As a licensed Realtor®️ in NJ, I have helped many clients achieve their American dream of becoming homeowners. Focusing on luxury and first time home buyers, my sellers and buyers were ecstatic to hear the news of real estate embracing cryptocurrency.
The transaction is handled similarly to a cash transaction, except it makes it easier for both parties to close earlier, there is complete transparency, and more efficiency when handling payment through an "If-Then" condition.
Language has to be very specific on how crypto will be handled at the end of escrow. If the value of the crypto has decreased, then the buyer has to make up the difference to pay the seller the full agreed upon price, and if the value increased, then the seller would return the difference. If the seller wishes to convert the cryptocurrency into usd, then it would be processed through a third party such as BitPay.
I still recommend doing an inspection, which could help in lowering the purchase price in negotiations, however sellers who are accepting cryptocurrency are selling the property at a higher price than if it were purchased with a mortgage loan or cash. A $2.15million property listed 32 days ago in Middletown, NJ is accepting Bitcoin as payment for a non negotiable price of $2.4million. The increase in price makes sense since cryptocurrency is extremely volatile; it’s as if there’s an added premium to protect the seller from its volatility.
Source:
https://www.zillow.com/homedetails/286-Portland-Rd-Middletown-NJ-07748/2097776496_zpid
Cryptocurrency is the newest and best way to purchase real estate, but being that it’s still pretty new in the industry, it should be researched and completely understood before selling or buying a property. This new type of payment will become the norm in real estate transactions, and while it’s a sexy idea to purchase coins and invest, the turf is not for the uneducated. Stay alert of the market as the value of a coin can dramatically increase or decrease within hours.
SmartContract is a blockchain technology that will revolutionize the way real estate transactions are conducted.
In a smart contract approach, an asset or currency is transferred into a program “and the program runs this code and at some point it automatically validates a condition and it automatically determines whether the asset should go to one person or back to the other person, or whether it should be immediately refunded to the person who sent it or some combination thereof.”In the meantime, the decentralized ledger also stores and replicates the document which gives it a certain security and immutability.
-Vitalik Buterin, programmer of Ethereum
As described by Ameer Rosic in Blockgeeks.com:
In this format, contracts could be converted to computer code, stored and replicated on the system and supervised by the network of computers that run the blockchain.”
SmartContract also provides autonomy. Since the seller and buyer are in complete control of the transaction, and it’s accuracy is precise, there is no need of a notary, lawyer or broker.
Source:
https://blockgeeks.com/guides/smart-contracts/
Although you can now avoid the need of multiple middleman parties in a real estate transaction with SmartContract, having a real estate agent by your side when purchasing a property will always be beneficial as they are an expert in the local market that you are interested in. Among being a fairy real estate matchmaker, concierge style of service have become more common among luxury agents. If they are selling your home, they are spending their own money to fully market the listing to gain its maximum exposure, and if you are buying, they are driving around all day checking out listings while you’re at work to save you time from viewing properties that they know would not have given you the “this is my home-I’m in love” feeling. International buyers are also relying on agents to help them find their dream home.
Do your due diligence and choose an agent who is experienced with cryptocurrency, studies the market daily, is an expert in the neighborhood of your choice, and can guide you through the process.
There are also websites such as Bitcoin Real Estate where you can list or buy a residential or commercial property, lot, resort or villa worldwide. Check out some of the most beautiful homes that I’ve ever seen and imagine yourself living there. http://bitcoin-realestate.com/
Cryptocurrency has made it possible for those who would have never imagined themselves owning a property to wake up everyday in their new home.
Imagine if you could purchase your next home with Steem, one day perhaps :)
Peace and Love,
Lucid Gal
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