Current Trends Affecting the Value of Real Estate: Cryptocurrency
If you plan to buy or sell real estate in Ohio, West Virginia or Western Pennsylvania using cryptocurrency, you aren’t alone. A number of Bitcoin millionaires come to a closing table with an alternative payment of choice, one of the current trends affecting the value of real estate. Some people inherit cryptocurrency. To avoid watching a crypto bubble burst, many savvy beneficiaries opt to buy a home in the Western Pennsylvania area. According to an article by forbes.com, cryptocurrency is creating a frenzy all over the country including Ohio, Pennsylvania and West Virginia. People find ways to capitalize on a new “gold rush.” Experts offer a few practical suggestions for potential homebuyers and sellers planning to use cryptocurrency such as Bitcoin.
Finishing our homework
Before buying or selling with digital currency, do your homework. Real estate investors practice by using verified exchanges such as Binance and Coinbase to buy and sell Ethereum and Bitcoin. Make sure you have real world experience and practice using alternative exchanges before buying or selling a home with cryptocurrency.
Figuring out the escrow challenge
When it comes to dealing with escrow, two main options include converting cryptocurrency into cash or using a crypto-to-crypto transaction. Some people set up a crypto payment processor. The best idea is to convert Bitcoin or other currency into a USD wire transfer to make the closing process smooth. Some title companies understand blockchain technology but others are not set up for crypto-to-crypto transactions so check ahead of time.
Buying a home for 18 bitcoins
One report by forbes.com showed the average home in American would sell for about 18 Bitcoins. Of course, homes in some prestigious parts of Pennsylvania, West Virginia and Ohio sell for more than the national average. Real estate agents all over the country have conversations with clients about using cryptocurrency as part of their real estate transaction. In fact, real estate sellers should expect some clients will make the deal contingent on the sale of cryptocurrency.
Cashing in when the time is right
Young people who want to become first-time homebuyers often cash in their bitcoins to cover costs associated with closing on homes. If you want to sell your home, talk to your real estate agent about mentioning in a home listing that you take Bitcoin as payment. Buying a home with the proceeds from a Bitcoin sale is a prudent plan, especially to diversify. If you feel as though you won the lottery with your Bitcoin investment, consider buying a dream home. If you feel strongly that bitcoins will continue to increase in value but need the money to invest in a home, use only a portion of your total stash. Again, some buyers pay for entire homes with bitcoins, while others only cash out enough for the down payment. Before heading to closing, find out from your real estate agent about estimates for closing costs.
Buying or selling a home in the new era requires savvy real estate investment advice. Work with an experienced lender, real estate agent and title company for the best outcome. Your real estate agent will work out any details such as contingency plans and timelines. Using cryptocurrency is simply an alternative way to pay for a home. It’s still important to make sure the home you buy is a good investment itself. Discuss your lifestyle, future plans and needs with your real estate agent to zero in on a home with the best layout, square footage and architectural style.
At Kaufman Realty & Auction, we help people sell their home at auction. With so many newly-minted young Bitcoin millionaires, it’s possible to sell your home through a non-traditional transaction. For more tips about how to buy or sell with Bitcoin, please contact us.
At Kaufman Realty & Auctions, we enjoy providing Pro-Tips and insights for real estate owners in Ohio, West Virginia and Western Pennsylvania. Properly cared for real estate can be an excellent investment as well as provide enjoyment that goes far beyond dollars and cents. If you have questions about what is best for you real estate please contact us.
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