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. It is more important to identify the real estate scams due to the high cases of fraudulent scams. In this guide, you can discover more about the most typical scams and ways in which you can prevent them.
Scams occur while you are planning to move into a new property and also after moving 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 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 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.
To have another individual transfer the home to them, fraudsters will typically utilize another individual’s identity by using false documents. The fraudster will then take a new mortgage on the house, receive the cash and not leave a 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 could protect your personal information better and thus avoid title fraud. If the scammers do not have any of your personal information; they cannot create fraudulent documents.
When you are searching to purchase a home, it is critical to have a realtor to assist you in finding what you are searching for. However, you ought to be careful as the scammers are now lying that they are real estate agents. To avoid their scams, be sure to work with credible realtors and have online reviews that confirm that they are legit.