seen highs in November 2021, the value of Bitcoin plummeted in 2022. Holding onto currency that can experience such wide swings isn’t an appealing option for some individuals. As a result, some people are looking to convert their cryptocurrency into stable investments — such as real estate.

The other reason that cryptocurrency is becoming more widely used for funding real estate purchases is due to increased knowledge and trust. Since crypto has been around for a while, more individuals are starting to trust it as a valid form of currency.

Buying a home using cryptocurrency

Purchasing properties with cryptocurrency is still a relatively new concept. Therefore, not everyone is willing to make a deal with this currency. It is important to note that both the buyer and seller must agree to this form of payment in order to move forward. Individuals unfamiliar with cryptocurrency are especially cautious about accepting Bitcoin and other types of crypto over traditional payment methods. As a result, they may not agree to allow this form of payment.

Are there any alternatives? Yes! You can opt to exchange your digital currency for standard U.S. dollars and proceed with the transaction as normal. Our agents and Brokers at 360 Realty are well-versed in the various forms of cryptocurrency for use in purchasing real estate and can guide you through the process with ease.

Pros of using your cryptocurrency to buy a house

  • Shifts your crypto assets into a more stable investment
  • Additional leverage to negotiate
  • Potential for a quicker home buying/closing process

Cons of using your cryptocurrency to buy a house

  • Most sellers are not yet open to the idea of accepting cryptocurrency as payment
  • Potential for reduced legal protections
  • Because the crypto market fluctuates so often, it is challenging to determine the best time to exchange your funds for a home

NFTs and Real Estate

There is a push in the tech world to see if it is possible to conduct real estate transactions with non-fungible tokens, or NFTs. NFTs are unique digital tokens used in transactions for digital objects such as art. People who favor cryptocurrency are eager to find out if it will be possible to trade NFTs for physical assets such as South Tampa real estate.

These are the basics of conducting real estate transactions using Bitcoin. Since each situation and transaction is unique, be certain you understand what you are getting into and have the backing of a boutique real estate brokerage that is knowledgeable about the local market as well as conducting transactions using Bitcoin.

At 360 Realty, we are affiliated with the title company Clear Title Partners and can now accept escrow and funds to close in cryptocurrency. If you are interested in NFTs "s, Blockchain, Crypto, Tokenization, and how other Digital Assets affect the Real Estate industry, 360 Realty has you covered! 360 Broker and Owner, Carlyn Neuman keeps our brokerage and our clients at the forefront of Real Estate blockchain and can help you buy a home with your cryptocurrency funds. Contact us today for more information.

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