The real estate world and the crypto world are becoming one and the same.
Real Estate Is Getting Used to Crypto
It used to be that when someone sold a house, you rarely heard of crypto serving as the financial center point. Normally, real estate transactions are done through traditional means. Someone listed their home or property on a website like Zillow or Redfin, an agency or individual buyer got a hold of the seller, and a transaction potentially moved forward if the customer thought the property was good.
From there, they paid cash or offered a cashier’s check in the form of a down payment so they could get into the house and make mortgage payments.
However, it appears real estate is becoming much more open to the idea of individuals buying and selling their properties with and for crypto, and what used to be a once-in-a-while schtick is now becoming somewhat commonplace. While it’s not quite mainstream yet, analysts say it’s getting there. This presents a lot of hope for crypto traders that they can ultimately use their savings and assets to enjoy a small bit of the American dream.
Some claim the traditional way of buying a house is no different from how crypto transactions occur. The only change is that instead of utilizing banks, crypto is moved from one wallet to another. Paul Lizell – a real estate investor and educator – explained in a recent interview:
Timing can play a critical role as well. If you send the funds in a volatile market, you could lose value against the U.S. dollar if the crypto market is going up. Also, if you use crypto like Ethereum, you could pay high fees ranging in the thousands.
Dennis Smykalov – a representative of Wolsen Real Estate – also threw his two cents into the mix, commenting:
Crypto transactions are not as complicated as they seem, especially if you are working with an experienced seller. As it becomes a more accepted form of payment, you will find more companies willing to share the steps to open a wallet or third-party providers that can assist with the transaction.
Lizell claims to have bought a home recently using bitcoin to cover his down payment. He stated:
Last August, I purchased my home in Naples, Florida, and I used $100,000 worth of bitcoin as my down payment towards the purchase. This transaction was handled by Bit Pay, which converted the bitcoin to U.S. dollars in real time.
There Are a Few Disadvantages
Smykalov continued with a discussion of the potential risks that come with crypto real estate transactions. He said:
Market volatility has been a problem in the past, but by using a third-party company or attorney, they can facilitate the transaction and convert crypto to U.S. dollars. Other options include choosing stable coins that equal U.S. dollars 1-1.
