Beware of These 3 Common Real Estate Scams
The last thing you want to worry about is a real estate scam when buying or selling a house. You act quickly when you find that ideal place to call home. But, if unlucky, you will fall into the trap of these scammers who take advantage of your vulnerability. Here are tips on the most common scams to look out for before buying or selling your property.
How do you spot real estate scams?
If you plan to sell a house for the first time, there are some early warnings to look out for before taking that step. Let’s have a look at these warnings in detail.
1. Initial fees
Beware of scammers who approach you like real estate “agents” to discuss a deal for your home. If you fall for these lies, consider real estate lawyer Orlando-based. And, before they render any services, they will ask for upfront money, calling it an administrative fee. Only make payments after a done deal.
2. Money transfer scam
According to the FBI, in 2021, reports of scams were about 11,578 people in America. Therefore, this makes money wire transfer the most common fraud in America. Fraudsters hack the real estate agent’s email address and get a hold of your details. Then they impersonate you and demand money from the agents through an escrow fund.
3. Foreclosure scam
When you’re late on your mortgage payments and face foreclosure, a “buyer” swoops into the rescue. They offer to buy your home or provide a certain amount after selling it, but only after signing your deed to them. However, they rent your property and keep the money. Eventually, lenders foreclose the property.
In short, real estate fraud is a sad reality, but with the above tips, you should be able to spot one at a distance.