Bitcoin is undoubtedly the strongest and the most popular cryptocurrency in the market. Not only is it the oldest cryptocurrency, but also, it is the one that has changed the entire cryptocurrency game. You might have not heard of other cryptocurrencies like Dogecoin or Ethereum , but everyone has surely heard of Bitcoin.
The owners of Bitcoin use it to buy goods and services. But does that mean you can buy and sell real estate with Bitcoin? Well, yes, you can use Bitcoin to buy and sell real estate. Data shows that people use Bitcoin for 270,000 transactions in only one day and that clearly shows how valuable Bitcoin is becoming every single day.
But even with Bitcoin’s worldwide popularity, very few people understand what it really is and how it works. Well, bitcoin is a type of digital currency that is used by people to buy various goods and services. Buy in recent times, people are increasingly using Bitcoin to buy real estate. But again, many people do not know the process and feel that buying and selling real estate can be a time-consuming process with a lot of hassle.
In fact, even the real estate industry has been really rigid about accepting new technologies. Thus, forcing the buyers and sellers to follow the old traditional methods in such transactions, even if it is time-consuming and costly. But thankfully, Bitcoin solves this issue and you can easily buy or sell real estate sitting miles away from the exact location and get your work done.
Real Estate Agents Accepting Bitcoin
Well, the first thing that you must have complete knowledge about is, the kind of real estate agent you are dealing with. A lot of agents might be ready to sell you land in return for certain bitcoins, but before making any transactions, you must make sure that your agent knows how Bitcoin works. Make sure he has experience using Bitcoin in this field.
Well, here are a few real estate agents in the USA who have a lot of experience with Bitcoin –
• Kuper Sotheby’s International Reality – This is a real estate company based out of Texas and is known as the first agency to accept Bitcoin payments.
• Magnum Real Estate Group – This is a real estate agency based out of New York that understands the desires of the younger generation and thus, accepts Bitcoin payment to promote the younger generations’ inclusion in such businesses.
• Open Listings – These real estate sites allow you to buy homes and plots online by using Bitcoin. Also, this site will only show you lands that you can buy using Bitcoin only.
• Sand Key Realty – This Florida-based real estate company has been known for offering great property sales where sellers only accept Bitcoin payments.
I have made a list of four famous real estate agencies in the USA, but there are other such agencies that are accepting real estate payments in Bitcoin as well. More and more companies are facilitating Bitcoin transactions. Not just that, Bitcoin is also becoming the most popular investment for the real estate market.
Real Estate: How to Sell And Purchase it with Bitcoin?
Are you not sure if you can buy or sell real estate using Bitcoin ? The only difficult part of the whole process is to find yourself a real estate agent who accepts payments in Bitcoin. Also, even if the agent is not ready to accept payment in Bitcoin, you always have the option of exchanging it.
When you fund an agent who accepts payments in form of Bitcoins, start the process of negotiation with him. When you reach a deal that is suitable for both of you, transfer your Bitcoins and have a property in your name. You will also have to pay your realtor for the land you have purchased and he might not accept payment in Bitcoin and you might have to end up exchanging it.
But, remember, Bitcoin is not yet a very stable medium of exchange. It was just created a decade ago and is still very new. So, if you buy a tank with Bitcoins, you will not be able to mortgage it to a bank.
Let us now talk about selling property using Bitcoin. If you want to do it, what are the steps that you will have to follow?
In such a situation, find a real estate agent who not only accepts Bitcoin payments but also has knowledge about the whole transaction process and how it works. Then ask him to make the whole payment in Bitcoin. It’s as simple as that.
So, while listing your property for sale, make sure you are properly mentioning in detail the kind of payment you are ready to accept. Let your potential buyers know whether you are only open to Bitcoin or are you ready to accept the traditional currency as well. Once you do that, you will be able to see buyers bidding on your property. You can choose any offer you want, negotiate with the buyer, and sell your property.
Pros And Cons of Buying a Property Using Bitcoin
Well now that you have understood how you can buy property using Bitcoin, let us discuss its pros and cons.
