Real estate scams:

Real estate scams are fraudulent activities occurring in real estate sectors. Real estate scammers cheat people in  several ways. For example, they pretend to be real estate agents and convince people into buying properties that are either defective or non-existent. They  may also post fake offers for real estate on social media or on real estate websites. They even provide a link that leads property buyers to fake real estate web pages. These false web pages try to access buyers’ details and steal their money. Therefore, property buyers lose money and suffer huge losses. Hence, they should learn about real estate scams and implement various alternatives to stay safe.

Classification of real estate scams:

Realtor scams are the worst type of scams. People lose money and suffer a lot as a result of trusting the wrong folks. So, various real estate frauds are mentioned below to make you aware of real estate frauds.

• Rental real estate frauds:

Rental scams can occur when the owner tries to hide the features and the defects related to his property from the tenants. It can also happen when the owner posts fake advertisements about his non-existent properties on social media or real estate websites. The owners disappear as soon as they receive the rental amount from their tenants. For example, If A wants to rent a house  at a posh locality in Dallas, Texas, He/She may look up across online real estate platforms. A comes across a place that’s out for rent, through an ad on Facebook. A gets in touch with the property owner who posted that ad. The owner requests A to pay the rental amount before beginning to rent on his property. A pays the rental money. When the time comes for A to move into that rental home, he realizes that the place is non-existent and that the owner was a fake one.

• Value real estate scam:

In a value scam, the owner does not disclose the necessary information about  his property to the tenants. Instead, the owner gives false details about the actual value of his property.

• Rushed sales:

In the rushed-sales fraud, the scammers pretend to be real estate professionals. They try to convince you to purchase a property immediately. They mention that if you do not act now, you will not get such a great chance again. They try to create a situation where there are fewer properties and less time left to purchase. Later when you pay for the property, scammers simply disappear with your money.

For example, B wants to purchase a house in California. He comes across a post on social media about a house that’s ready for accommodation. Then B contacts the owner about this, and the owner convinces B to pay for the house immediately. However, the owner says there is only a limited period left for purchase until the offer vanishes. Panicked by their words, B pays the amount. However, when B tries to move into the house he just bought, he finds the house defective and not worth the price. That’s the moment when he realizes that the owner has cheated him and stolen his money.

Red flags of realtor scams:

The below-mentioned red flags will help warn the property purchasers about the realtor scam indications. Going through these warning signs or red flags will assist in easily understanding and avoiding real estate frauds.

1. You may desire purchasing a property at a well-fitted location. But the seller wants to close the deal quickly with you. Please don’t give him a chance to sell off the property in an instant. It is a strategy that scammers use to dupe property buyers and steal their money.
2. Don’t buy a property which is defective and of a low-quality. It often happens when scammers don’t permit you to check the property before purchasing.
3. The property purchaser wants to look at the seller’s property documents, but the seller is not interested.
4. Sellers who do not permit buyers to visit the site of the property, as per buyer’s convenience, make for a red flag. Real estate purchasers generally visit the property site before purchasing it. Before purchasing any real estate possession, if the seller asks you to deposit money before viewing it, then it is not the right move.
5. Be careful if you get any email, text messages, or social media posts regarding the available properties on sale. Don’t click on the link or contact the phone number mentioned in those messages. If you do, then the cheaters may acquire your personal data.
6. Cheaters in the real estate business contact you and force you to buy a property at a random location. Don’t believe them or get into their trap.
7. So-called real estate agents may offer you houses for rent at a  lesser rate. It means these rental rates can be lower than the real estate market rates. It denotes that the real estate agents are trying to trap you in a rental scam, seeking to grab your money.
8. Don’t pay a rental amount to any property owner before looking at the real estate property you want to rent.
9. Any person may claim to be a real estate professional. If you doubt that person’s qualifications, don’t acknowledge him or her.
10. Beware of the scammers who ask you to provide your personal information.

Preventive measures:

Real estate scams are risky enough to trap you and make you land  in trouble. So, here are some measures to prevent you from becoming victims of these scams.

1. Before purchasing a property, remember to visit their site and review the documents associated with the property.
2. Any pressure from a real estate scammer regarding the property purchase should be reported to the cops.
3. Only proceed with real estate deals if you are confident with the qualification of a real estate agent.
4. Do not click on the links provided on fake real estate property offers on social media or text messages. They could lead to counterfeit real estate websites that steal your personal information.
5. Knowing the warning signs and types of realtor scams is necessary.
6. Make sure to only rent a place after you’ve taken a look at it.
7. Remember to go through the purchasing process of the property with the help of legal experts who deal with real estate cases.
8. Don’t pay money in advance before purchasing a property.
9. If the seller does not disclose any features and other necessary information related to his/her property to you at the time of the real estate deal, do not hesitate to report the incident to the cops.

Conclusion:

People looking forward to purchasing properties should know about realtor frauds and their red flags. People should also educate themselves on preventive measures to avoid these frauds.