Approaches to Avoiding the Typical real Estate Scams
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 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. The high instances of scams make it more essential 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 happen in your search for a new house and also after moving into your own home. 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 say that they are the landlords or the homeowner and will reply to your emails professionally and promptly. To avoid such frauds, you should be able to see the fraudulent posts or red flags. 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. 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 normally use another person’s identity by utilizing false documents so as to have someone 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 between a rock and a hard place where they have to pay 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. Scammers cannot create fraudulent documents in case they do not have any of your personal information.
When you want to buy a home, it is vital to have a realtor to help you in getting what you are seeking. Nonetheless, you must take caution since the scammers are now claiming to be the 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.