How to avoid real estate scams

Real estate is rife with scammers preying on those who need to sell or are in financial distress. Don’t let yourself become a victim. These are the patterns to know before you sign anything or send any money.

Common real estate scams

Nine patterns that show up again and again. If what you are hearing matches one of these, slow down and check before you sign or send anything.

1. Wire fraud

   Criminals impersonate agents by email or phone to trick you into wiring closing funds into a fraudulent account.

   How to protect yourself: Verify any request for funds directly with your agent or title company, by phone, before you pay.

2. Loan flipping

   Predatory lenders push homeowners to refinance again and again, charging high fees each time and draining equity.

   How to protect yourself: Work only with lenders you already know and sought out yourself.

3. Foreclosure relief

   Scammers promise to stop a foreclosure for an upfront fee, then disappear or take the title.

   How to protect yourself: Never pay upfront for foreclosure help. Talk to your lender or a HUD-approved counselor.

4. Equity stripping

   A “buyer” takes the deed, rents the home back to you, and pulls out your equity.

   How to protect yourself: Never sign over your deed without a licensed attorney reviewing the deal.

5. Home inspection

   Fake inspectors invent expensive problems to push a lowball offer or a costly repair.

   How to protect yourself: Check the inspector’s license and get a second opinion on big findings.

6. Rental scams

   Fraudsters list your home for rent without your permission and collect deposits.

   How to protect yourself: Search your address online and report any listing you did not create.

7. Moving scams

   Movers quote low, then hold your belongings until you pay much more.

   How to protect yourself: Use licensed movers and get a written, binding estimate.

8. Title or deed fraud

   Someone forges documents to move ownership of your home out of your name.

   How to protect yourself: Sign up for your county’s property fraud alert and monitor your records.

9. Mortgage fraud

   “No strings” loans switch to higher rates or hidden fees after you sign.

   How to protect yourself: Read every page and compare the final terms with what you were promised.

Red flags when talking with a buyer

• Lack of proper documentation

  Ask for proof of funds. A wholesaler can’t provide it, because they aren’t the real buyer.

• Pressure to act

  “Act now” or “lose this forever” is a sign of fraud, not a real deadline.

• Too good to be true

  A one-week promise with a 30 to 60 day contract means they need time to find an investor.

How to sell your house without getting pickpocketed

1. Enter your home information
2. Schedule a property visit
3. Accept the purchase contract
4. Schedule the closing