One of the biggest trends in the world right now is that of cryptocurrency, which has since caused both buyers and sellers alike to look for various methods to help them capitalize on the recent boom. Even though there are warnings that this trend could soon fall flat, cryptocurrency is continuing to make itself known in all sorts of new industries. Additionally, the real estate market is getting itself involved in the trend as well.
Here are three different and useful tips to keep in mind when it comes to either buying or selling a home with cryptocurrency before you even start to consider making that kind of a move:
Obtain Real Practice
Even though cryptocurrency is merely considered to be a fad, it’s also something that uneducated people shouldn’t take too lightly. Always do your homework before you even consider buying or selling a home using something like this. For instance, take the time to understand the market, as well as how it works and exactly what risks are involved.
Get Everything Verified
The old phrase “if it sounds too good to be true, then it more than likely is” is something that most definitely applies to using cryptocurrency to either buy or sell a home. This is mainly because systems that use this type of currency remain vulnerable to being hacked by an outside party. Always educate yourself as much as possible regarding anti-money laundering practices, as well as knowing who your customer actually is. Don’t get stressed at the thought of being cautious and verifying things over and over again, as it’s highly encouraged that you do so.
Set A Real Standard
There are, of course, multiple challenges involved with using cryptocurrency to buy or sell a home. The overall burden will be placed on the buyer due to the fact that this type of currently is very much volatile. This is where you will want to use the price of a home in fiat to help set a real standard. Ensure that the contract you’re using has very specific wording in regards to how the cryptocurrency will be settled at the conclusion of escrow. This means that if a home is priced at $1,000,000, yet the cryptocurrency price is down at the time of closing, the buyer will be required to make up the difference. On the other hand, if the cryptocurrency price rises and a transfer has already been completed, then you should always return the surplus.
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