Will blockchain and cryptocurrencies really be used for real estate?
Last week the Miami Herald posted an article that the future of cryptocurrency in real estate was already here. It’s difficult to tell just how many transactions have taken place—exchanging real estate for bitcoin or vice versa—until someone brags that they completed a successful real estate deal.
Two business partners listed their home for sale in Miami and got the seller to agree to send bitcoin for payment. The couple in question had also noted that they had previously sold another Miami property for the “first ever cryptocurrency real estate transfer.” They were certainly the first to make the announcement. Since it’s an unregulated industry, and there is nothing against the law from accepting any form of payment for real estate, at least in Miami, this was the first official cryptocurrency to cryptocurrency real estate transaction.
Not only will more real estate transactions operate this way, but it may also even open up an entirely new real estate practice: listing homes on the blockchain itself. The blockchain is where all cryptocurrency transactions are permanently recorded, and this could reshape the way we list and sell properties.
What will be the benefits of its use for real estate?
To benefit real estate agents, buyers, or sellers may see with the use of blockchain is the respective property could be posted on real estate blockchain in the near future. Potential buyers and sellers can see how much the home is worth in real-time. This would give us more transparency and we may also not rely on real estate appraisers.
For cryptocurrencies, the benefit may be that buyers can easily purchase a house with bitcoin or ALT coins, and sellers could receive cryptocurrency in exchange for a property. Obviously, there’s still going to be that usual “back and forth” that occurs in real estate transactions. Once the deal is approved, the cryptocurrency transaction can take place, and paperwork can be signed.
Are cryptocurrencies logical at this stage?
Stephen Burke, the seller of the bitcoin property deal, is optimistic that 35 to 45% of all real estate transactions will involve some form of cryptocurrency by 2023. In fact, the closing window may be a lot narrower, which may be desirable for many buyers and sellers. This is because there is no third party involved in the transaction, such as a mortgage company that is offering a loan in exchange for funds. He believes that Miami is the perfect city where this practice will thrive.
In Florida and other states, there can also involve a 30-day window to allow the contracts and financial matters to be completed. Since the finance part can be achieved through cryptocurrencies, there is no need for the extra time. But of course, you still want a legal company to handle the transfer of land titles.
While the usual method of selling homes through mortgages and cash isn’t going away any time soon, other payment methods will certainly be welcomed. It will be very interesting to see where and how the next real estate cryptocurrency transaction will take place.
Many people have cashed in their cryptocurrencies and used it to buy property. This is just the beginning of a new era so anything can happen and it will be interesting to see what the future holds!