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Like any industry, real estate has its share of scammers and con artists. Scams have become more sophisticated over time as thieves work to take advantage of changing technology and individuals who are sometimes desperate to make a deal. Learning to recognize and avoid these traps is essential to saving you time, stress, and of course money. The real estate legal team of LaFountain & Wollman P.C. offers some practical advice for guarding your wallet and your peace of mind.
Be Careful With Social Media
We all know that social media can be an enjoyable way to share our lives and connect with others. However, putting too much of your private information online will increase the chances of drawing unwanted attention. Some individuals overshare details regarding their life situations (including, for instance, their desire to purchase real estate) which might invite scammers who prowl online looking for their next victim.
Consider making your posts and status updates private if possible, and don’t accept friend requests from individuals you don’t know. If a stranger reaches out to offer a helping hand in response to your social media content, beware that this person could be trying to take advantage of you.
Do Your Research
Some deals and companies sound too good to be true because they are. Real estate deals can be found anywhere, but that doesn’t mean they are beneficial to you. A mortgage company, lender, or agent could offer you something that nobody else can because it’s a scam. Meanwhile a piece of property might sound like a steal, but the person offering it could be trying to steal from you.
Conduct research by looking into the individual or company that you wish to do business with. Check with any licensing boards (for instance, brokers must be licensed in Massachusetts) to make sure the individual is authorized to conduct a real estate transaction. Visit the Better Business Bureau website, check online reviews, and ask others who have done business with the individual or company about their experiences.
Watch Out For Phone and Email Scams
Phone scams have been around for decades and no industry, real estate included, is immune to them. Someone you’ve never heard of may call to ask about refinancing or selling your home, promising not only a good deal but even affiliation with a government program. Email scams are similar, with the caveat that many of these are phishing emails designed to steal your identity by asking you to click a link.
If you receive an unsolicited phone call, do not give out any information. Hang up and block the number and consider reporting the company (if it is identified) to the Federal Trade Commission or a similar organization. As for emails, keep your spam folder empty and never open messages from an unfamiliar sender.
Know the Various Types of Scams
There are far too many real estate scams to list them all individually, but a few of the most common ones are:
- Using bogus financial documents: An identity thief may pose as a buyer by stealing financial data from an innocent victim and then passing it off as their own. This scam not only victimizes the person whose information has been stolen, but it could victimize you if you close the deal. These fake buyers are often not represented by a licensed realtor or law firm.
- Refinancing scams: Everyone is always looking for a better interest rate, especially considering that rates have been relatively high the last few years. You may get a phone call or other correspondence promising to save you money by refinancing your mortgage. Beware of repeated assurances that the individual or entity is either “authorized” or approved by the government.
- Fake real estate agents: It’s not difficult for someone to lift another agent’s online information (including a property listing) and then pass it off as their own. An insistent real estate agent may use high-pressure tactics like requesting you to wire a significant amount of money as a down payment. Conversely, a professional will respect your time and allow you the due diligence to thoughtfully consider the transaction. Do your research and make sure the agent is legitimate.
Ask Us To Help Guide Your Real Estate Deal
If you are considering a real estate transaction, you should speak with a lawyer to make sure your best interests are protected. You can also check with an attorney to ensure a proposed deal isn’t too good to be true. LaFountain & Wollman P.C. is ready to assist you with all aspects of real estate sales, purchases, and more. Call us today to get started.