Tampa Bay home auctioned off as first real estate NFT | News

Nonfungible tokens are homing in on a new market.

A home in Florida could be the first house sold as an NFT. The four-bedroom house, located in Tampa Bay, will be put on the market by a local realtor as an NFT on Tuesday. It will have its property rights minted as a digital token and sold for a minimum bid of $650,000.

“It’s an exciting venture into what possibly could be the future of real estate,” Amy Heckler, the president of Heckler Realty Group, told WTSP.

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Leslie Alessandra, a local real estate investor and the founder of cryptocurrency company DeFi Unlimited, is selling the home in partnership with real estate tech company Propy, according to the listing. The property rights will also be accompanied by an NFT of an indoor mural designed by local artist Derek Donnelly.

She said she transformed the home’s certificate of authenticity into an NFT, which she achieved by turning the ownership into a limited liability corporation. Doing so would, according to Alessandra, simplify the property sale process so that someone could theoretically sell a house with just a Venmo transaction.

“You’re essentially just selling a company, and a company owns that house,” Christopher Vasilakis, a local real estate and virtual reality expert, told the Tampa Bay Times.

The NFT expedites the sale process by placing property ownership with the LLC, which handles paying any relevant property taxes, according to Vasilakis. The NFT allows the individual to claim to own the company and the property by extension.

“There probably will be ways to sell the property and then throw in crypto-backed mortgages,” Vasilakis said. “But we’re just not at that moment.”

The relative newness of NFTs makes it challenging to determine whether this particular process will be viable in the long run, especially considering the volatility of cryptocurrencies like Bitcoin, the real estate agent said. It is also unclear whether the value of a house tied to an NFT would also be affected by that same level of volatility.

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NFTs are special images or digital items that are coded in a blockchain as proof that someone owns the rights to them. The NFT market exploded in 2021, with hundreds of millions of dollars invested into purchasing these crypto tokens.

But the growing market has been a source of controversy in recent days. A company claiming to sell NFT versions of songs temporarily shut its website down after several artists reported that their music was put up without consent.

Original Location: Tampa Bay home auctioned off as first real estate NFT

 

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