Strategies of Avoiding the Real Estate Scams Which are Common
With the advancement in technology, it has become rather easy for scammers to take advantage of unsuspecting homeowners and individuals who want to buy or rent a home. Any person can post on Craigslist and Zillow if they have a computer and internet access. Thus, not every post on such pages will be true or accurate. 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. 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 can take place while you intend to move into a new home and also after you move into your own house. Below are a few of the most common scams that happen in the real estate which you should be aware of to help you with getting more details.
Online scams are prevalent in the famous sites, and this causes financial harm to buyers who are not suspecting. The fraudster will say that they are the homeowner or landlord and will reply to your emails in a timely and professional manner. You should be able to notice these fraudulent red flags or posts to prevent such scams. The use of a third party, methods of payment and a foreign seller are some of the red flags to look out for. 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.
To have another individual transfer the home to them, fraudsters will typically utilize another individual’s identity by using false documents. 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 might protect your data better and thus avoid being scammed. 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.