Preventing Common Real Estate Fraud: A Must-Read Guide
The internet has provided us with a beautiful new world full of information; however, there is always a dark side in every industry, including real estate fraud. Hackers and scammers have begun to take advantage of many individuals in several different ways when they’re trying to buy a house. This article will expose some of the most common real estate scams and how you can avoid them.
1. Unreal Rentals
One of the most prevalent real estate scams occurs via websites like Craigslist or Facebook. Scammers post a rental at a seemingly fantastic price to draw in those looking for cheap accommodation. Then once initial payment has been wired, they often disappear, never to be seen again.
To avoid this particular scam, keep an eye out for certain red flags. They often never share any more photos of the property and won’t allow you to visit without upfront payment.
2. Fake Loans
Almost every individual will need to take out a loan to purchase a property, and many scammers take advantage of this. By browsing around the internet, you may notice loans with incredible interest rates and be intrigued. However, chances are these are too good to be true. If you are searching for a loan online, read some customer testimonials first. Do your research and avoid this type of real estate fraud.
Baiters are particularly sneaky individuals and can cause a lot of stress on those looking to sell their property. Generally, they offer an incredible price for a house, much above other potential buyers. They then make up excuses for months on end, causing financial havoc on the owner. After a long time, they offer another meager price that the owner usually can’t refuse due to their financial state.
To avoid this from happening, never grant unworthy extensions and set clear guidelines from the start. You also might consider confirming their payment method early on. If you look for a quick way to sell your home, try checking out reputable sites.
4. Damaged Properties
One thing about the internet is that photographs can often hide the truth. Many homeowners will temporally fix issues in the house to make it appear much more valuable than it actually is.
To avoid falling victim to this real estate fraud, ensure that the property has undergone all the necessary inspections and read through the reports. You should also be very careful when you visit the property for the first time.
5. Mortgage Closing Scam
Lastly, perhaps the worst real estate scam is the mortgage closing scam. This involves hackers who make their way into real estate emails. Once they notice a deal is soon closing, they send through payment information, posing as your real estate agent, so that the money is wired to them.
To avoid this, before sending through any money, make sure you speak to your real estate agent in person or over the phone. The last thing you want is to easily lose thousands of dollars.
By making yourself aware of these different scams and ensuring that you remain vigilant at all times, you can avoid losing money to these untrustworthy people. Remember to try and stick to reputable websites and never send money online if something doesn’t seem quite right.
Real Estate Fraud: How To Report a Scammer
Let your family and friends know about these types of real estate fraud by sharing the article on social media. You can also officially report scammers and any other suspicious activity do it to the Federal Trade Commission (FTC) using this link below:
How To Protect Yourself More
If you want to receive by email the most prevalent scams every week, subscribe to the Scam Detector newsletter. You’ll receive periodic messages – we promise there is no spam.
Meanwhile, educate yourself with some other real estate fraud-related articles – listed right under this paragraph. Last but not least, use the Comments section below to expose other real estate scams.
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