Real Estate Scams to Avoid

23 July 2013

With the current atmosphere in the real estate market, buyers are becoming more and more aware of the attractiveness of owning a home. Despite recent mortgage increase, affordable homes are still available. Yet now that buying a home becomes more of an option for many, along come scams that would certainly make the experience less than worthwhile, to say the least. Here are some of such cheap cons and ways to avoid them.

Rental properties are also on the rise. With investors snatching up properties left and right, it is no wonder than renting is starting to make a comeback. However, future renters should be wary of scammers who scrape listings and repost on another site. These people will pose as an agent, asking money upfront as security or broker fee. Others might also ask prospects to wire money to a “friend” to prove that cash is available. Before sealing the deal on a rental property, renters should first check out a list of websites that contain such phony listings. Asking cash upfront or wiring money should serve as red flags that must be avoided.

Aside from rental scams, distressed homeowners are also facing a devious ploy from some people. Phony foreclosure counseling, loan auditing and government loan modification programs are just some of the things foreclosed homeowners are vulnerable to. Make sure that documents are well reviewed first and that the person offering the service has been thoroughly checked.

Lastly, with the increasing attractiveness of buying a home, many are still finding it hard to buy a property. Whether they are priced out or outbid, the new scams that can harm them are fake workshops. These get-rich-quick seminars are only out for money. They promise an easy way to earn cash but never succeed in delivering such promise. Buyers and investors should be aware that there are no shortcuts when it comes to earning high returns. If it’s too good to be true, then it probably is.