Bitcoin Home Sale

Posted on at 8:35 pm by Andrea Webber

Bitcoin Home Sale

 

Sotheby’s International Realty recently announced having facilitated a first U.S. bitcoin home sale on a dollar value of a single bitcoin equalling $3,429.

The sale of the home in Austin, Texas, (price not disclosed) was based on the value of cryptocurrency backed by an online ledger called the blockchain.

One of the first purchases people make with their bitcoin windfall – a home!

Some lenders do allow borrowing against cryptocurrency … careful, though, this is probably one of the most volatile currencies to exist so far, and interest rates are crazy. (Earlier in the month of this sale, a single bitcoin was worth $19,200 …) Bitcoin owners may be able to borrow up to $1 million + with rates between 10% and 14%. Loans will range from 3 months to three years with principal due. Beware!

The process is reasonably straightforward for the homeowner involved in a blockchain currency transaction. The buyer faces all the considerations, sq. ft-wise, tax implication-wise, before trading their coins in for luxury square footage.

The seller will require an attorney and then find a title insurance company to complete the transaction. (No, neither accept bitcoin!) Due to the crazy fluctuations with bitcoin and hedging against potential devaluation, a premium may be a requirement to asking price in our Denver market if bitcoin is a primary funding source for your buyer.

Pitfalls

Due to the volatility of any cryptocurrency, your buyer may not able to follow through with a bitcoin home sale unless armed with a sizeable down payment in cash. Where is the money coming from?

As a Broker, I will get the details of how your home will be passed to you with a copy of buyer lender’s letter and details of any other currency.  Contact me for a no-obligation consultation to help you through the mine-fields of selling or buying in today’s market.

 

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