If you were wondering, it appears bitcoin really is a ‘thing’. The Michalski-Fujita team at RE/MAX Estate Properties just recently closed escrow on the sale of 1400 21st Street, a brand new 5-bedroom, 4562 sqft Modern Farmhouse for $3,225,000.
What made this sale notable was the buyer paid for the home in bitcoin, the nascent cyber-currency that seems to be gaining traction as an alternative medium of exchange.
In California, there has only been one other sale of residential real estate using bitcoin, to our knowledge, and that was the sale of a developable lot in over two years ago in Lake Tahoe for $1.6 million.
So for now it appears we hold the residential real estate bitcoin record in California.
Bitcoin is unique because it doesn't 'exist' in the real world (you can't hold bitcoin in your hand and there is no governmental body to back this currency). Rather, it exists solely in the ethernet. Of course, this left our sellers a little wary but there are exchanges that will immediately convert the bitcoin to cold hard cash, which was done here.
As for the buyer, well, all we can say is timing is everything as the value of his bitcoin appreciated massively between the time we went under contract and the close of escrow date.
For more about this home, click here.
For more about this bitcoin transaction's back story, click here.