Tips for Shopping
For a Home Online

In an effort to head off the threat of an antitrust lawsuit from the Justice Department, National Association of Realtors officials are preparing to water down a rule that would restrict the ability of Web-site operators to display information about homes for sale.

WHAT TO DO: More and more people are e-walking around homes and virtually kicking the siding rather than wasting time -- and risking a rise -- in interest rates, by looking in person. Although the Internet may increase efficiency, it's still important to carefully examine all aspects of the house and its purchase. Read about the alternatives to using a traditional broker, and a closer look at online brokers' pricing. Read how some critics of the real-estate industry allege that it is co-opting the Internet to protect its high-margin structure. And even if online mortgages are faster and cheaper, read why it's still important to take such precautions as making hard copies of any online agreements.

Online Home Shopping Tips

• Don't assume fees and/or broker commissions will be cheaper online. While traditional brokerage firms generally charge commissions of 5% to 6%, and newer ones trying to gain a foothold through Web sites, charge 3% or 4%, there's no guarantee. Find out upfront before you buy or sell.
• Don't let a virtual tour speak for itself. It's worth the time spent to do additional research by picking up the phone to learn about the neighborhood, traffic and other factors that don't come to life in a digital photo.
• Do put emphasis on searching for homes near amenities that usually add value, like golf courses, when buying a property sight unseen.
• Do power down your computer if you have any doubts. In the end, there's no substitute for a personal visit and speaking with the sellers in person.

Source: WSJ.com research

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