The purpose of this guide is to help you, the reader, avoid some common mistakes with your land purchase. I feel compelled to write this guide as a dear friend of mine just got burned badly with an ebay land purchase, whereas I've completed more than one land transaction via ebay (and another via the internet off ebay) without a single hitch or headache. Still, though my own transactions have been relatively problem-free, I did make some missteps and errors- things I would definitely do differently if I had to do it over again.

Years ago, I recall a relative of mine saying "The reason 10% of the people are so rich is because 90% of the people are so stupid..." It may sound harsh, but over time I've come to learn and appreciate the basic realities of this statement. When you buy land, here are a few tips to keep you in the 10%. While the tips are numbered, they are in no way arranged in order of importance. Remember. It only takes one component of a deal to go bad to make the whole thing a monumental headache.

1) Don't let your dreams become delusions.

              DESCRIPTION:                               DREAM:                                  REALITY?
 

I think it was Heinlien who once said something about humans being a "rationalizing" creature more than a "rational" creature. This dynamic is at work full-force in ebay land transactions, and the greatest evidence of this is the sheer number of land sellers who put pictures in their listings THAT IN NO WAY REPRESENT WHAT YOU ARE BUYING.
I happen to find amusing as heck that people wouldn't buy a coffee pot or a collectible baseball card without clear pictures of the actual item, but those same people are willing to spend substantially more money on a piece of land that is completely sight unseen, basing their decision solely on the sellers "description" and pictures that aren't even of the land in question. For the life of me, I will never understand why eBay permits sellers to post deceptive photos that do not accurately depict the land that is being sold, but as long as they continue to allow this swindlers tactic, you as a prospective buyer need to learn to ignore the pictures of the gorgeous lake or the ocean if they aren't an actual picture of your land.

See what you're buying. Plane tickets are cheap, Buy one and go look at it. Stand on it. Know and understand your purchase. If you are willing to buy land based solely on pictures, you're a gambler. You will win some and you will lose some. If you're willing to buy land based solely on pictures that were taken 40 miles from where your land is located, you're a sucker and you will lose almost every time.

2) "Due diligence" takes time.

If you're willing to invest your money, you need to be willing to invest your time to ensure that you aren't throwing your money away on something you don't want. Talk to the county property appraiser. Find out the history of the land. Ask them friendly, textural questions about the area that only a "local" would know. Ask them about area economics and demographics... Ask them "how land sales have been lately..." Ask them if they would want to live in that area themselves.

You must ask the seller all of your questions in advance, make sure that the information you need to make your decision has been obtained and then be prepared to act quickly and decisively before the window of opportunity closes. Again, this is why buying land on ebay is just so tricky and most definitely isn't for everyone. You are basically forced to commit to purchase before you can complete a comprehensive, truly  complete research effort. In this sense, ebay land buying is like playing poker. Sometimes, the best you can do is compile as many fragments of information as possible and make the best possible decision using imperfect and incomplete information, then hope the cards fall your way. Again- this is not for everyone. If you are the sort of person who is absolutely risk averse, then do not purchase land via ebay. If the land purchase you're making represents a substantial financial purchase- profound enough to your own economic standing that if something were to go wrong it would be absolutely crushing to your life and happiness, maybe you should examine other venues.

3) Understand that land is a commodity.

...no different than an ounce of gold or a barrel of oil. The prices of land, while much more abstract, are fairly set. You're going to find a $20,000 property for $5000 about as often as you're going to find a one ounce gold coin for 1/4 spot price (that is to say, almost never)

If you are able to purchase a piece of land for what appears to be a substantial discount over a typical fair market selling price, that should be an enormous red flag. This doesn't mean that good deals don't happen- they certainly do and I've been the beneficiary of one great land deal via ebay myself, so don't be so cynical that you flout the chance at a great deal because you're too scared that "something is wrong".. What it does mean is that for every one great deal, there are 99 other deals where the reason for the low selling price is some sort of flaw or undesirable aspect of the land that isn't being conveyed in the listing. It is up to you to figure out what that flaw is, or if you just hit the jackpot and stumbled across that "once in a decade" great deal.. Again, all of this takes time, the ability to problem solve and enough critical thinking skills to decipher the truth through the smoke and mirrors.

4) "Trust, but verify..."

