Real estate is a tricky business whether you are renting or buying. A lot of people often take advantage of complicated terms to swindle others who don’t have a clue about the gravity of having to own or sell properties.
In today’s saturated world of technology, scams and hoaxes have also risen especially that property owners and real estate agents are eager to sell a unit. Scrutinizing every attractive offers and being skeptical about every contract is a significant step to prevent scams. The things listed below are the most common real estate scams and how you can avoid them.
Rental Scams Online
In today’s generation, people want everything to be smooth and efficient. Looking and searching for the desired property is just one click away. Most of the time, scammers do their listings online and post it to legit websites which strengthens their schemes.
To avoid these type of scams, make sure that you’re cautious when you are asked to transfer funds. It means that if scammers ask for a deposit before you signed the legal papers, they can’t show you the property, or use a third party, then you have to review before wiring.
Be Cautious of Title Fraud
Although less frequent, title fraud are cruel real estate hoaxes. Title fraud takes extra deposits away from legit buyers. This scam includes will also include another serious crime known as identity theft.
For this tactic, the fake party will produce counterfeit documents to appear that they are the owner of the property. Utilizing this information, the scammer will get a new lease on the property. Using a secured loan, the wrong owner can get cash and then drop the original owner high and dry with existing payments.
Keep an Eye on Loan Modifications
Loan modifications include upfront fees, alternative financing options, and unsolicited calls from unknown agencies. Most of these callers targets homeowners facing foreclosures and claim to have offers that can save their property. These methods often involve unaware owners to pay “seemingly reasonable” fees in exchange for a quick fix of their situation.
The scammer will discuss a realistic solution to your foreclosure issues like reducing the mortgage payments with a low fee to access your bank account information. Also, some of these companies may have credible websites. Keep your eyes peeled because these scams often have lots of victims.
Sadly, some property owners who are facing foreclosure list their properties in the market either for purchase or rent. In this case, homeowners try to collect fees to possible buyers when they get the fees and when foreclosure date comes they will be forced to leave the property, and you lose your money.
Don’t be too Overconfident
When we buy properties and know about how real estate market works, most of us try to be overconfident that we know everything.
Before you trust anyone or someone who’s selling the property to you, always avoid transferring money upfront. Moreover, always look for a credible and reliable real estate agent that is familiar and is successful. Do some research before buying anything and double check the rules of estate market.
If you are ready to start entering the real estate market whether you are a buyer, existing owner, or renter, you always need to be mindful of estate scams and don’t get swindled. Seek help from experts like Rose & Jones and don’t get caught yourself off-guard.
Once you have an idea about how to keep away from scams and hoaxes, you’ll get to enjoy the fruits of your labor without a hitch.