Everything You Need to Know About Common Real Estate Scams

Spotting a real estate fraud in time can save you a fortune. This is why it is important for anyone who is investing in real estate to have an awareness of popular scams in the real estate industry. The only way to prevent becoming a victim of real estate fraud is to be ready when they come. This Chris Neufeld guide will help you make an informed decision when looking to buy or sell a real estate property.

Real market knowledge cannot be replaced even by extensive education, and this should be your priority when looking for a realtor. Ensure that the real estate agent that you hire can provide you with quality services for your money. You can even ask for references or client reviews as proof of their suitability. You may be surprised to know that real estate scams are significantly more prevalent than you may assume. This is even magnified when there is uncertainty in the economy and the real estate sector. Even when the economy is doing well, real estate scammers find ways to extort a lot of money from their unwitting victims.

One common real estate scam involves a tactic called bait and switches property buying. This involves trapping you using a vanity offer by first ensuring that you agree to their deal and sign a contract as you wait for the inspection. During the inspection, a list of many different problems appears all of a sudden. This makes the buyer cut down substantially from the agreed initial offer. You may realize that at this point, you can be compelled into completing the deal. If you think that a deal might be too good to be true, you should expect that it probably is a scam. Ensure that you read the reviews posted by previous clients to avoid such scams. Additionally, refer to the Leisure Blog for more insights on what to avoid when doing real estate transactions.

The next relevant scamming method is the Escrow wire fraud. This is mainly performed by tricking you into sending fraudsters money as a down payment for a place that you did not select. All this is done before you have signed all the paperwork, and many people have lost their money in this real estate scam method. It is better if you seek in-person verification before wiring any amount. You should be on the lookout for any fishy real estate agents who will use various tactics to extort you out of your cash.

Be wary of any realtor who promises you a kickback, and does not send you a written offer form. Education is a never ending process, so continue reading more about this topic here: https://en.wikipedia.org/wiki/Real_estate_agent.