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.



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.

This brings up the subject of due diligence, which is a sensible course to follow in all business transactions, online or not. People have long been swindled in shady real estate deals, long before there was an internet. In some ways, a high tech environment makes it easier to take precautions.

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.

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.

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.

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.

Even if you feel as though you can trust the person you are dealing with, it's not a good idea to rely completely on them for essential information. Facts about property are not hard to verify, either by hiring the relevant experts or by making some calls to local municipalities regarding legal matters.

If you want to sell real estate online, the process is a bit less stressful. You do have to exercise some caution here as well. The financial qualifications of any potential buyer must be ascertained. As far as representing your property, even honest sellers sometimes make mistakes, unintentionally misrepresenting something. If you aren't sure about some aspect of your property, such as zoning restrictions or property lines, be sure to find out.

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.