"Can You Sell a Home on eBay?"

That was the question my client posed to me the other week.

To answer it, I did a little investigating.

eBay Tutorial

Just navigating eBay's instructions easily consumed an hour-plus.

During that time I learned that eBay charges an "insertion fee," a "notice fee," and "picture hosting fees" – not to mention "optional feature fees" and "listing upgrade fees" -- all presented on various tables and schedules.

eBay also has a few more pages of directions explaining "auction style" vs. "fixed price" listings, reserve prices, etc.

Glorified Classified Ad

The real zinger, though, is fine print explaining that real estate properties that eBay lists for sale are ultimately really only (expensive) classified ads.

Which is probably why I found ZERO residential properties in Minnesota currently listed for sale on eBay.

In fact, there only 4 states – Florida, Michigan, Ohio, and Pennsylvania – where there are residential properties listed on eBay (you can imagine the ones in Michigan!).

Verdict?

No go.

I'll take the local MLS's forms any day!

Real Estate Auction Checklist

Considering an Auction?
Buyer Beware (Very)

I have had more clients ask about -- and have noticed myself -- that more distressed property is now being sold through auctions locally (see my post discussing wwww.AuctionToday.com). I don't handle those -- such auctions typically are an alternative to selling through Realtors.

However, I feel I'd be remiss not to raise a few (ok, a lot of) threshold questions that any prospective Bidder should ask. Such as:

--What kind of title will you be getting if your bid is accepted?
--What fees will you be charged? Auction Today discloses, in fine print, that they tack on a 5% fee to all winning offers.
--Who are you bidding against? (beware of "straw buyers" bidding remotely to drive up the price).
--Are there "minimum's" or reserve prices?
--What kind of payment is accepted -- and how long do you have to deliver it?
--What are the "comp's" (comparable sold properties) for the property you're interested in buying?
--What is the condition of the property you're bidding on?
--What liens, fines, taxes or other fees are owed against it?
--What legal recourse (if any) will you have if there are major problems after you close?
--If you're buying a townhouse or condo at auction, what are the association fees? Complexes with large numbers of foreclosures are being forced to raise fees on solvent owners to compensate for shortfalls associated with non-paying foreclosures.

When I handle a transaction for a client, I can answer each and every one of these questions. Plus, my client will have been able to tour the property multiple times, then bring in a professional inspector.

You should insist on the same access and disclosures if you're buying at auction.