Protecting Your Investment: 6 Tips to Avoid Real Estate Scams

Work with a Licensed Professional: This is the golden rule of avoiding Real Estate Scams. Always choose a licensed real estate agent or broker who can guide you through the transaction process and protect your interests.

• Benefits of Working with a Professional:
  • Market Knowledge: A qualified agent has a deep understanding of the local market, including current pricing trends and red flags to watch out for.
  • Negotiation Expertise: A realtor will represent your best interests during negotiations, ensuring you get a fair deal.
  • Legal Guidance: Your agent can guide you through the legal complexities of the transaction and ensure all paperwork is in order.

Beware of “Too-Good-To-Be-True” Deals: If a property seems unrealistically priced or comes with unbelievable incentives, approach it with extreme caution. Real Estate Scams often lure victims with deals that sound too good to be true because they usually are.

• Red Flags to Watch Out For:
  • Significantly lower prices compared to similar properties in the area.
  • Sellers who are unavailable to show the property in person.
  • Urgent pressure to close the deal quickly without proper inspections.

Verify Everything: Don’t take anything at face value. Always verify information about the property, seller, and any involved parties. Here’s how:

• Property Verification: Conduct a thorough title search to ensure the seller has the legal right to sell the property. Verify the property’s condition through inspections and avoid relying solely on online listings or verbal descriptions.
• Seller Verification: Research the seller’s background and confirm their legitimacy. You can use online resources or reach out to the local real estate board for assistance.

Never Send Money Upfront: Legitimate transactions rarely involve upfront payments, especially for wiring money overseas. Be wary of requests for deposits, security fees, or earnest money before a signed contract is in place and all due diligence has been completed.

• Safe Payment Methods: Always use secure payment methods like escrow accounts or certified checks to ensure your funds are protected until the transaction is finalized.

Protect Your Personal Information: Avoid sharing sensitive information like your social security number or bank account details with anyone you haven’t verified. Real Estate Scams often involve phishing scams to steal your personal information for fraudulent purposes.

Trust Your Gut: If something feels off about a deal, a seller, or the entire transaction, trust your instincts. Don’t be pressured into rushing a decision. If something raises concerns, step back, reassess, and consult your real estate agent or a lawyer.