Bitcoin has created a new form of wealth, particularly for those who purchased bitcoin at its lowest value. Bitcoin is being used in over 270,000 transactions daily, and its usage is only increasing.
So, why not use your Bitcoin to make your real estate transactions? This guide will explain everything you need to know about property transactions involving bitcoin.
How To Make Your Real Estate Transactions Using Bitcoin
When using bitcoin to make your real estate transactions, you must be aware of real estate agents and companies that have experience of using bitcoin in the sale or purchase of a home.
Some real estate agents that have experience using bitcoin include:
- Magnum Real Estate Group - This is a New York-based real estate company adapted to the younger generation's desire to make using bitcoin possible.
- Kuper Sotheby's International Realty - This Texas-based real estate company.
- Sand Key Realty - This real estate company is Florida-based with the seller accepting bitcoin as the form of payment.
- Open Listings
The future of real estate is changing to accommodate the use of bitcoin in property transactions, and more real estate companies are facilitating bitcoin transactions. In fact, bitcoin is becoming as popular an investment as real estate.
If you plan to use bitcoin to purchase a property, you must first inquire whether the seller is accepting bitcoin. If the seller does not accept bitcoin, you must convert your cryptocurrency into traditional currency using a third-party website.
If the seller accepts bitcoin, you must negotiate the sale price in bitcoin.
You may only use bitcoin to purchase a property if you do not need to obtain a mortgage for the property, like a cash buyer. This is because banks are hesitant to accept bitcoin, partly because of its associations with money laundering, and it is an unstable currency.
Once the sale has been negotiated, you must also figure out the method of payment if your real estate agent fees can't be paid using the currency.
If you wish to sell your property in exchange for bitcoin, you must first find a real estate company that has experience using bitcoin to make real estate transactions (see the list above for guidance).
When listing your property, you must determine whether you are listing it only for bitcoin buyers or if you are willing to accept other cryptocurrencies or traditional currency. Once it is listed, buyers will make offers in your preferred currency, and you can accept the offer and sell your home for Bitcoin.
Buying A Home With Bitcoin: The Benefits And Disadvantages
There are many advantages to purchasing a home using bitcoin, including:
- If you have made a profit from investing in bitcoin, buying property using the currency is a great way to consolidate your profits.
- Investing in property gives you a chance to diversify your assets.
- Real estate transactions favor cash buyers, and using bitcoin is like being a cash buyer, which can give you more negotiating power
However, there are also some disadvantages to buying a home with bitcoin, including:
- One of the drawbacks of purchasing a property using bitcoin is the lack of sellers. There is limited availability of properties being sold for bitcoin, and you may have a hard time finding properties in your desired location.
- If you decide to invest in property, you may miss out on future appreciation and returns on your bitcoin.
- You will need to enlist the help of a tax expert, as making real estate transactions can be pretty complex in terms of taxes.
Selling A Home With Bitcoin: The Benefits And Disadvantages
Some of the advantages of selling a home using bitcoin include:
- The chance of appreciation offered by owning bitcoin.
- If you open up the sale of your home to bitcoin buyers, you will widen your audience and attract more cash buyers.
Some of the disadvantages of selling a home using bitcoin include:
- The chances of appreciation are equally weighed with the possibilities of bitcoin
- s value depreciating, resulting in losses.
- The complexity of taxes involved in bitcoin real estate transactions applies to both the seller and the buyer.
- You will also need to establish a secure virtual wallet for your new bitcoin, which may involve enlisting help, depending on how well-versed you are in cryptocurrency storage.
Like many other transactions, real estate transactions are starting to accommodate the use of bitcoin to buy and sell houses. Since bitcoin is an emerging currency, there are limits to the sellers, buyers, and real estate companies willing to deal in bitcoin.
However, selling with bitcoin is indeed possible and grants sellers the opportunity for gains with bitcoin. Buying with bitcoin also offers buyers the chance to consolidate their profits and diversify their investment portfolio.
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