Come to think of it; a house is probably one of the most expensive items most people buy in their life. Since big money is involved, it has become a hunting ground for scammers. There are now lots of creative ways these predators use to lure unsuspecting victims.
By learning how they work or operate, you cut down on the chances of falling victim. As usual, they prey on their victim ignorance and exploit it. If something sounds too good to be true, it probably is. This article aims to expose you to red signs you should be wary of.
- Hackers Stealing Your Down Payment
When closing a real estate deal, transactions are often required to seal it off. However, hackers have been known to hijack the process and have you transfer your down payment to an anonymous account. They could do this by sending you an email that contains a harmful malware.
Other times, they could fool you into thinking they are an agent and tricking you into sending him money. To avoid this sort of scam, arrange a home deal where there is zero closing cost. That way, there is nothing to hijack.
- Fake Rental Listing Scam
This scam is viral, and yet many aspiring homeowners keep falling victim. The issue is because they make it seem so real that people rarely notice. The domain of this scam is online, and it works by reposting legitimate property listings elsewhere to scam their victims.
When you stumble on such websites, they often demand an upfront. The moment you send them money, rest assured you will not see that money again, or the property. To avoid this scam, never wire money to anyone you’re yet to see in person.
Before pushing the button, take another fresh look and verify the details. Go the extra mile and find out if they are even licensed, real estate agents.
- Title Fraud
This type of real estate scam is very devastating since it takes identity theft while posing as the actual owner with fake documents. Once they are successful with stealing your identity, they can get a new mortgage against the property, thereby taking the cash for themselves while leaving you with the repayments.
The ideal way to prevent this sort of real estate scam is to ask your insurance to recommend the best policy that offers the best protection against the type of fraud. Also, secure your data, as that is the only way to stop your identity from getting stolen.
- Unlicensed Realtor Scam
In case you have no idea, this scam affects both you and the realtor. That is why you need to ensure you prevent situations like this by being cautious. This scam works when you find yourself dealing with a fake realtor who deposits the money into their account and not into an escrow.
Conclusion
The only way to mitigate these real estate scams is to be extra cautious and verify everyone and everything you do. In that light, good luck.
