Real Estate Scams can affect anyone regardless of your eduction or wealth.
Buying a home is a major life event. As a result, it is as stressful as changing careers, getting married, or having a baby. This is not all that surprising. For many people, buying a home is the largest purchase they will ever make. Moreover, a person’s entire financial health relies on making good choices. Nonetheless, because so much money is on the line, real estate attracts some unscrupulous characters, and the stress of home buying can have you ignore the warning signs. Today’s article shares some of the most common real estate scams you need to keep an eye out for.
Regardless, having a well established, licensed real estate agent in your corner tends to be the best way to avoid real estate scams. There are those out there waiting for unwary home buyers. While you should educate yourself about these real estate scams, a reputable real estate agent on your side will reduce the chances that you will become a victim.
Common Real Estate Scams
1. Hacked Emails – Imagine finding your dream home. You are making an offer and need to provide earnest money. There is an email from your agent asking you to send the money using the provided link. The next thing you know, you just sent the money to an unknown account, in another country. This is a scam that can even occur at closing. Hackers are patient and will wait for the best time to strike. Only respond to verbal requests for funds.
2. If I Can’t Sell Your Home, I Will Buy It – This is a common scam pulled off by unscrupulous real estate agents. They promise that they can sell your home within a certain amount of time. But, if they can’t, they will buy it themselves. However, these guarantees often require that you agree to terms that are not in your favor, such as accepting the agent determined asking price, scheduling pre-determined price drops, a requirement you buy your next home through the same agent, or you must buy a home listed with their brokerage.
3. Moving Company Holds Your Stuff Hostage – This is so common that the U.S. Department of Transportation provides people with warning information. After going through the stress of buying a home, many people would rather not deal with the actual move. So, they hire a moving company. However, after driving away with your stuff, the moving company decides they want more money that they originally quoted. If you want to get your household items back, you need to pay more.
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