With the rise in technology, it has become quite simple for fraudsters to take advantage of na?ve homeowners and people who want to purchase or rent a house. Any individual with a PC and internet access can post on sites like Craigslist and Zillow. Therefore, not all posts on such websites will be accurate or true. 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. It is more important to identify the real estate scams due to the high cases of fraudulent scams. In this article, we will share more info on the most common scams and ways in which you can avoid them.
Scams can happen in your search for a new house and also after moving into your own home. 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 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. A few of the red flags to avoid are a seller who is not local, the methods of payment, and the use 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. But, the key red flag is if the deal appears too good to be true. You will know it is a scam if the ad has listed a price for the house which is lower than the other listings.
Scammers will usually utilize the identity of another person by employing false documents to have another person transfer the home to them. The fraudster will then take a new mortgage on the house, receive the cash and not leave a trace. The homeowner is left in an awkward situation where they have to pay off the mortgage. You might buy title insurance to prevent falling into such a scam.
You could prevent title fraud if you protect your data better. If the scammers do not have any of your personal information; they cannot create fraudulent documents.
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. Nonetheless, you must take caution since the scammers are now claiming to be the real estate agents. To avoid their scams, be sure to work with credible realtors and have online reviews that confirm that they are legit.