Miami Realtors Bullish On Accepting Bitcoin, List $3.5 Million Condo
Eric Fernandez, owner of Sol/Mar Real Estate, recently listed a $3.5 million penthouse condo at the Blue Diamond in Miami Beach, Fla. saying the owners would accept payment in bitcoin or Ethereum, according to the Miami New Times.
Fernandez believes it is only a matter of time before bitcoin acceptance for real estate purchases gains popularity.
Fernandez is not the only real estate agent who expects more homes to be bought with digital currency. Bitcoin is achieving cult status for international buyers. Some believe Miami will lead this trend.
Why Miami Will Lead
Realtor Stephan Burke, who listed a Coral Gables mansion for sale in August, saying the seller will accept bitcoin, noted in a recent op-ed in the Miami Herald that Miami is an ideal market for bitcoin since it offers investors from South America, Canada, Asia and Russia a way to quickly purchase property.
In August, Mike Komaransky put up a seven-bedroom house in Miami for $6.4 million, accepting payment in bitcoin. But because so few homes have been bought using bitcoin, realtors have no guidance how such transactions will work.
Bitcoin Presents Challenges
Fernandez said accepting payment in bitcoin for real estate is challenging. Money is held in escrow in traditional real estate. But a buyer cannot go to Bank of America or Wells Fargo and deposit bitcoin.
Bitcoin’s changing value also presents a challenge to real estate transactions. One individual made more than $1.3 million by using bitcoin on a real estate purchase in Texas due to changes in value. Fernandez nonetheless thinks sellers will see potential real estate transactions as a way to bet on the future of bitcoin and Ethereum.
These individuals are investors searching for emerging markets, Fernandez said, and they believe cryptocurrency’s use will grow. Fernandez said he is confident he will be able to navigate the logistics of working deals among the buyers, sellers and lenders.