As we have all witnessed and experienced drastic changes throughout the last two years, there is one change in particular that has created a seismic shift in how we will all move forward into the future.
What is that, you ask? Just the hottest topic in the world right now, the most revolutionary and transformational technology of our time — Blockchain. This everyday life-changing technology behind Bitcoin has not only begun to shape our global economy but in today’s aggressive market, will change how the high-net-worth buyers purchase luxury real estate.
Now, that cryptocurrencies are entering the mainstream in financial portfolios, the floodgates have opened! I’ve had more conversations about digital wallet transfers than ever before, just in the first two months of 2022.
The real estate process is moving quickly toward a fully digital, friction-free transaction, and perhaps to a 100 percent virtual transaction sooner than we thought. Because let’s be honest, the world is drastically changing at warp speed, and priorities also have quickly changed for our global luxury buyers.
More than ever we are seeing savvy buyers needing a quick sale, sight-unseen with heightened security and privacy; therefore, Bitcoin transactions have become highly favorable in this new world of ours. Even with the wild swings and uncertainties, both the seller and the buyer have their own individual benefits and advantages with this new option. They also have power in setting the crypto price for the wallet-to-wallet transfer that both parties are comfortable with, and confident in the agreed value. Sometimes, it could be a two-week average or a two-month average.
In recent discussions, I have advised our megamillion buyers to simply provide their earnest money deposit in a smaller amount of cash funds, first, so we can open escrow and solidify all purchase terms, then these funds can be used to eventually pay closing costs — which is preferred. However, sellers can always offer to pay all of the closing costs out of pocket for the buyer. Then we would wrap up the transaction using the wallet-to-wallet transfer, and instantly the deal is done.
One of the major concerns with online transactions is fraud. Blockchain comes with unprecedented security that minimizes the possibility of compromising personal information or funds being transferred. Blockchain is a decentralized system, meaning you would have to penetrate possibly millions of networks to hack, which is practically impossible.
For them to utilize a cash system that allows a direct transfer of online payments without a go-between changes the entire ball game. Bitcoin gives greater transparency, security and simplifies the process throughout the complete purchasing transaction, and that’s crucial in luxury home sales. Now, individual properties can simply have their own digital identity assigned, with a secure documented and variable chain of ownership instantly! And, eliminating banks and lawyers, also saves money and time, with increased security giving the hassle-free verbiage a whole new meaning and a whole new purchasing power. And, those with newfound Bitcoin wealth are hungry to turn their Bitcoin investment into a tangible asset in real property and this will impact not only the market of 2022 but the entire industry years to come.
“This is not the first time we’ve seen a ‘digital disruption’ and it certainly won’t be the last,” said Leah Marie Monroe, chief marketing officer/owner and co-founder of Red Luxury. “Digital technology has shaken marketing at its core with almost all current marketing strategies subsumed into digital marketing across all platforms, and it was only inevitable that a digital currency would follow. These are exciting times despite the trial and tribulation that also come with great change. But that’s what us marketers do, we thrive where there are challenges; and where there are challenges there is potential for even greater impact.”
In the United States, the IRS has classified Bitcoin as a form of real property. However, it is still in its infancy and time will only tell how much of a significant real estate market disruptor it will be. If the insight from market leaders is any indication, it has the potential to highly influence the digitization of the homebuying process and how luxury real estate will be marketed and sold on a global scale.
This week, my business partner, Leah Marie Monroe, and I have announced the merge from Red Luxury Real Estate into Corcoran Global Living. This is yet another strategic move into redefining the role of a real estate brokerage.
“This new partnership not only provides clients with true international representation with worldwide syndication and an industry network that goes back nearly 50 years, but we can continue our passion as Red Luxury, Vegas’ premier luxury real estate marketing and production agency by being Corcoran Global Living’s preferred marketing agency, working closely with their top talent, allowing us to further empower the creative digital edge that brokerages must lead within this new age. We are honored to align with like-minded and like-hearted individuals to collaborate on the next-level luxury marketing for Vegas’ top brokers and agents of Corcoran Global Living. We couldn’t be more honored and ecstatic for this opportunity,” Monroe said.
Times are certainly changing and all industries are learning to either modify, recalibrate or adjust to the ever-changing advances in technology. Whether that be in marketing, financial institutions, the real estate industry, or beyond.
Michael Zelina is a broker-salesperson and partner at Corcoran Global Living, an independently owned and operated affiliate of Corcoran Group, LLC. Previously, he was the broker/owner/co-founder of Red Luxury Real Estate, Marketing & Productions, a hybrid company encompassing both a luxury boutique brokerage and a marketing agency. Patrner Leah Marie Monroe is the chief marketing officer/owner and co-founder of Red Luxury.
