Believe it or not , home buyers purchase real estate on-line. 
In Phoenix, Scottsdale, Peoria, Glendale and other popular retirement towns this is a growing practice as these are popular vacation home and retirement cities.
Many of these buyers are relocating to the Metro Phoenix area and want to purchase before they move.
The advantage to buying a home on-line is usually cost savings. Although, many buyers simply see a home they love and make purchase offers, so not to miss out.
In many cases, buying homes site unseen; except for the photos and virtual tour of the house beautifully staged by the listing broker.
Some companies, including the widely respected, RedFin have made this a profitable business model. Although, they do offer personal service, and very good personal service, the majority of the home buying (and selling) process is done on-line.
60 Minutes 's Lesley Stahl produced a story about Buying and Selling Real Estate on-line .
My brother's wife's family relocated from New Jersey to Fountain Hills, AZ finding and buying their home on-line. They are very pleased. (although, I did have the opportunity to preview and negotiate the Fountain Hills home on their behalf).
Generally, I recommend you consult a real estate agent as there are many aspects to home buying more than price; especially the contract terms and conditions.
However, if you are going to buy your next home on-line make sure you follow these tips.
- extended Close of escrow so that you have plenty of time to get the best available finance. You can always close early.
- Financing details must be in the contract so that if you do not get satisfactory finance you can cancel per finance contingency without breach -Terms of finance would include who pays for pay for loan costs (and appraisal)
- Choice of Escrow company. In Phoenix, the seller pays for Title Insurance and will often demand use of Title and escrow company of their choice. However, all items are negotiable and I prefer my buyers to have control of escrow to best protect earnest monies
- Inspection Period time frames including response times. Contingencies regarding this period are crucial.Inclusion of any other reports the buyer may need to determine the suitability of this particular property
- Buyer (and seller ) cancellation contingencies to allow for offer contract cancellation. Make sure you know these time frames and have them spelled out clearly.
- Cure Period Notices. In Arizona, virtually everything is ‘curable' with a 3-day cure period. Arizona ‘Cure periods' can be changed and negotiated to reduced. Make sure you know what these cure periods time-frames.
There is plenty more to understand and negotiate when buying real estate on-line.
Be careful, there is more than earnest money at stake. Buyers and sellers can and do sue for breach of contract.
Make sure you know how to read and prepare offers for real estate that protect your best interest. Often, these -on-line contracts are prepared for and designed to protect those who write them; Themselves!
I urge you to contact a real estate agent to help you.
There are many experts on Active Rain who have commented below with their email and phone number attached.
________________________________________________________________________
Copyright © James Wexler, *Be Careful when Buying Real Estate On-line*
Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale Real Estate needs
Good advice -- I can't imagine someone buying property on line. There is so much that goes into the process! Also, making sure that the home meets the lifestyle requirements of the buyer is so important. In our area inspectors are NOT licensed.. so guidance in this regard is very critical. It always is best to have a savvy advocate when buying a home -- and especially when relocating.
On line is a great way to start your research. They say 85% of homebuyers start the homebuying process online. I don't mind the research, but the 'PURCHASE'? ARE YOU KIDDING ME?
Joan - people are buying real estate on-line. Or at least they were in the boom up until 2005. many people relocating to AZ did not want to miss our on the buying frenzy and would find homes on line and call the realtor and negotiate offers.
Larry - NAR reports that figure and I think they are probably right on. Even current clients , buyers and sellers, seem more eductated in the area and the homes before I speak with them.
And if you can believe it many retirees would buy on-line. The home purchase site unseen!
James ... thanks for the good post. Amazing that people would buy real estate online. We agree with you and would also "recommend you consult a real estate agent as there are many aspects to home buying more than price; especially the contract terms and conditions.". I also believe there is amazing and positive value for the buyer in using a Realtor agent, who would advocate for the buyer once he or she finds a property. Harrison
Harrison - if you are going to buy a home on-line and I guess this is a look at the future as it seems everything is shifting on-line to save money,
we both strongly suggest that you consult with a realtor to protect you in the contract language and details, seller disclosures, inspection and contingencies to protect earnest monies.
James - great advice to those who decide to buy property on line. i have never handled a purchase on line but would concure with you that anyone who decides to go this route hire a Buyers Agent to represent them on the purchase of a property.
Judy - there are companies that represent the buyers for reduced fees (like 1%) in the contract preparation of offers, organizing inspections, etc...
at the very least, unless you are a savvy and experienced buyer, you should pay the 1% and get an agent for you best interests versus the sellers
james,
The number one issue that buyers need to be aware of are contingencies and the protection of earnest monies.
Agents, will walk buyers through the time frames and critical dates
Jason Mitchell - look, i understand if a buyer wants to save money and finds the home they love without the help of a realtor, then good for them.
However, buying a home, is not like a trading card on ebay.
There are many risks and protections even experienced buyers need be aware. Get the help of a realtor for a discounted price at the bare minimum
Seems like this one should be the big "DUH!?"... but I know there are people out there willing to purchase everything and anything online
Alan - it seems incredible. But, yes, many people are (or were ) buying real estate on-line.
on-line direct purchasing has tailed off. However, during the real estate boom, people were climbing all over each other to buy real estate in places like greater phoenix, Las Vegas, and parts of florida .
wexler - I have clients who call me to get a loan in tempe, because they are buying real estate in tempe, az
and they have never been to Tempe , AZ or have seen the condo they are buying in the area. Amazing stuff
James~ I can see buyers and sellers wanting to save money, who doesn't? But, it is rather risky to buy or sell with out representation. It may end up costing more in the long run because of the problems that could occur! It is too big of an investment in the first place to take a "chance." Buyers and sellers alike should hire a professional that they are comfortable with and trust.
Great advice James. How do you still go into contract by choosing your own escrow. It seems like that can have the seller choose another offer over yours based off the title company.
Vicki - thanks for reminding buyers and sellers that it may actually cost you more money in the long run to not use representation
Scott - I am hearing more and more stories just like that of people buying homes site unseen without the help of realtors
Mike - you are 100% right.
There are a lot of pitfalls to be aware of that put the seller in a much better position to protect their interests better then your own