Buying House with Bitcoin –
Pros –
- Well, if you have gained a huge amount of profit from Bitcoin, then you must use that profit and invest it into buying real estate .
- This will help you diversify your wealth as you will not just be having traditional currency, the digital cryptocurrency , but also you will be using both of them to buy a real estate asset.
- One thing that you must know about the real estate business is that they love cash buyers. And when you make transactions in Bitcoin, that is similar to using cash thus, the power is in your hand. So bargain and make a negotiation suitable for you.
Cons –
- One of the biggest problems related to buying property using Bitcoin is that there are very less sellers who accept Bitcoin payments and even if you find some, your options will be very limited. This also means that you will not be able to find properties in the desired locations.
- Also, if you spend your Bitcoin and use it to buy property, you will not be able to gain the appreciation and future returns it could have brought.
- Lastly, you will also have to hire a tax expert once you indulge in such kinds of transactions as carrying out real estate transactions can be a complex process.
Pros And Cons of Selling a Property Using Bitcoin
Selling House with Bitcoin –
Pros –
- If you sell your property and accept Bitcoin in return, you will gain a lot of profit when the value of Bitcoin will rise in the future.
- Once you open the sale of your property to everyone including the Bitcoin buyers, you will be attracting a lot of new potential buyers and thus, will be able to gain the best deals along with attracting cash buyers.
Cons –
- It is true that in case of the value of Bitcoin rises, you will gain a lot of profit, but the value of Bitcoin might also depreciate in the future and you might have to deal with huge losses then.
- Both the seller and the buyer have to go through a complex taxation process once they indulge in cryptocurrency transactions in the real estate business.
- Lastly, when you accept Bitcoin payments, you will have to arrange a wallet where you can store it. This means you need to have complete knowledge about the wallets and how they work, or else, you might have to seek help from others.
Well, Bitcoin is comparatively very new to the market. It will take some time to flourish and emerge as powerful as traditional currency. The real estate business is a bit rigid and not open to technological advancements, but still, they are trying to adapt cryptocurrency transactions in buying and selling properties.
However difficult may it be, cryptocurrency is the future. And buying and selling properties using Bitcoin will let everyone have an opportunity to own cryptos. This will also let the buyers consolidate their profits and also bring in a huge diversity in their investment portfolio.
Is it Really Safe to Use Bitcoin in Real Estate Transactions?
Well, most of the people in the real estate business indeed prefer traditional currency, but slowly, that is also changing. But is it safe to use Bitcoin? Well, yes. Bitcoin is a much safer option when dealing with real estate. Not only does it simplify the whole transaction process, but also, maintains security and transparency throughout.
Also, Bitcoin and other cryptocurrencies work on blockchain networks . In recent times, blockchain has become one of the most popular networks. It claims to be a revolutionary method of carrying out any real estate transactions, although it has not delivered its promise yet. The network of blockchain has the potential of bringing is a positive change in the industry.
Just like people use bitcoin to purchase goods and services in other industries, similarly, experts believe that blockchain networks will also bring is a major development in the real estate industry as well.
Along with it, this technology has also brought in the concept of tokenization where a lot of people have small shares of a property, thus solving the issue of crowd-funding. This platform is an easy way for people to buy and sell property using Bitcoin. Bitcoin simplifies the whole transaction process.
Closing Thoughts
Now that people are buying everything starting from cars to basic services using Bitcoin, buying real estate will also not be that difficult. You might think that buying property using cryptocurrency can be tough and you might not get the desired land, but you must think of the asset you will be making.
It is also because of the blockchain network that the brokerage system can be reduced and thus promoting cost-effective transfer of properties. Just like we cannot imagine how people a few decades ago functioned without cellphones, similarly, in the next ten years, people will wonder how real estate transactions took place without the use of cryptocurrencies and smart contracts.
Remember, transparency in every transaction is very important . And no matter how much you try, complete transparency will only be possible with blockchain networks. True, Bitcoin and blockchain are not the solution to every problem in the real estate industry, but it is also true that such transactions will solve a lot of problems as well.