For centuries, real estate auctions have been a part of the trade in the real world. Recently, with the boom of the virtual world and the Metaverse, people have been actively buying virtual real estate too. It means they have homes, gyms, building complexes, etc., in the Metaverse.
But in a surprising turn of events, a real home is set to be auctioned as a non-fungible token, i.e., an NFT. While there is no restrain to what can be passed as an NFT and become a digital asset, a real-world home selling as a digital asset instead of a real static asset is unheard of.
The Gulfport home
A house along Florida’s gulf coast is set to be auctioned as an NFT. It has four bedrooms, one guest room, three bathing rooms, a kitchen, and a garden suite. Its location alone makes the property highly valuable as the gulf coast has some beautiful sceneries.
The starting price of the auction is kept at 650,000 US dollars. The cost of comparable homes in that area is 700,000 US dollars and above, but the special NFT status of the house may give it an edge over others. The legal documents, the house’s title, and all the documents related to the transfer and purchase of the property will be tokenized. It means that it is not the home that will turn into a digital asset, but its legal documents and certificate of authenticity.
The bidder will buy the legal papers of the house and will get its ownership. The auction will take place in the upcoming weeks.
What the owner had in mind.
Leslie Alessandra, the house owner, will sell the house through her company DeFi Unlimited and their partner Propy. Propy is a real estate transaction firm; it is a decentralized platform that oversees international property transactions.
Alessandra believes that non-fungible tokens are the future, and cryptocurrency will be the future currency for home/ property sales. She also believes that an NFT version of the real estate documents will give full rights to the owner, and the transactions will go smoothly.
On Friday, a launch party was held from 6:30 to 10:30 p.m. at Nova 535 in downtown St. Petersburg, where potential investors learned more about the NFT auction. There was no invitation for the party as interested buyers purchased a “ticket” from the event brite website. This was done to ensure that anyone could take part in the auction.
As of now, two thousand people have registered for the auction, according to Alessandra. The auction for the NFT home sale will take place on February 8th, and the highest bidder will get ownership of the house.
Jarrett Preston, the CEO of Idoneus, found the idea of home as an NFT sale surprising and pleasant. Idoneus is a Swiss-based luxury marketplace platform that uses cryptocurrency to trade unique assets worldwide.
He remarked that Tampa Bay( Florida’s gulf coast city) entering the NFT real estate world is big news as this area is not as advanced as the other parts of the world like Hong Kong or London.
He expressed his happiness about the fact that the owner from Tampa Bay ventured into NFTs and stated that major real estates worldwide “will be actively transacting in this manner in the next five to six years.”
He gave figures of digital transactions going up by 50% every year and how, in 6-7 years, they will dominate the area of NFT real-estate transactions too.