Buying a home on ebay

June 1, 2006 11:05 AM

I want to buy property on ebay. Is this a good move?

39 & a financial loser but I just won $12,000 in a poker tournament. I see houses listed on ebay for 10k & less that interest me. I have zero real estate experience & most of the properties are too far away from Seattle for an inspection. Any mefites with experience that can help. Thank You.

posted by poodlemouthe to home & garden (15 comments total)

In today's real estate market you'd probably do better putting that money into a high interest savings account like HSBC or ING Direct or something. I can't imagine buying a property on eBay as anything else but finanancial disaster.
posted by xmutex at 11:07 AM on June 1, 2006

I would echo that sentiment and avoid using eBay like a cheap real estate agent. Locations, conditions, taxes, back taxes and more are just some of the pitfalls of buying sight unseen online.

If you're serious about investing it in real estate then get in touch with a local agent who can help direct you to places you can actually see. I use MLSListings.com locally to check the market for potential plots I'd be interested in, I'm sure there is a Seattle equivalent.

Nice action on the tourny!
posted by fenriq at 11:13 AM on June 1, 2006

No, no, no. What are you going to do with such a house? These houses are either about to fall over or are in the absolute worst parts of inner cities.

How will you rent it out? How will you pay to fix it? How will you find out if you're being ripped off? How will you make sure there is no lien or back taxes on the property? That the tenants will take care of it?

This sort of purchase isn't a gamble, it's a sure loser.
posted by voidcontext at 11:14 AM on June 1, 2006

Put it into a money market account to earn 4% or so until you can talk to a financial advisor. Buying property blind (from anywhere) is an invitation to poverty.
posted by Mr. Six at 11:15 AM on June 1, 2006

I suggest buying a copy of "Financial Stuff for Dummies", and resisting the urge to do anything daft with the money.

Alternatively, if you're up for it, I've got a little bridge that I just happen to be selling for $12k...
posted by reklaw at 11:17 AM on June 1, 2006

I've looked at those properties too and I've noticed that a lot of them seem to be getting auctioned for the down payment only, not the entire purchase price. I looked into a few houses that seemed legit but like voidcontext mentioned, they all had something wrong with them (bad parts of town, serious structural damage, about to be condemned, near horrible neighbors, etc.)

I second Mr. Sixes' comment to put it into a high-yield money market account or something similar. That is, if you've already paid off all your high-interest credit cards and other debts already...
posted by jennaba at 11:22 AM on June 1, 2006

Thanks for all the replies. I put it in a money market yesterday. I don't have any debt but on the flip side I have few employable skills. I've been priced out of Seattle & I'm going to move in September. So these 10k full purchase price 2/1's outside of kansas city... are too good to be true.
posted by poodlemouthe at 11:34 AM on June 1, 2006

Did you pay income tax on the $12K? I think anything over $2000 you are supposed to, but unless it was from a casino or some regulated gaming industry I doubt the IRS has any way to know you actually won it.
posted by camworld at 11:47 AM on June 1, 2006

So why don't you invest that money in some education or training instead while renting something cheap? The whole teach a man to fish thing.
posted by mckenney at 11:49 AM on June 1, 2006

Years ago, a co-worker owned a rental property on Alki in Seattle. One day she was driving by and the entire house was gone, down to the foundation.

She was pretty upset but also recognized the humor in the situation. I doubt the police get many stolen house reports and she had a heck of a time convincing the assessor that her property taxes should go down.

Not very relevant, but a good RE horror story.
posted by trinity8-director at 12:28 PM on June 1, 2006

Seriously man, 39 and few employable skills? Invest in some education.
posted by archimago at 12:33 PM on June 1, 2006

The Internet is not for everything.
posted by cribcage at 2:03 PM on June 1, 2006

Ok. Uhm I guess I should have asked are there any national real estate companies/groups operating in most cities that I could contact about the value of a particular deal.
Thanks archimago but I prefer to travel & gamble & I already have a worthless degree(in jest)
posted by poodlemouthe at 2:40 PM on June 1, 2006

Don't blow it on real estate, and don't blow it on eBay. You'll most likely end up just throwing the money away.

Hopefully you won't go blow $12k on poker either. Toss it all into an ING account and let it sit there and gain interest.

Stay away from eBay. Too many scammers.
posted by drstein at 3:53 PM on June 1, 2006

You'll have to pay income tax, so budget for it. Yes, a house can be evaluated by an appraiser. It costs $200 - 400, but an appraisal will give you a reasonable idea of the market value of a house. That said, don't buy a house on Ebay. It's likely to be a scam, or have severe flaws. If a house is that cheap, it's in a place where there are no jobs because local industry has tanked.

You have no debt, but don't feel that you have marketable skills. Find a career counselor at Adult Education, a community college, or the Job Bank in your town. Get some sense of what you'd like to do. Then invest in yourself. Don't move to Kansas to live cheap. Find someplace affordable that you want to live. If you just want to travel and gamble, spend part of it on an RV, and have a fabulous adventure. Good luck.
posted by theora55 at 5:51 PM on June 1, 2006