It seems that everyone is talking about crypto these days. As inflation soars, people are looking for a form of currency as stable as gold. While gold still reigns as the currency to rely on in unstable times, crypto is still getting its fair share of fans. And within this current market where home inventory is low, and demand is high, accepting crypto as a form of payment could be just as valuable as cash if you want to sell your house fast.
Advantages of Sellers Accepting Crypto
As crypto continues to disrupt many industries, one of its recent feats has been in the real estate industry. Although there may have been some opposition to using crypto in this industry, changes in recent years have encouraged the use of crypto in real estate transactions. As a matter of fact, many sellers and their agents are advertising their acceptance of cryptocurrency as a medium of exchange in the home selling process.
Some accept cryptocurrencies like Bitcoin to cover the entire cost of the sale. Or they may split it between cash and crypto. Although most people may want to play it safe and stick to traditional ways of selling a home, others may want to consider accepting crypto to sell their homes. For one, it could help you close on a transaction much faster. As with all-cash buys, many intermediaries are cut out, making the transaction shorter and easier.
How Crypto Benefits Buyers
Sellers aren’t the only ones who benefit from cryptocurrency in a real estate transaction. Real estate buyers who can strike a deal with a seller to purchase with crypto can also help. For instance, using crypto to make a purchase gives you more buying power if the seller accepts cryptocurrency as a form of payment. Additionally, if you have enough in a cryptocurrency like Bitcoin to purchase a home, you won’t have to qualify for a mortgage. If the seller is on board with you purchasing their home using Bitcoin, you can speed up the real estate purchase.
If you can’t get the seller to agree to purchase their home using Bitcoin or some other cryptocurrency, you can always trade it in for cash. Keep in mind that when you realize value on cryptocurrency, this subjects you to pay a capital gains tax for using the crypto to purchase real estate. Also, it is a good idea to keep a paper trail throughout the process to protect yourself and the seller. Working with a reputable tax expert may also be a good idea, particularly if you have to cash in cryptocurrency to complete the transaction.
Overall Advantage of Crypto in Real Estate Transactions
Sellers advertising that they accept crypto is gaining traction in regular real estate sales. However, it is more common to use this tactic in high-end real estate transactions. But as real estate becomes more digitalized, more real estate agents will start to research the benefits of such transactions. One advantage for agents, especially in the high-end market, is that they don’t have to wait a week or more for international buyers to purchase. Buying a house with a cryptocurrency like Bitcoin can have the transaction completed quickly, sometimes in minutes.
Additionally, most crypto transactions, particularly those that are all crypto, don’t have to rely on intermediaries to complete the transactions. So, agents won’t have to be at the mercy of banks, lenders, and others who may not only drag out the process but could also choose not to fund the deal. As a result, crypto could help transactions close more seamlessly without falling through somewhere in the process.
Conclusion
With so little inventory available in the current real estate market, depending on intermediaries can cause you to lose out on an opportunity to get a house. Having another option, such as purchasing with cryptocurrency, allows you to bypass the intermediaries, whether you are a seller or a buyer. Cryptocurrency provides another outlet that can help speed up real estate transactions so that you can sell or purchase a house as fast as possible. As a result, it is getting much more interest from buyers, sellers, and agents.
References
https://www.cnn.com/2022/04/27/investing/gold-bitcoin-investing/index.html
https://www.homelight.com/blog/fastest-way-to-sell-a-house/
