There are three common real estate scams that you need to be aware of so you know how to avoid them.
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Here are three common real estate scams that you need to make sure you do not fall prey to:
1. Wire fraud. This scam is the most common and the most serious. It has come up over the past few years and has caused title companies to change their policies to the point where they will no longer send wiring instructions via email.
It works like this: Scammers hack into the email accounts of real estate agents and title companies, then send fraudulent emails to homebuyers with instructions to wire their money to the wrong account. After the money gets transferred, it is almost impossible to retrieve it. If you are about to purchase a home, call the title company before you transfer any money and make sure you have the correct wiring instructions.
“It is important that you work with an experienced agent who can help you know the difference between a legitimate part of a real estate transaction and a scam.”
2. Fake rentals (or posting homes for rent that are not actually available). You often see this type of scam on Zillow or Craigslist, and it usually happens to desperate renters who need to move in quickly. Scammers will find vacant homes and list them as available for rent. As soon as a renter contacts them about it, they will ask for a deposit sight unseen. Again, never send money to anyone until you can verify that they represent a legitimate company.
3. Marketing schemes. This scam happens to homebuyers after they have purchased their home and they go to get their recorded deed. Scammers will send you a document that looks official and charge you a fee (usually around $85) to get that recorded deed. Getting your recorded deed is not something you have to pay for. You get it for free, and it is a publicly recorded document, so you can call your title company at any time if you want it.
No matter what, it is important that you work with an experienced agent who can help you know the difference between a legitimate part of a real estate transaction and a scam.
If you have any more questions about these scams or how to avoid them or you have any other real estate needs, please feel free to reach out to me. I would love to help you.
