4 Common Real Estate Scams That Will Cost You Thousands
We’re grateful that in our 20+ years of real estate experience we haven’t had many run-ins with scammers. Many people aren’t that lucky.
Linda received a letter in the mail recently that gave her pause and when she brought it to our team meeting, we realized that we all had stories and scams that we know to watch out for. Here’s a few that we are wary of and that we advise our clients and friends to be savvy about too. As always, if you have a real estate question, give us a call at 321-300-4750. We’re here for you.
Wire Fraud
One of the biggest real estate scams is wire fraud. This is when you get a call or an email from someone “at the title company” telling you to wire money and then they steal it.
This one comes up so often that our office has a special disclosure that we provide to all buyers and sellers about it.
Often scammers will change a letter in the company’s email address (like making an “m” and “rn”) and then send emails “from the company” with false wire instructions. This is an extremely effective scam because they use the urgency of the transaction to make you feel like you have to rush to send money and then once it’s been wired it’s very difficult, if not impossible, to get it back.
The best bet is to pick up the phone and verify with your agent and the title company that you’ve got the right information. Don’t use the contact information in the email, search for it independently or get it from your agent to be safe.
2. Moving Scams
Unfortunately, moving is an incredibly vulnerable and chaotic time for many people and there’s a lot of companies who take advantage of that.
The most common scam is for a company to give you a low quote and then to pack up all of your goods and when they get to the new location tell you that it will be a much higher amount.
Here’s some tips we’ve learned over the years: always get the quote in writing, if someone is willing to give you a quote without actually asking for the specific details of what you’re moving then they’re probably not trustworthy, and make sure that you get the company’s license number so that you can verify their status with the Better Business Bureau.
3. Rental Scams
The general rule of thumb on a rental scam is “if the deal is too good to be true, it’s not true.”
Often, scammers will steal pictures of beautiful homes that are for sale and repost them on Craigslist or similar sites with false information.
There are a few ways to double check this. First, you can upload the image to Google Images and do a reverse image search to see if the photos are from a different property. You can also take a look at other rentals in the area. If the one you’ve found seems to be priced much lower than the competition, it’s likely that it’s not real.
Also, if you’re required to pay any money before seeing the property, it’s likely not real. Scammers will collect an “Application Fee” from you to “verify your credit” before letting you look at the property. If you haven’t seen it in person, assume that it’s not real.
4. Post-Close Scams
Lastly, this is the one that started the whole thread. After a closing, your name goes into the public record via the property appraiser’s site. There are many companies that will prey on new home-owners or sellers by telling them that there is paperwork that they need to purchase or warranty-deeds that they need to file. The mail that they send can look very official and intimidating. It’s not surprising that many people fall victim to it.
In any case, we want you to be safe rather than sorry. If you have any questions or doubts about whether something is above board, give us a call. We may not always know the answer but we’ll work diligently to help you find out the facts and keep yourself, your family, and your information safe.
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Steven Ritz, Buyer Specialist - Call 321-277-8271 or email here
Linda Sitek, Listing Specialist - Call 407-963-6544 or email here
Brought to you by Abode at Keller Williams Winter Park Realty
