Like the internet and smartphones, the use of cryptocurrency to do business is revolutionary. Since its inception, it has been met with excitement and the promise of new possibilities.
Now, the future is here and the world of real estate is quickly embracing buying and selling properties. With crypto, buyers and sellers from all over the world can complete real estate transactions quickly, easily, and legally.
But what is cryptocurrency and how can it be used in real estate?
Cryptocurrency: A Quick Guide
Cryptocurrency is a digital asset that is blockchain-based. Think of crypto as the money and blockchain as the computer code where it is publicly ledgered.
The blockchain has individual transactions to trade tokens. Each node in the blockchain verifies transactions as they happen. The ledger is maintained in a completely decentralized way.
Crypto can be used just like cash for any transaction, including buying and selling real estate.
The Benefits of Using Cryptocurrency to Buy and Sell Real Estate
There are two ways to use cryptocurrency for real estate transactions.
First, you can buy a home outright. Some home sellers will accept cryptocurrency for the sale of their home. Others may prefer a mix of cryptocurrency and cash.
Second, you can use a third-party vendor. They’ll exchange the homebuyer’s cryptocurrency for fiat and deposit it into the home seller’s account.
The use of cryptocurrency is no passing fad. Places like Miami Beach have already seen the benefits. And there’s no indication of that slowing down any time soon. Benefits that have the private sector excited about its use include:
- Increased security
- Reduced transaction costs
- Faster processing times
- Increased accessibility
- Greater liquidity
Let’s take a closer look at each benefit and how you can protect your assets, saving time and money.
1. Your Transaction Will Have Increased Security
Crypto doesn’t rely on a central bank. The transactions are completely trustless and peer-to-peer. This makes the transaction transparent and impossible to tamper with.
Users don’t have to worry about fraud by financial institutions or malfeasance by other parties. It protects both your assets and your identity, which is especially useful for property purchases where anonymity is a plus.
Cryptocurrency is so secure that a Miami Beach penthouse was traded for $22.5 million!
2. Cryptocurrency Reduces Transaction Costs
Using cryptocurrency can also save you money on third-party fees and costs. You can eliminate things like lawyer or bank fees. Closing costs, appraisal fees and attorney fees won’t apply to your transaction so you can potentially save thousands.
3. Faster Processing Times Means Faster Access to Cash
The entire process of trading cryptocurrency for fiat happens in a matter of minutes. Compare that to the weeks, months or even years it takes some properties to sell. You can see the advantage of quick conversion especially in the case of an emergency or unexpected life change.
4. Increased Accessibility to Previously Ineligible Homebuyers
Cryptocurrency loans are typically overcollateralized. This means they don’t rely on credit scores or background checks. Buying and selling real estate is more accessible for those who can’t get a traditional loan. This is especially nice for first-time homebuyers with low credit scores or lack of credit.
5. Greater Liquidity of Your Home
Selling your home with cryptocurrency gives you greater liquidity, or the ability to quickly convert assets into cash. Traditionally, real estate is illiquid because it takes so long to complete a sale. But with cryptocurrency, real estate is easy to trade, especially if it’s tokenized.
Tokenization is when property ownership gets broken up into smaller parts called tokens, allowing co-ownership of a property. This means that, instead of waiting for someone to purchase the entire property, you can sell a portion of your property to get fast cash.
Cryptocurrency is Here to Stay – Call Your Home Sold Guaranteed Realty - Rudy Lira Kusuma Real Estate Team
Cryptocurrency is here to stay and its future in real estate transactions promises a lot. It is a fast and easy way to complete real estate transactions that opens up the real estate market to more homebuyers.
If you need to buy or sell real estate in Southern California, we are here to help. As the best realtors in the area, we can answer any questions you have. Whether you buy with crypto or traditional financing, reach out!
Call us at 626-789-0159 or contact us here to start on the new way to buy and sell real estate.
