Buyers in Kitsap County will soon have the option to buy real estate using multiple crypto coins. According to a real estate company called Harbor Custom Development Inc. based in Gig Harbor, buyers of real estate will be allowed to use Bitcoin and other crypto coins. The developer plans to make the plan operational from January 24, 2021, in Kitsap County, Washington State.
Real Estate Purchases in Crypto
Those interested in purchasing real estate in crypto can contact the project’s listing broker who will guide them on how to make purchases. Harbor Custom Development Inc. plans to expand the crypto purchases plan to its projects in Texas, California, and Florida. Commenting on the development, the company’s COO, Jeff Habersetzer, said that accepting crypto for real estate purchases was a logical step for the company. He added that it demonstrates their flexible business model, which separated them from their peers.
The company has six projects on the Kitsap Peninsula. These are the Soundview Estates, Broadmoor Commons, and Mill’s Crossing in Bremerton. The rest are the Bridgeview Apartments in Port Orchard, Westry Village in Poulsbo, and the Olympic Sunset View Apartment Project in Belfair. According to the company, the crypto purchase is available for purchases but not rental payments.
How it will Work
According to Jennifer Lang, the director of marketing at Harbor Custom Development, the process will work similarly to a cash transaction. The buyer will work with a listing agent to write up the purchase and sale agreement. A contract will then be sent to an escrow company. The escrow company will then convert the crypto into USD. Once the funds’ transfer is complete, the funds will be sent to the seller and the buyer will own the property. Like any other purchase, the buyer will have to pay transaction fees.
Besides Bitcoin, the company will accept 12 other crypto coins, which are ETH, USDC, XRP, SHIBA INU, DOGE, Binance USD, Wrapped BTC, DAI, LTC, BCH, PAX Dollar, and Gemini Dollar. However, the company states that it could add or remove some of the accepted coins before January 24.
Crypto Real Estate Purchases
The planned crypto real estate purchase by Harbor Custom Development will not be the first crypto real estate in the world. One of the earliest known crypto real estate purchases was in 2018. According to a report by Seattle Times, it took place in Seattle in Tukwila when a 23-year-old engineer bought a three-bedroom house. At the time, he used a combination of crypto coins to make a 10% down payment. The seller received payment in USD after the crypto was converted to USD.
In recent years, crypto purchases in New York, Texas, and Florida have made headlines. Besides real estate, major companies have at one time dabbled in crypto payments. For instance, Tesla at one time announced that it would accept BTC as payment for car purchases.
As the crypto sector continues to mature and crypto prices stabilize, crypto purchases will likely become common. However, they are unlikely to become the norm unless regulation for the crypto sector at the Federal level is created in the US.