With the rising normalization of cryptocurrencies in our marketplaces, it’s no surprise that crypto has found its way into real estate. In fact, the first commercial property in New York has been put on the market exclusively for Bitcoin—29 million dollars’ worth, to be exact.
With how quickly the crypto wave is catching on in general (approximately 13% of Americans bought or traded cryptocurrency in 2021), now is the time to study how crypto technology can potentially be used to benefit your real estate practice before it becomes a new norm.
The Case for Blockchain Real Estate Transactions
The security that blockchain offers to the real estate industry is a gamechanger, offering a safe medium for digital contract automation and record-keeping for you and your clients. Since a user’s personal information is stored on the blockchain, this can streamline the process among mortgage lenders, bankers and agents, as well as buyers and sellers, making credit checks quicker and the transfer of ownership essentially automatic.
It’s also worth noting that blockchain can minimize fraudulent claims and transactions since the history of the property’s sales and transfers will be more accessible, protecting you and property owners now and well into the future. And since all of a property’s information is stored in the blockchain, real estate agents and investors will have a much easier time analyzing a property’s title, deed, land registry, co-ownership details and any other applicable information at any given time.
How Buyers Can Use Bitcoin to Buy Real Estate
Although there are plenty of cryptocurrencies available, Bitcoin and Ethereum are the two you’ll likely find title insurance and escrow companies willing to accept. Even then, many may not even back ventures funded by cryptocurrencies, so it’s important to do your research if you plan on using crypto yourself as a real estate agent.
The safest bet for success when utilizing crypto among parties who are either unfamiliar or skeptical is to “cash-out” your crypto into dollars that can be used during the transaction process instead of directly transferring bitcoins.
It’s no wonder that blockchain real estate transactions have become so popular as of late—and it looks like they’ll become even more popular as more Americans adopt crypto-currency as a legitimate means of transferring money. While it’s currently not the norm to buy real estate with crypto, the sooner you learn about and prepare your real estate business for these types of transactions, the better off you’ll be.
As part of the Colibri Real Estate family of premier education brands, McKissock Learning helps hundreds of thousands of real estate professionals each year achieve sustainable success throughout each stage of their career via continuing education and professional development courses.
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