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 can post on websites such as Zillow and Craigslist in case they have a PC and internet access. Thus, not every post on such pages will be true or accurate. In fact some surveys indicate that Craigslist does not flag at least half of all the fraudulent real estate posts which are posted on their website. These high cases of fraudulent posts makes it more critical to understand real estate scams. In this article, we will share more info on the most common scams and ways in which you can avoid them.
Scams occur while you are planning to move into a new property and also after moving 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 claim to be the homeowner or landlord and will respond to your emails in good time and professionally. To avoid such scams, you have to be able to identify the red flags on posts which are fraudulent. 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 suggest that you meet at a different location so as to sign the sale agreement and give you the keys. In case the deal is too good to be true, this is the major red flag. In case the ad has indicated an extremely low amount for the home which is lower than the other listings, it is a scam.
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.
When you are searching to purchase a home, it is critical to have a realtor to assist you in finding what you are searching for. However, you ought to be careful as the scammers are now lying that they are real estate agents. To prevent such frauds, ensure that you get the help of reputable real estate agents and read online reviews that prove that they are credible.