Examine the sellers contract carefully, and if you aren't particularly good at reading legalese, don't be too proud to spend a couple hundred bucks to pay a lawyer to do it for you. You can bet your butt that the terms outlined in a seller provided contract are going to be slanted heavily in their favor. If there is something in the contract that you are uncomfortable with, request an amendment. If the seller is unwilling to amend. THEN DON'T HESITATE TO PASS ON THE DEAL. ANOTHER ONE WILL COME ALONG. IT'S OK.
YOU ARE BETTER OFF BUYING A PIECE OF PROPERTY WITH FAIR CONTRACTUAL TERMS THAN YOU ARE BUYING A PIECE OF PROPERTY WITH PREDATORY TERMS THAT WILL SCREW YOU IN THE LONG RUN!

5) Zoning, Zoning, Zoning

(Formerly known as "Location, Location, Location")

I'll keep this one short and simple. If your property isn't zoned for the use you purchased the property for in the first place, then it doesn't matter where it is located. You MUST MUST clearly understand all covenants, restrictions and zoning quirks that are attached to the land you're buying. Sure, it might be a pretty piece of land right next to the water... What they didn't tell you is that the area is considered floodplain and you must build 14' into the air in order to qualify for permits... or maybe the area isn't buildable at all. Definitely a bad thing if you purchased this land to build your dream log cabin... Sure, it might be an amazing property in the area you've always dreamed of... What you don't know is that the land has been illegally subdivided ten times and as a result, you will be unable to build anything on it. Oh yeah, did anyone mention the $10,000 "impact fee" you have to pay before you turn a single shovel of dirt?

Ebay is the perfect conduit for owners of undesirable properties to peddle their junk to unsuspecting buyers. You must be 2X more careful and fastidious about details when buying land online than you are when buying in person.

6) Be Prepared to Walk Away.

If you enter a deal so married to the concept of completing it that you are unable to walk away when things turn against you, you're completely handcuffing yourself and basically setting the deal up so you get the worst end of things. Be it first time home buying or ebay land buying, these purchases are intertwined with peoples hopes and dreams, and those aren't very easy to "let go" of. It's much easier to just acquiesce to some unfavorable term or undesirable aspect in order to make the deal happen, thus keeping the dream alive.

You must be able to walk away and wait for something else if the terms aren't right, or if it turns out that the property isn't what you really wanted. Nothing turns a dream into a nightmare faster than having to hand over a large sum of money to purchase something you've come to despise. If you aren't patient in this game, you are destined for failure. I kinda lied when I said that these things weren't in any particular order. If I were to advise on the #1 most important thing when buying properties, it would be to put just as much emphasis on patience as you do on diligence. If you are diligent and patient, you will never, ever get the shaft.

This one is the hardest to do on ebay, since you can't place the winning bid or "Buy It Now" and then change your mind later. You must handle your land purchases cooly and calmly- like they're a 'business decision' rather than the fulfillment of a dream.

7) Just because you "own the land", your costs don't end there.

For example, you have annual state taxes. In some states they're a pittance (hooray Nevada!)- in others, they're enough to make you seriously rethink owning there (NJ, MA, in some cases, FL).
Some properties have association dues and assessments levied upon them. You see a lot of lovely lots listed on eBay up in the Poconos for what seems to be fantastic prices. The catch? You have an annual $500 or $600 "association dues" bill, in addition to your $400 or $500 tax bill, in addition to the few grand you plunked down for the property in the first place. Suddenly, that $3600 property loses A LOT of its luster when you're forking over a grand a year just for the privilege to own it. Planning on using your land for anything any time soon, even just camping? Better plan on having it surveyed. You've got to know what land is yours and what land isn't. There goes another $800-$2000 (or even higher, depending on the terrain, how far out you are, surveying costs in your area, etc)

I could go on, but that seems to be enough. Really, I am convinced that land transactions are simply a microcosm of life in general. People who are stupid, reckless, short sighted and lazy are destined to fail while people who are disciplined, patient and smart will succeed. Ebay land buying can be done successfully if you have a slightly above-average tolerance for risk, spare time to cross the T's and dot the I's and enough disposable income to "write the check" without giving it a second thought. It is not a game for habitual naysayers or perpetual pessimists who can only conceive of "what might go wrong".

Be smart, be shrewd, think ahead and be bold!