Avoid Real Estate Scams

With such a huge investment, you’re bound to encounter unsavory people who are trying to take advantage of you. There are a few rules to follow to ensure you don’t fall victim to a real estate scam.

• Research an agent – Always research an agent before doing business with them. Make sure their license is up to date and there aren’t any outstanding complaints against them.
• Always meet an agent in-person – Do not sign anything with an agent or give them any money (you shouldn’t directly give your agent any money at any point in the transaction, really) until you’ve met them in person. Don’t agree to work with an agent until you’ve met them in person.
• Always double check before you wire money—never pay cash – Certain scams involve people posing as agents or sellers and requesting deposits from buyers. Your agent will not request money from you (they are paid by the seller when the transaction closes). There have been instances of hackers hacking agents’ email accounts and requesting money for a closing. If you ever get an email from your agent suddenly changing details of your closing or asking you to send money, call them to confirm.
• Don’t give out personal banking information – With the exception of a mortgage broker or lender who is getting you pre-approved, there’s no reason to give any seller or agent your personal information. This includes your social security number and banking information. If your agent requests any sensitive information, call them to confirm that they are making the request and what it’s for.
• Trust your instincts – If a deal sounds too good to be true, it is. If a home is listed at $100,000 below the market price and the seller is rushing to close, something is wrong. If the seller is being aloof about the home’s condition, it’s OK to be suspicious. The allure of a good deal might be overwhelming, but always go with your gut instinct. It’s a cliche, but it truly can’t be said enough—particularly when it comes to an emotional investment like a home.
• Ask a lot of questions – There are some sellers who will try to deceive you about the condition of the home. Don’t be shy about asking a lot of detailed questions about its history and its condition.