As one of the largest web retailers, eBay now helps consumers to buy nearly any type of tangible or digital products in the U.S. and in other countries. Someone who is currently searching for a home to purchase does have the option to sort through auction listings. The answer to the question can you buy real estate on eBay is yes. This buying method does come with warnings though.
Unlike a regular market purchase, there are four ways that a home buyer can complete a purchasing using the eBay buyer and seller marketplace. While there are some restrictions on what can be sold, sellers now list a range of housing industry products online.
4. Reserve Auctions
This auction type allows the seller of a commercial or residential property to set a minimum price that must met in order to successfully win an auction. It is common for some sellers to initially list homes for $.01 or even $.99 in hopes of attracting a potential buyer who can bid up the price to the requested reserve.
3. No Reserve Auctions
eBay real estate no reserve auctions can be reviewed by a person willing to buy a property on the web. Unlike when a seller puts a minimum acceptable price on a listing, a no reserve auction means that there is no set price that must be met during the course of the bidding process. Some housing industry buyers could find an occasional good deal on a rental home, timeshare, mobile home or piece of raw law through a no reserve style auction.
2. Down Payment Auction
Buyers bidding on an eBay real estate listing could encounter what is known as the down payment purchase. Some sellers of homes, land, duplexes, condos and trailers often allow an outright purchase of a down payment. While some buyers believe they might be paying for the total cost of purchase, sellers are required to notify buyers in the listing that the purchase price is only for the down payment and a land contract or sale contract will be in force.
1. Buy it Now Auction
When a seller creates an asking price for a piece of real estate, he or she can include what is known as a buy it now option. This means that a lucky buyer who visits the auction has the chance to pay cash or finance the purchase before another bidder. While some deals can be found for this auction type, many sellers inflate the market value of the property in order to cover any real estate selling fees payable to eBay or a payment processor.
Adults should always be cautious when purchasing a property from any seller. The due diligence that is always spoken about by professionals comes into play when auction style properties are reviewed.
7 Cons of Purchasing Properties by Auction
1. Usually Cannot Visit the Property in Person
2. Buyer Does Not Know Seller
3. No Title Insurance is Offered
4. Liens Can Obstruct a Sale
5. Property Deed Hard to Research
6. Most Sales are Final
7. No Cash Sales Allowed
Sorting through auction style listings can be exhausting and there are many disadvantages of the process. An investment property can be purchased online here at JWB. Download the complementary investor's guide on this page to learn what steps to take to purchase a managed rental home.