While still unpredictable and controversial, cryptocurrency has soared in popularity over the past few years. Even the National Association of REALTORS^® (NAR) predicts that Bitcoin and other cryptocurrencies could revolutionize the real estate industry in the future. So, how can you navigate home sale transactions for clients with cryptocurrency? Here are some tips.

Can You Purchase Real Estate with Cryptocurrency?

Your clients may ask, “Can I use cryptocurrency to buy a house?” The answer will depend on what is legal in your state. However, in most parts of the U.S., it is not uncommon for homebuyers to use their crypto as collateral for a home loan. Some banks will lend up to 50% of bitcoin value, and other crypto lenders such as BlockFi, Celsius, and Unchained Capital may offer home loans at varying rates.

Of course, homebuyers can also cash out their blockchain currency and use the funds toward a downpayment. If your clients choose this option, advise them that lenders sometimes flag large cash deposits before approving a home loan.

When you help your clients use cryptocurrency as payment in a real estate transaction, keep these tips in mind:

• Consult with a legal expert. Crypto-collateralized loans are not available in every state, so advise your clients to consult with a real estate attorney with experience in crypto transactions.

• Communicate with the seller. The homebuyer and seller can negotiate a private agreement that includes cryptocurrency. Of course, as their real estate agent, you would need to be comfortable accepting your commission in the form of cryptocurrency. You should also consult a real estate attorney with experience in cryptocurrency transactions unless you negotiate another form of payment.

Cryptocurrency may be the future of banking and real estate financing, so it is essential to stay current on your state's latest legislation concerning crypto transactions. Do your research and keep lines of communication open to maximize crypto value in a real estate transaction.

Contact a real estate cryptocurrency professional before making any financial decisions. The material in this article is for your information only and is not intended to be used in lieu of seeking additional consumer or professional advice.

Reference to any specific brand, product, or service does not constitute endorsement by ORHP. ORHP does not receive compensation for providing third-party links.