NFTs are ephemeral. People are spending money, sometimes millions of dollars, on digital items that exist only in ones and zeroes. But a California realtor is adding a physical component that carries more traditional value: a house.
Shane Dulgeroff plans to offer an NFT—non-fungible token—featuring a piece of artwork from artist Kii Arens, showing his vision of the home located at 221 Dryden St., Thousand Oaks, Calif. Whoever tops the bidding, which starts at $100,000, will get the home as well. The auction begins April 9, starting at 3 p.m. PT.
As if the NFT market weren’t hot enough right now, there’s also a run on houses, as interest rates have dropped over the past year. The Dryden Street home last sold for $746,000 in August of 2020. Zillow estimates its worth at $810,000 now.
It’s a four-bedroom, two-bath property of 1,696 square feet. Amenities include a pool, firepit, and view of the San Gabriel Mountains. It’s built with renters in mind, divided into a pair of two-bedroom, one-bathroom units, which Dulgeroff says collectively generate more than $60,000 in rental income each year.
NFT sales, while they’re baffling to some, have been red hot lately, but thus far they have not included real-world incentives for buyers. Digital artist Beeple sold an NFT of his piece Everydays: The First 5,000 Days for $69 million earlier this month. Weeks later, he declared NFT art was “absolutely” in a bubble.
Other notable sales include Elon Musk’s tweet/techno song about NFTs, standing at $1.1 million, and Twitter founder Jack Dorsey’s sale of the first tweet ever, from 2006, for $2.9 million.
Dulgeroff’s offering might be the first to come with a real-world house, but it’s not the first NFT home. One called “Mars House” sold last month for over $514,000.
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