Should You Buy Real Estate Online?

You can buy almost everything else online, so why not real estate? There are now more than a few online auction sites where you can buy or sell real estate. Consumers who originally may have thought of Ebay as a place to sell random items from their garage can now browse extensive real estate listings .

People often wonder, however, if it's really safe to buy something as high-ticket as a home or parcel of land over the internet. Nightmare scenarios are easy to imagine. You could, for instance, buy a home you've only seen online, only to find when you see it in person that it's about ready to topple over.

The fact is, when it comes to doing any kind of real estate business, whether over the internet or in person, it is absolutely essential to exercise due diligence. Real estate fraud has been an unfortunate fact of life long before online auctions --ever hear of someone buying the Brooklyn Bridge or a Florida swamp? If you do your homework, the internet can actually be an asset, a tool to do necessary research.

One thing that not everyone knows is that bidding on an online real estate auction is not like signing a contract --it's not legally binding in fact. There are many laws regarding real estate, and none of this can be covered by a mere click of your mouse. You can look at a bid for real estate, in fact, as little more than an initial show of interest, which may make it less intimidating.

Online real estate auctions can be very convenient, saving you from making long and costly trips. The only catch is to do your own research after you've located something you want to bid on. You could quite easily, for instance, fall in love with a home on the other side of the country. Place a bid; this cannot hurt, but now do some fact-checking before making any final commitment.

As with traditional real estate transactions, it is often necessary to hire experts in the field, including real estate agents , home inspectors or perhaps a lawyer. Responsible internet auction sites, such as Ebay do provide safeguards against fraud. You can also check the sellers' feedback rating on Ebay before you bid. Additionally, payment processors such as Paypal protect buyers as well; check with their user policies first.

You have to use the same judgment, perhaps more, when buying real estate online as you would in person. Ask questions about vital issues such as the title , liens, general condition of property, electricity, sewer, well, plumbing, taxes, zoning, etc. You should also be familiar with the location where the property is situated. If you are not, you can find out quite a bit about almost any city or county online --population, economy, weather, crime rate, etc.

The point to remember is that, even if you feel you are dealing with a trustworthy individual, never rely solely on the seller for the information you need, especially if it's of a critical nature. Facts about a property can usually be verified fairly easily, either for free by calling the local municipality or by hiring the relevant experts.

If you are a seller, the process is much simpler, as all you have to do is list the property, Here, too, you have to be careful, though. For one thing, find out if the potential buyer is financially qualified. Even honest sellers, especially with something as complex as real estate, can leave out crucial information simply because they didn't think of it when writing the ad. Or they unintentionally misrepresent something. Be sure to find out anything about your property that you may be unsure of, such as zoning restrictions or property lines.

If you aren't sure how to describe your property, check with a local real estate office or advertising supplement and see how properties are listed. When describing your property, try to be as specific as possible. It's better, for instance, to list the actual square footage of a room or house than to just say it's large.

Just remember that online real estate auctions can be a very convenient tool in buying or selling. What you have to keep in mind is that they are not a complete, one-stop solution. So, log-on and bid, but remember to do your own research and verifying.

Resource: Jon Arcy