The scary truth about real estate scams is that they can cost you your dream home. The best way to avoid getting cheated out of your hard-earned cash is to stay informed of the latest tricks that criminals are using.
A healthy dose of caution is also advantageous. Once you’re aware of the potential pitfalls, you can look for your ideal home on GotProperty.
The real estate industry doesn’t have high online security, which makes it easy for hackers to hijack your agent’s email account. When real estate agents use public Wi-Fi in coffee shops, it also makes them an easy target for hackers.
Posing as your agent, they’ll send you an email asking you to transfer the closing funds to their bank account. Once you’ve followed their instructions on where to send the money, you can say goodbye to your hard-earned cash as it vanishes into the hackers untraceable account. Hacking into unencrypted emails is a prevalent real estate scam but it’s also common across other industries
Another one of the many real estate scams is identity theft. Cunning criminals look for victims whose identity they can steal so that they can pose as the property owner. In this scenario, the scammer creates fake documents so they can pose as the owner with the aim of taking out an additional mortgage on the property.
Once they’ve obtained the money, they disappear with it, leaving the legitimate owner to make the repayments. When it comes to real estate scams, it pays to be wary of title fraud.
Scammers copy valid rental listings and repost them with a lower monthly rent. The bargain price attracts prospective tenants who are eager to rent the property. In their haste to secure the rental, they send a deposit through without double checking the legitimacy of the listing or viewing the property.
The money goes into the scammers account never to be seen again. The bottom line is, if the rental price seems too good to be true, it probably is.
In this real estate scam, an unlicensed realtor makes a sale on the house but instead of depositing the check into the escrow account they put the money into their own account.
When you’re selling your property, be wary of dishonest buyers. A sign of a real estate scam is when the buyer agrees to purchase the property for an amount that is above the market value. The generous deal prompts the seller to seal the deal by signing the contract. Once the seller has signed the contract, they are obligated to sell the property to that person within a specified time frame.
Once the time is up, the crooked buyer asks for an extension. The seller loses out because they’re responsible for taxes and utilities during this period. Next, the buyer starts to protest that the agreed upon price is too high and they ask for a reduction. With the threat of the deal falling through, they wear the seller down over time so that they finally negotiate a price that is below the market value.
Now that you know what to look out for, you can start looking for your dream home on GotProperty.
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