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.



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.

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.

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.

You may have to recruit the help of experts, such as attorneys, real estate agents or home inspectors to properly do your due diligence, but this is the same as with traditional real estate transactions. Responsible internet auctions such as Ebay, as well as the commonly used payment processors such as Paypal offer a certain degree of protection against fraud (check their user policies). With Ebay, you can also look up 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.

No matter how trustworthy you feel the potential seller is, do not assume that they are giving you 100% accurate information. In some cases, they may not even know certain things. You can always verify vital facts by calling local municipalities regarding legal matters or, again, 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.

Before writing an ad, check with a local real estate office or newspaper to see how properties are described. Try to be specific rather than vague in your wording. For example, give the actual dimensions of rooms rather than saying simple "spacious."

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.