This NFT has a real-world component: A 4-bedroom, 2-bathroom house

By Chris MorrisFormer Contributing Writer
Chris MorrisFormer Contributing Writer

    Chris Morris is a former contributing writer at Fortune, covering everything from general business news to the video game and theme park industries.

    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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