First House Sale As An NFT On OpenSea

On Oct 23, 2022

A physical house has been sold for $175,000 as an NFT on OpenSea for the first time marking what could be the future trend for the real estate industry.

The 3-bedroom house located in Columbia, South Carolina, features a large living room, a dining area, a galley-style kitchen, and a walkout patio. The sale was possible thanks to Roofstock onChain. This NFT marketplace simplifies how single-family residential properties are bought, owned, and sold.

The sale took place last weekend to one Adam Spipakoff, who received an NFT to his Ethereum address to prove ownership. Roofstock sees this as the first of many in what should become the norm in the near future, given the simplicity and many benefits accompanying NFT ownership.

This house sold as a real word NFT for $175,000 over the weekend.
The way it works:
– The LLC takes ownership of the property
– They tokenize the property & mint an NFT that represents ownership of the house
– Holding the NFT gives you ownership of the actual house pic.twitter.com/fuUl3oGCHx
— unusual_whales (@unusual_whales) October 18, 2022

The process is simple, as the LLC of the company that wishes to make the sale will visit the Roofstock platform and tokenize the property by minting an NFT representing ownership of the house. Whoever purchases the house receives the NFT as proof of ownership.

NFT On OpenSea Have Become Popular

It’s another use case for NFTs, which have gained popularity over the last few years thanks to how they have empowered various factions such as artists, musicians, creators, and many other parties.

NFTs, at the basic level, represent digital smart contracts that prove ownership of a digital or physical item in this case. They are possible thanks to blockchain technology that allows for the creation of decentralized systems that boast incorruptible and immutable databases.

Among the industries that stand to benefit a lot thanks to the technology is the real estate sector, where buyers can be connected to sellers directly without the need for intermediaries, which cuts costs and speeds up the process.

The house sale as an NFT on OpenSea might be the first but expect to see more similar sales. At least that is the sentiment of Geoffrey Thompson, Chief Blockchain Officer at Roofstock, who sees many benefits of tokenizing property as the process allows for frictionless transactions, simplifies things, and encourages transparency.