Million Dollar Listing agent Ryan Serhant sees way more deals that are paid in crypto in 2021 than last year. A lot of people increased their net worth in the crypto market and decided to diversify and invest a portion of their wealth into real estate.
An unusual observation is that up to 70% of the purchase price is paid in crypto, and only 30% are financed with a traditional loan.
Some multi-million dollar deals are even fully paid for in cryptocurrency and the market is expected to see more of these deals.
Eventually these transactions are supposed to be done between crypto wallets without the involvement of traditional financial institutions.
According to Serhant, “we haven’t advanced technologically in the way that we buy and sell real estate … we still sign contracts on the internet with a PDF signature, and then email it the same way we did in 1996.” NFTs could replace real estate contracts, and all of the information would live on the blockchain.