If you are looking for real world real estate (with all of its inconveniences like a breathable atmosphere and physical shape) there are several options to buy such as being ready to sell. While the Metaverse doesn’t have brokers to sell virtual real estate yet, the process isn’t much different.
The Metaverse gives you options when buying real estate, depending on how you want to do business. Let’s talk about what a real estate transaction looks like on the Metaverse.
First, you need a digital wallet
You can’t buy real real estate without money, and the same goes for virtual real estate. You can’t just stick your credit card in a slot; You need a digital wallet to buy the cryptocurrency for the platform you are interested in.
For example, the Decentraland currency, commonly known as MANA (MANA 0.00% ) can be used to buy virtual real estate there, but not on other platforms like The Sandbox. There are a few platforms you can use Ethereum on (ETH 0.96% ), either directly or for exchange in the platform’s currency.
Your digital wallet is hosted outside of your Metaverse and must be linked to your Metaverse account before you can start building your virtual real estate empire. Some platforms may specify the wallet you need to use; others may be more flexible. Whatever you do, write down the seed phrase that was assigned to you when you opened your wallet as these are difficult (if not impossible) to recover and losing your wallet means you will lose your fortune forever.
Next, choose your buying platform
There are several ways to buy land in the Metaverse. You can choose to buy your property directly on a specific Metaverse platform, or you can go through one of the many popular third-party platforms that offer buying and selling opportunities.
Shopping within the metaverse is nice because you get a good feel for what you are buying, including the neighbors and possible amenities nearby. However, if you haven’t settled on a metaverse and are trying to find an offer in your price range, it can be quite a chore to keep platform hopping until you land on a suitable one.
In that case, one of the third party platforms like OpenSea or NonFungible.com is a great option. You can view virtual lots on multiple platforms (offers may vary between third party providers) as well as the offer price in your local real currency. This can be an easier way of understanding how much you’re actually spending if you’re new to the Metaverse, especially since each crypto coin has its own value regardless of others.
Make an offer and complete it
If you’ve bought physical real estate before, you know that this next piece can be a real nightmare in the real world. In the virtual world, that’s almost not a thing. When you’ve found a package that you like and that is on your budget, just click on it and buy it. On some platforms, such as Decentraland, you can also submit an offer for the property within the platform and the owner will either accept or decline your offer.
Either way, once you’ve chosen your package, topped up your wallet and settled on a price, the rest is literally done by clicking the “Buy” button. The blockchain funding only takes a minute and the transaction is recorded with an anonymous identifier on your wallet, indicating that you now own the NFT title on the property. Your property is complete. It’s all yours as long as you don’t lose your digital wallet where you keep your NFTs.
What about reviews in the metaverse?
There are currently no proven formulas for valuing virtual real estate, although some large commercial companies are trying to find out. The thing to note about Metaverse properties is that they are extremely new, extremely experimental, and extremely volatile. Just a few months ago, you could buy lots for a few hundred dollars at almost any Metaverse, but today it would take you at least a few thousand to walk in the door.
Since most metaverse don’t have a long transaction history, investing in them is highly speculative. That’s not to say that you can’t win with virtual real estate; it’s just a very new type of asset, and we haven’t figured out what the price tolerance is or how much interest there will be in any particular metaverse.
There is always the risk that a metaverse property will go to zero because the platform is abandoned. Hence, it is important that you keep this in mind when purchasing virtual real estate. Unlike physical real estate, where if everything else goes wrong, if a Metaverse platform collapses and goes offline, you still have a piece of land, you don’t even have the land.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – including one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.