Online real estate auctions are starting to become popular. There are now quite a few sites where you can buy and sell homes, land, commercial buildings and so forth. Ebay, for example, where people, after all, sell almost everything, is no exception --you can find extensive listings for all kinds of real estate from all over.

How safe is it to buy something as expensive as real estate online? This is a fairly obvious question that many potential consumers have at the outset. When you buy something like a home without seeing it in person, it's not very hard to picture a nightmare scenario where the photo was completely misleading (perhaps taken years ago) and the house is in shambles.

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.

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.

Searching for real estate online can be extremely efficient; it can save you from making trips across the country. However, once you have located something that interests you, there is nothing to stop you from doing your own research. You could, for example, fall in love with a house ten states away and place a bid on it. In the meantime, while the auction is still running, you can take the time to do some fact-checking.

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.

If you are going to consider buying real estate online, you must use at least as much caution as you would buying in person. Make sure to verify facts about any liens, titles, plumbing, taxes, zoning, well, sewer and so on. Also, do not ignore the surroundings; if you are not familiar with the town, city or county where the property is located, you can usually find out quite a bit online --facts about the economy, population, crime, climate and so forth.

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.

Sellers in real estate auctions have slightly less to be concerned about, but they too must be careful. The financial qualifications of a buyer must be verified, or you may end up disappointed. Be sure to find out anything about your property you aren't sure about (e.g. zoning laws, property lines) or you may unintentionally leave out or misrepresent something important.

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.

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.