Tips to Buy a House with Cryptocurrency in 2022
Buying a house with cryptocurrency is an innovative way of purchasing real estate, but it's not without its challenges. Nevertheless, many people are interested in using crypto to buy their first home, and there are many benefits to doing so. But if you're planning to purchase your dream house with cryptocurrency, keep reading for important information about how to do so safely and successfully.
A big part of buying a home involves setting up an escrow account through which the funds will be transferred from the buyer's bank account into the seller's bank account after closing. An escrow service ensures that neither party can pocket the money before closing on their end of the deal (i.e., signing papers acknowledging that both parties agree on all terms).
If something goes wrong during this process, for example, if it turns out that one party doesn't have enough funds for their share, then your escrow company will help resolve any disputes between those involved. So everyone gets what they deserve at sale time!
With cryptocurrencies being such a new technology, many people are still unsure how to use them in everyday life situations like buying houses or cars or even groceries at supermarkets like Whole Foods Market Inc (WFMI). The article guides you on how to do it safely.
Research the Legal Implications.
- Crypto is not legal tender. Unfortunately, this means that you won't be able to use your cryptocurrency as a form of payment for goods and services.
- The government does not back crypto. Any central bank or government does not back Bitcoin, Ethereum, and other cryptocurrencies. They are decentralized digital currencies based on distributed ledger technology (DLT).
- The government does not control crypto. Any governing body doesn't control the supply of cryptocurrencies; instead, they rely on miners who verify transactions through computer processing power to create new coins or add blocks to the blockchain.
- The government or banks do not regulate crypto. It exists entirely outside of these institutions' purview, which means it has no central authority to appeal to if something goes wrong with your investment. But some countries have issued regulations around how ICOs operate within their borders because there's so much money flowing into them right now!
Convert Your Crypto to Cash.
Now that you've explored all the different ways to buy a house with cryptocurrency, you may wonder how you can convert your crypto into cash. Here are a few tips:
Some exchanges offer direct exchange from crypto to fiat, but there are many more that do not. If this is the case for your chosen cryptocurrency exchange, it's time to look for an alternative solution. One option is peer-to-peer trading platforms like LocalBitcoins and Paxful, where people can sell their bitcoins directly without going through an intermediary like Coinbase or Binance. These platforms have been around since 2013 and have tens of thousands of users worldwide, with active listings in every major city around the world (including New York City).
Another option is using ShapeShift, Changelly, or OKX, allowing users to convert between different cryptocurrencies within seconds rather than hours or days as other exchanges require.
Hire an Escrow Service.
An escrow service is a third party that holds the money for the transaction until it's complete. It can be useful for both parties, as it helps them protect themselves from fraud, scams, and theft.
Find the House You Want to Buy.
You've found a house you want to buy. Now it's time to get down to the nitty-gritty of buying it.
Get an inspection. An inspection will tell you whether or not there are any problems with your new home that need to be addressed before closing, such as mold and radon gas issues. It will also let you know if the house has been properly maintained, a must for anyone who wants their investment to last over time!
Get a lawyer and/or real estate agent (and maybe a mortgage broker). It is where things start getting complicated, so make sure you have enough funds set aside for these costs before proceeding here!
- Get insurance for both yourself and property damage caused by natural disasters like hurricanes & earthquakes;
- Then get homeowner's insurance specifically focused on protecting against fire or theft/vandalism damage;
- Finally, consider adding flood insurance since flooding often accompanies hurricanes but isn't covered by normal homeowners' policies.
Decide on a Payment Method.
- Pay with crypto: This is the easiest option, but you'll likely pay a premium for the privilege. Many sellers will accept it as payment, even though they're still not aware of its value, so you may have to do a bit of convincing.
- Pay with cash: If you don't have any cryptocurrency and/or don't want to be known as a Bitcoin hater, this is your best bet. Just make sure to bring plenty of it. It's a good idea to bring enough that you can cover all closing costs (including taxes) in cash alone if necessary!
- Pay with crypto and cash: Most sellers will be willing to accept both traditional currency and digital money if there's enough for both sides. This way, everyone wins! However, be warned that some sellers may try charging extra fees for accepting multiple forms of currency. So only do so if you have an abundance of extras laying around at home (or at least know someone who does).
- Pay with crypto and crypto: Obviously, this is ideal since it means no one loses out; however, most homeowners aren't willing to make such an unconventional transaction unless absolutely necessary.
Fill Out the Paperwork.
You've done the hard part of researching and choosing a home, so it's time to sign on the dotted line. There are three main documents you'll need to sign:
- A purchase agreement (for buying a house)
- An escrow agreement (which governs how disbursements from your down payment are handled)
- A final closing statement (showing how much has been paid, who will get what at closing, etc.)
Cryptocurrency Can Be Used for All Sorts of Things, Including Buying a House.
You can use your cryptocurrency to buy a house. (And if you're thinking about it, the time is now.)
Buying real estate with cryptocurrency seems like a no-brainer: why would anyone ever want to part with their crypto? For starters, cryptocurrencies can be converted into cash easily and quickly.
It's also safer than keeping funds in an account that could be hacked or otherwise compromised.
And finally—and perhaps most crucially—it's possible to make money by investing in cryptocurrency while holding onto some of your coins and trading them at reasonable times during the ups and downs of market prices.