NFTs Enter the U.S. Real Estate Market

There’s a new entry into the US real estate market, and this one involves NFTs, or rather non-fungible tokens. Cryptocurrencies are nothing new, but they are starting to gain some attention when it comes to the nation’s real estate market.

In one recent example, A Florida home hit auction earlier this year with around 1,500 bidders on an online platform hosted by Propy. The Blockchain startup says it developed the legal framework and smart contracts to make tokenizing doable for real estate in the US.

The deal supposedly cuts down on closing time. The NFT owner is able to own the property through an LLC that actually houses the NFT.  

With traditional real estate sales, the process takes longer and there are some risks. Some say it’s a dated process and new ideas, like this one, could potentially help attract younger investors who want an easier process.

The National Association of Realtors is one of Propy’s backers. According to the CEO of Propy, NFT sales this past December hit $4 billion.

Still, the US regulatory system may not currently be set up to support NFTs and smart contracts. There are also some questions about what role the government plays in crypto.

Another possible holdup has to do with potential homebuyers owning enough ether to make the transaction happen. That’s what needed for tokenized real estate to work.

As for the future, Propy is reportedly looking at some lending options in terms of real estate backed NFTs.