In almost every industry, the trend of cryptocurrency is having an impact. Residential real estate is no different. Delaware real estate buyers, sellers and professionals should be aware of some of the activity in other states and how it may impact their markets in the future.
Among the activity are home listings, primarily in California and Florida, where Bitcoin is being accepted as tender. In New York City, a pair of condos were recently put in contract to sell using the cryptocurrency. There are many questions this activity raises. Is this the best option for large real estate purchases, given the high-risk nature of this fluctuating currency?
Those looking to purchase residential real estate with Bitcoin will be taking a bit of a gamble, as the currency has changed values by a large margin over the past year. In fact, the amount of Bitcoin that would be needed to buy a $45 million home in April 2017 could have purchased 13 such buildings by the year’s end. Some real estate professionals and developers, such as the developer of the aforementioned New York City condominiums, insist that despite these dramatic fluctuations, cryptocurrency is here to stay.
There are some obvious drawbacks to using or accepting a currency that could dramatically alter in value at a moment’s notice. However, one benefit of accepting the currency that other sellers have experienced is extensive news coverage and advertising of residential real estate for sale. Delaware sellers and buyers alike should think carefully before entering into any real estate deal, especially such an unorthodox one. A real estate lawyer can help answer any questions people may have about legal matters related to buying or selling property.
Source: buzzbuzzhome.com, “Should you think twice before buying a home using Bitcoin in the US?“, Robert Clark, April 13, 2018