Christie’s International Real Estate is making waves in the luxury market by becoming the first major US brokerage to offer a dedicated team for crypto real estate transactions. This means they’re handling multi-million dollar home sales where buyers and sellers use Bitcoin or Ether.
A Billion-Dollar Crypto Portfolio
This new team, made up of legal experts, crypto analysts, and transaction specialists, already manages over $1 billion in listings. We’re talking beachfront Malibu mansions, stylish Palm Springs homes, and even an $18 million Joshua Tree modernist home owned by film producer Chris Hanley. Hanley’s decision to accept crypto highlights the appeal to a new generation of buyers who value speed and discretion.
Privacy in the Digital Age
Many high-net-worth individuals already use trusts and shell companies for privacy. However, crypto offers an additional layer of anonymity, making it attractive to celebrities and tech moguls who want to keep their living arrangements private. Christie’s has even facilitated deals where buyer and seller never met in person.
Navigating Volatility and Regulations
Crypto’s price volatility is a challenge. To mitigate risk, Christie’s uses escrow accounts and real-time price feeds to protect both buyers and sellers from overnight market swings. They’re also exploring crypto-collateralized financing options with major banks. While the Federal Housing Finance Agency is looking into how to incorporate crypto into mortgage risk assessments, widespread adoption of crypto-backed mortgages is still a ways off due to regulatory hurdles and bank concerns about price fluctuations and money laundering. For now, most buyers will stick with traditional financing methods.