In just a few short years, the public’s perception of cryptocurrency has evolved dramatically.
It began with many first seeing it as a novel but impractical idea, then as a scam, then as a valid but volatile investment, and now, it’s finally starting to be seen as a legitimate form of currency for all kinds of transactions.
More recently, it’s even been gaining ground in real estate transactions. This is suprising considering how far behind the industry is when it comes to technology. But things have progressed rapidly. The first NFT real estate sale took place in Gulfport, FL in February 2022, and more recently, the largest-known real estate deal of using crypto in America was a Miami Beach penthouse that traded for $22.5 million.
While there are advantages to buying real estate with crypto, there are also some disadvantages as well. Let’s address the disadvantages first.
Most sellers, as well as most real estate professionals, simply don’t understand cryptocurrency yet, let alone how to conduct a real estate transaction with it yet. That can make it difficult to conduct a transaction this way because the seller, both Realtors, and title professionals involved in the closing all need to understand cryptocurrency. This may be possible in major cities where people tend to be more tech savvy, but it’s unlikely in many areas.
The reality is that the process itself is pretty straightforward and is no different than using traditional funds—with one exception. Rather than money moving between two banks upon closing, it moves from one crypto wallet to another. Paul Lizell, a real estate investor and educator, says “Timing can play a critical role as well, if you send the funds in a volatile market you could actually lose value against the US dollar if the crypto market is going up. Also if you use a crypto like Ethereum (CRYPTO: ETH), you could pay high fees ranging in the thousands.”
For the most part, every other aspect of the closing process remains the same.
“Crypto transactions are not complicated as they seem. Especially if you are working with an experienced seller. As it becomes a more accepted form of payment, you will …
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