Bitcoin might buy a cup of coffee, a car\u2014or potentially a house. But when cryptocurrency enters a real estate transaction, REALTORS\u00ae need to make sure the deal doesn\u2019t become more complicated than the technology behind it.<\/p>\n\n\n\n
Crypto transactions remain less common than traditional financing, but they can create some very real challenges for buyers, sellers and their agents. Unlike cash sitting safely in a bank account, cryptocurrency can swing dramatically in value. That creates an important question: What happens if the buyer has enough crypto today, but its value drops before closing?<\/p>\n\n\n\n
For sellers, one way to reduce that uncertainty is to request proof that the buyer has sufficient funds or provide documentation showing they could complete the purchase without relying entirely on cryptocurrency. A larger earnest-money deposit may also provide additional reassurance.<\/p>\n\n\n\n
Buyers have their own concerns. Converting cryptocurrency into traditional currency can take time, potentially creating delays when funds need to be available for settlement. One way to make the transaction smoother is to convert crypto to cash before making an offer or entering into a contract, when practical.<\/p>\n\n\n\n