Ways of Avoiding the Common Real Estate Scams
With the progressing technology, it has become quite simple for scammers to defraud homeowners who are unsuspecting and people who want to rent or buy a property. Any individual with a PC and internet access can post on sites like Craigslist and Zillow. Hence some posts on these websites will be inaccurate. In fact, some reports have shown that a website like Craigslist does not flag more than half of all the fraudulent real estate posts which are on their site. These high cases of fraudulent posts makes it more critical to understand real estate scams. In this guide, you can discover more about the most typical scams and ways in which you can prevent them.
Scams occur while you are planning to move into a new property and also after moving into your own house. To assist you with getting more information, below are some of the most typical real estate scams which you should know.
Online scams are common in the popular sites, and they lead to financial harm to unsuspecting buyers. The scammer will claim to be the homeowner or landlord and will respond to your emails in good time and professionally. To avoid such frauds, you should be able to see the fraudulent posts or red flags. Some of the common red flags to watch out for include a foreign seller, payment methods, presence of a third party. The scammer might also advise you to meet at a different place and to sign the sale agreement and offer you the keys. However, the main red flag is if the deal is too good to be true. In case the ad has indicated an extremely low amount for the home which is lower than the other listings, it is a scam.
To have another individual transfer the home to them, fraudsters will typically utilize another individual’s identity by using false documents. The fraudster will then take a new mortgage on the house, receive the cash and not leave a trace. The homeowner is left between a rock and a hard place where they have to pay the mortgage. You might buy title insurance to prevent falling into such a scam.
You could prevent title fraud if you protect your data better. Fraudsters cannot come up with fraudulent documents if they do not have any of your data.
When you want to buy a home, it is vital to have a realtor to help you in getting what you are seeking. However, you ought to be careful as the scammers are now lying that they are real estate agents. Enlist the help of reputable real estate agents and read online reviews that discuss their reputation to avoid such frauds.