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 can post on websites such as Zillow and Craigslist in case they have a PC and internet access. Hence some posts on these websites will be inaccurate. In fact, some studies have shown that a website, for instance, Craigslist, does not flag over half of the post which is on their website. The high instances of scams make it more essential to understand real estate scams. In this article, we will explain some of the most common scams and approaches to avoid them.
Scams can take place while you intend to move into a new home and also after you move into your own house. To aid you with getting more data, below are some of the most common 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 say that they are the landlords or the homeowner and will reply to your emails professionally and promptly. 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 fraudster might also say that you should meet a different place to sign the sale agreement and hand you the keys. In case the deal is too good to be true, this is the major red flag. You will know it is a scam if the ad has listed a price for the house which is lower than the other listings. You can read more now on how to avoid real estate scams or click now to find a trusted real estate agency.
Scammers will usually utilize the identity of another person by employing false documents to have another person transfer the home to them. The scammer will then apply for a mortgage on the property, get the cash and not leave any trace. The owner of the home is left in a hard place where they have to pay off the mortgage. You might buy title insurance to prevent falling into such a scam.
You could protect your personal information better and thus avoid title fraud. Fraudsters cannot come up with fraudulent documents if they do not have any of your data.
To be able to find what you are looking for when searching for a house, it is important to enlist the help of a realtor. 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.