This article is entirely based on cryptocurrency and its benefits. If you’re so indulged in Crypto Piques Real Estate Interest, this can be amazingly a helping hand for you.
Imagine this: A buyer finds their dream home on Wednesday and by Friday they’ve secured a deal in cryptocurrency to transfer to the seller. While this might seem like the type of transaction that only investors or niche markets might engage in, this trend of cryptocurrency as a way to finance a home purchase is beginning to enter the realm of everyday real estate transactions. Real estate agents, buyers, and sellers are wondering could cryptocurrency get a foothold in the future of the real estate, even for people who are looking to buy a home in the suburbs for their family? While cryptocurrency is still a relatively new way to buy a home, buyers and sellers who have an interest in these assets could benefit from having a basic understanding of how cryptocurrency could change the real estate market and is already recognized as a trend.
Cryptocurrency basics and how it applies to real estate
It seems everyone is talking about cryptocurrency these days, whether it’s to trade or use cryptocurrency to invest in something else, but what exactly is it? This digital currency is tradable as a digital asset and may be converted to fiat, or standard currency, like USD. Bitcoin, which launched in 2008, was the first and is one of the most commonly used, along with Ethereum. Cryptocurrency uses the blockchain to record transactions as a public record — that means that anyone can look up this data. While some buyers might transfer cryptocurrency directly to a seller, others might use platforms that are designed to convert cryptocurrency to fiat. Because there is typically no mortgage-backed loan involved with a cryptocurrency real estate transaction, it is most similar to a cash sale. Like a cash sale, many of the steps like inspections or appraisals required by a mortgage lender may be eliminated with a cryptocurrency real estate transaction.
Extra considerations for cryptocurrency sales
Just because steps like an appraisal or inspection don’t need to be a part of a cryptocurrency transaction, that doesn’t mean it’s a good idea to eliminate these processes that can ensure buyers and sellers will be protected from getting less than they bargained for. A real estate attorney who can work with buyers and sellers on a contract is a must, especially one who is already familiar with how a cryptocurrency transaction is different from a real estate transaction with a mortgage-backed loan. In the contract, the fiat amount for the home should be included along with considerations for value fluctuations for the cryptocurrency.
How cryptocurrency could benefit buyers and sellers
For buyers and sellers who are looking to speed up the real estate process, cryptocurrency can be a time saver. Because cryptocurrency has the potential to quickly go up in value (or be devalued), that could equal an extra investment for sellers who accept payment in cryptocurrency. Especially for international transactions, the use of cryptocurrency could make the entire process more efficient.
While cryptocurrency real estate transactions are still part of a niche market, they have the potential to change the future of the real estate, for buyers, sellers, and real estate agents.