Nearly ubiquitous in Western Europe for some time now, crypto-currencies such as Bitcoin are beginning to take center stage in the US. Cryptos are front page on news outlets, in conversations, and, increasingly, in investment portfolios and financial transactions.
With companies such as Overstock, Microsoft, Steam, Tesla, Virgin Galactic, Square, Stripe, OkCupid, to name just a few, and non-profits such as Save the Children and Wikipedia accepting payment and contributions from crypto-currencies, crypto transactions in real estate, already starting, are likely to become common place.
Here are seven things agents ought to consider when dealing in the world of crypto-currencies and real estate…
1. Take time to learn about and understand the technology behind crypto-currencies. As technology plays an increasingly important role in real estate, crypto-currencies are yet another element in this “disruptive” sea change.
2. The bulk of US crypto-real estate deals has been done with cash buyers, not mortgage buyers.
3. The heaviest user demographic of crypto-currencies is male, European, 25-35 years old.
4. Since crypto-real estate buyers are European, it is paramount to partner with an international real estate company. An example, RE/Max London.
5. Tap into this European demographic by investing marketing dollars to reach overseas buyers as the awareness of crypto-currency transactions grows in the US.
6. Agents must be flexible/fluid themselves and must cultivate a network of flexible/fluid partners (title companies, etc.) in order to execute a crypto transaction.
7. Because the valuation of crypto-currencies changes daily, seek out payment service providers ready and willing to convert cryptos into dollars.
Crypto-currencies are trending now…soon they will become standard operating procedure in every business transaction including real estate. The time for real estate agents to get on board is now.