The first house in the U.S. was sold as a non-fungible token (NFT) on Thursday, February 8th, 2022. In Austin, Texas, the house is a one-bedroom home with 700 square feet of outdoor space and a private pool.
According to a press release, the house was sold for $700,000 to an anonymous buyer, who will also have the option to stay at the property for up to seven days per year. The sale signals a new way of selling real estate and marks the first time a house has been sold as an NFT.
The NFT in the Real Estate market is a game-changer. The potential of this new concept can change certain areas such as:
NFTs Can Eliminate Fraud in the Industry
There is a lot of dishonesty in the real estate market. Fraudsters frequently alter or erase information from paperwork proving ownership of an apartment complex, such as the identities of past owners or a history of delinquent mortgages.
The new owners face enormous challenges as a result of this. Many advantages for the sector may be seen in the structure of NFTs, which removes human intervention in any transactions.
As a first step, all real estate paperwork, property rights, and prior owners’ names will be scattered across multiple computers worldwide. Only the data owner has access to the cryptographic key needed to assemble it from disparate parts of the distributed network into its original form.
Secondly, all activity on the network that is tied to this information is logged and archived. Transactions that have already taken place cannot be deleted, and data that has been edited or changed in the past is carried over into each subsequent transaction.
Finally, the information that has been disseminated is immutable. The industry benefits from more secure transactions, so it stands to reason that safer transactions lead to better bargains.
NFTs Will Attract More Investors through Fractional Ownership
Real estate NFTs are used to construct platforms where sellers can market their properties for what is known as fractional ownership by investors. Although it’s nothing new in the currency world, it’s a relatively recent development in the crypto sphere.
Cryptocurrencies are also more affordable for investors, as it is far cheaper to keep assets safe on a blockchain.
Tokenized real-estate shares can also increase potential clients to invest. Traditional investors, of course, enjoy this industry because it is recognized to be one of the most stable. Still, a new generation of crypto-first investors may want to invest in real estate rather than buy shares.
The flexibility of blockchain-based real estate transactions is evident even if the regulations governing this investing strategy are not yet clear. Selling and buying homes can take place over long distances between people.
The U.S. real estate market might be sluggish, but an outdated house can now be sold as a non-fungible token (NFT) in the cryptocurrency world. This is a breakthrough for the NFT space and cryptocurrency generally, as this sale represents something new: the first time real property has been tokenized and sold in this way.