Bitcoin Accepted For Sale Of Two San Diego Area Luxury Homesbr>
San Diego financial and advisory investment firm Canter Companies has put two multi-million-dollar properties for sale and will accept payment in bitcoin.
Sales using cryptocurrency are gaining momentum among real estate investors in the US and internationally. Several companies have begun mining the field, leveraging blockchain’s ability to record immutable details on transactions.But many are wary of transacting in bitcoin, owing to its volatility.
The first San Diego area home, located at 6653 Neptune place in the city, is currently listed for sale at $11,800,000, which would which comes to approximately 1112 bitcoin based on today’s price. The second home is located 1257 Silverado in nearby La Jolla and is priced at $7,995,000. This would come to 753.93 in bitcoin today.
Block Tribune had a few questions for broker Andrew Canter (who owns the $11M home) and the seller of the home listed for $7.995M, Alan Ezier.
BLOCK TRIBUNE: Why use cryptocurrency? It is extremely volatile and can swing as much as 20 percent in a day.
ANDREW CANTER: As a company, we think it’s important to embrace change and adapt as the world evolves. As the cryptocurrency market continues to expand with new high-net worth individuals, there is a growing need for some of these investors to diversify their assets. Offering real estate for bitcoin opens a different opportunity for this new class of wealthy that could help decrease volatility.
ALAN EZIER: Cryptocurrency is a global currency that can and will attract a different audience than traditional fiat currency. Volatility can be hedged when the time comes to a transaction.
BLOCK TRIBUNE: How will this be handled contractually?
ALAN EZIER: Real estate has its traditional methods of changing title on a property. The only difference is the currency at which will be accepted.
ANDREW CANTER: Since bitcoin has been so volatile it’s important that we take the proper steps to manage potential risks. For that reason, we will write a futures contract to lock in the bitcoin value at the time of the sale. We’re working with Case escrow here in San Diego to complete the sale and discussed the process at length with attorneys to make sure we’re taking the appropriate steps in this new space.
BLOCK TRIBUNE: How will this be reported to the government records-keepers?
ALAN EZIER: Each party (buyer and the seller) will need to record their basis and the sales price to the appropriate government tax authorities. Whether it is an exchange of gold, real estate, cash or crypto nothing changes when it comes to the reporting.
BLOCK TRIBUNE: Transferring large sums is still a somewhat tricky business with crypto, as one number off can mean disaster. Why take this risk?
ALAN EZIER: That is the misconception of Crypto. If you provide the buyer a wallet address and they use that wallet address it is no different than telling a buyer to wire the fiat currency to a bank account NUMBER. Transactionally, the process can happen faster and cheaper than traditional escrow, especially if the buyer is international.
ANDREW CANTER: The legal steps we’re taking will help decrease the volatility risk since we’re locking in a number the buyer and seller agree upon at the time of sale, regardless of price fluctuations. If someone is willing to offer us bitcoin, we want to make sure we take the steps to make it work as if it were any other currency.