Online Real Estate Auctions

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.

One question that naturally occurs to many prospective buyers and sellers is, simply, is this a safe way to do business for such a high-cost item? It's easy to picture a nightmare scenario where you buy a house or piece of land, sight unseen, from a photo posted online, and then it turns out that it wasn't at all what you thought you were getting.

In all business transactions, there is a phrase that has become increasingly well known --due diligence. This is something that is especially essential when considering a real estate purchase, whether on or offline. People have, after all, fallen victim to fraudulent real estate deals long before there even was an internet. In fact, the computer actually makes it easier in many ways to do your homework.

Not everyone who browses online auctions realizes this, but a bid on a piece of real estate listed online is not a legally binding contract. This is because real estate transactions are regulated by local laws, and these take precedence. A bid is technically a show of interest. Looked at this way, it seems somewhat less daunting.

While it can be very convenient to find property online, especially if you are searching in locations far away, there is no reason not to do some serious fact-finding once you locate something you are interested in before committing yourself to a purchase. For example, you could fall in love with a house that is 1500 miles from your present location, bid on it and, before the online auction is even over, have some crucial facts checked out.

Before completing a transaction, you may require the expert help of lawyers, real estate agents or home inspectors. This is no different from buying real estate in the traditional manner. Fortunately, responsible online auction sites such as Ebay, as well as the leading payment processor Paypal, offer safeguards against fraud; check user policies. With Ebay you can also check a sellers' feedback rating before bidding.

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.

Sellers should study listings in their newspaper or local real estate office to see how they are constructed. Avoid words that are vague or subject to debate and stick with as many specifics as possible --for example, state the exact size of a room rather than saying it's "large."

If you keep these precautions in mind, online real estate auctions can be very convenient tools. The key is not to oversimplify the process in your mind and think you can simply log-on, bid and buy without using any other resources.

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If you'd like to explore the world of online real estate auctions, take a look at some properties for sale as well as many investment properties