From the islands of Hawaii to the snow capped Colorado mountains and even the sunshine state of Florida, eBay's marketplace is becoming a hub among real estate moguls. As a benefit to the buyers, competitive pricing and a wide selection of homesites are available throughout the real estate category. Sellers, on the other hand, have access to a world of customers who are looking for a place to build their dream home, vacation getaway or simply to be used as an investment.
In the past, owner financing was a term used to describe a real estate transaction from person to person. Now, it's a common phrase that is used to describe the internet real estate market. An increasing number of real estate companies and owners now offer fixed interest rates, no credit check and no application to any buyer who promises to make timely payments. When entering into an owner financing agreement, a written contract will be signed by both parties and will document such things as payment amount, number of payments, purchase price, interest rate, etc.
The most important thing to consider when participating in any real estate transaction is that a legal deed will be provided at the conclusion of the final payment. With owner financing, the deed will generally remain in the sellers name until the new buyer has fulfilled the contract. Every buyer should make sure that the deed is free and clear of any liens, foreclosures, etc. In addition, the issue of any potential back taxes should be addressed. Most reputable real estate sellers will disclose the information but, if not, the buyer needs to ask.
Purchasing real estate online can be scary and some may find it a unique way to do business but, for those who have found the experience to be positive, they wouldn't hesitate to return to the bidding block for their next real estate purchase. If at all possible, the potential buyer should arrange to view the property or, at the very least, request detailed photos. Site unseen is a questionable way to make a large purchase but, for some, it may be the only way to own the homesite of their dreams. Individuals with past credit problems who would otherwise be denied a loan will likely benefit from owner financing due to the fact that every buyer receives the same fixed interest rate for the life of the loan and no credit check is performed. Individuals with irregular income or those who have difficulty obtaining a traditional loan are learning the benefits of purchasing real estate online.
With a conventional loan, the down payment is typically 10-20% of the total purchase price. But, many eBay real estate sellers allow buyers to actually bid on the down payment. The final bid amount for the down payment is then deducted from the total due and the number of monthly payments are calculated accordingly. For years, buyers have enjoyed bidding on jewelry, collectibles, clothes and other merchandise. These days, they are often found bidding on down payments, land and even homes. |
