Real Estate Transactions Prefer Bitcoin, CryptocurrenciesMarch 13, 2018
Bitcoin’s relatively high price works for big-ticket items, decreasing the deal’s processing time.
Real estate transactions are now made using Bitcoin or other cryptocurrencies instead of cash because they are simpler, faster, and safer, according to Tampa, Florida-based real estate broker RE/MAX Action First.
RE/MAX president Kenny Hayslett who is also an IT veteran said that the real estate sector are fast migrating into digital currency transactions.
“The most mysterious thing about Bitcoin and other cryptocurrencies is why they aren’t used more. It is simply digital money, a medium of exchange that uses cryptography to safely and securely transfer assets.”
Hayslett explained that a peer-to-peer (P2P) transaction using cryptocurrencies could take only minutes to be completed compared to traditional cash transactions that often takes days or even weeks because it needs the involvement of banks, lenders, and payment of fees.
Crypto-based real estate deals can also eliminate payment of most fees and even customized to remove unwanted or redundant approvals and other delays. In addition, digital asset payment removes transaction fees, making the completion of the transaction faster and even at a specified time or date. This can be achieved through the widely used escrow smart contracts, or other escrow services for Bitcoin or other crypto assets.
Indeed data by Realtor.com showed that there are now at least 37 single-family homes accepting Bitcoin as payments. Property listings in Kansas for $114,000 or a mansion in Miami or Hawaii for $6.5 million up to $7.9 million accept Bitcoin or Zcash or its equivalent in cash.
California real estate sector embracing digital currency
Neeraj Agrawal, communications director at Coin Center, last week reported that the California real estate sector is embracing cryptocurrencies as investors embrace high-risk, high-profit opportunities provided by both industries.
“Within the context of real estate, it makes sense to use cryptocurrency in those types of transactions… Cryptocurrency is a way to send large amounts of money pretty easily with relatively low fees and little interference from middlemen.”
Agrawal predicted that Bitcoin and other cryptocurrency payments would gain wider use in big-ticket acquisitions, such as automobiles and homes.
Crypto is safer, more secure
Hayslett also dismissed fears among buyers about digital asset purchases, assuring them that is it safe and secure since no money is exchange until the seller agrees to the specific amount and personally approves the transfer.
Compared to traditional real estate acquisition, both parties need to put their trust into wire transfer and make contingencies to prevent any fraudulent wire transfer.
“Real estate itself can be a tricky investment,” says Hayslett. “The clear advantage of using cryptocurrency throughout the exchange is that it can increase in value and reap great rewards for the seller.”
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