You Can Sell Your House As An NFT Too

You Can Sell Your House As An NFT Too
Jonathan Hobbs

over 1 year ago1 min

In today’s higher mortgage rate environment, people are finding more creative ways to sell houses: on October 14th, digital real-estate platform Roofstock onChain sold a three-bedroom home in South Carolina for $175,000 on NFT (non-fungible token) marketplace OpenSea.

The house sold for $175,000 in USDC stablecoins, a cryptocurrency that tracks US dollars one for one. USDC is a type of “ERC-20” token, meaning you can send it back and forth on the Ethereum blockchain – just like you can with ether. Once the new homeowner clicked the final “buy” button, an Ethereum smart contract got to work behind the scenes: the USDC moved to the seller’s Ethereum wallet, and a unique NFT (an “ERC-721” token) holding the ownership rights to the house moved to the buyer’s wallet. This all happened in a span of minutes – and for about $10 in transaction fees. Compare that to the roughly $10,000 that would usually be paid in listing and agency fees on a house at this price point.

As for the mortgage, that came from crypto lending platform USDC Homes, which offers stablecoin loans of up to 80% of a “tokenized” property’s value by taking bitcoin, ether, or USDC as collateral. The process involves a loan application, an underwriter fee, and the usual credit documents so the lenders know the borrowers are good for it.

We’ll probably see a lot more home sales like this in the future, but don’t expect it to become the norm anytime soon – after all, most people are still skeptical of this strange new technology they call blockchain. That said, it does make a stronger long-term case for investing in the NFT space (more on that here).

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