TAMPA, Fla. — There's a new way of buying a home that's making its presence known in the Tampa Bay area. While many prospective buyers have seen properties come and go on the traditional market, there's some hope in the digital space.
A Tampa condominium will soon be up for auction, and it could become the second property in the U.S. to be sold as an NFT.
According to a listing on Propy, a real estate transaction platform, the condo is located in Hyde Park in South Tampa. It's one bedroom, one bath and has a starting price of $185,000.
Propy Vice President Adam Brown says, unlike traditional home sales, the process of buying this home requires the use of any verifiable cryptocurrency, like Bitcoin or Ether. This method also cuts out any middlemen. According to Brown, all inspections of the property are completed and verified before the listing can be made. All Propy does is take a fee of less than one percent of the final sale.
But, how does it become an NFT? Well, Brown says Propy creates an LLC for the property and a smart contract, turning it into an NFT.
NFTs, or non-fungible tokens, are unique and irreplaceable digital assets purchased through online transactions. What makes them unique is that ownership of an NFT is stored in the blockchain where anyone can verify its authenticity.
For Brown, that means the process of buying a home can be much more transparent.
"The traditional model now where a house in your neighborhood might get 20 offers, I never know why my offer wasn't picked," Brown said.
"Was it because my house was contingent? Was my offer not high enough? Was it because I wasn't a cash buyer? And so, the transparency that this brings to the process is absolutely best for the homeowner."
Propy has been the mastermind behind this new way of buying a home. So far, the company has sold two properties as NFTs. One apartment in Ukraine and a home here in the Bay area. In February, a Gulfport home sold for 209 Ether, which is the equivalent of $631,790.
The Hyde Park condo goes to auction on April 7. You can check the listing here.