Published March 15, 2023
How Buyers Can Avoid Property Scammers
When buying or renting a property, it's important to be cautious and aware of the potential for scams. Property scams can take many forms, from fake listings to fraudulent agents, and can cause serious financial harm if you fall for them. Below are some common property scams and tips for avoiding them.
Fake Listings
One of the most common property scams is fake listings, where scammers create fake ads for properties that don't actually exist or aren't for sale. Renters are often fooled by these too good to be true offers. The scammers may use photos of real properties or even steal them from legitimate listings, and they'll usually ask for a deposit or fee to hold the property or start the rental process. Often the scammer is not able to meet in person, asking for the money to be sent via Venmo, CashApp or other apps.
To avoid falling for fake listings, be cautious of listings with prices that seem too good to be true, or if the property's owner is not willing to meet you in person or show you the property. Always verify the listing's information with a local real estate agent or the local property records office, and be sure to do a thorough search of the property and its history before making any payments.
If the listing is for a rental, search the address on google to see if any “For Sale” sites come up. Call the number listed on the For Sale sites and ask if the owners are renting the house. This is one of the biggest scams. Houses for sale are listed fraudulently on Craigslist or other rental sites and the sellers may have no idea.
Fraudulent Agents
Another common property scam is fraudulent agents, who pretend to be licensed real estate agents and take advantage of unsuspecting buyers. These scammers may promise to help you find a property, only to disappear with your money or give you false information about the property.
To avoid fraudulent agents, always verify the agent's license and credentials, and check with the local real estate board to ensure that they are in good standing. In Maryland, you can look up the agent’s real estate license at the Maryland Department of Labor. You can search by name and city and will be given their license number and expiration date if they are legitimate..
You can also ask for references from previous clients and do a background check on the agent. Never give out your personal information or make any payments until you have verified that the agent is legitimate.
If they ask you for a down payment or earnest money, never write the check out payable to the agent or transfer money directly to them. Earnest money needs to be held in a special account by the broker and should ever be co-mingled with an agent’s personal money.
Is the agent being pushy and telling you that you need to act right now or you’ll lose the property (even if you haven’t seen it). Rushing you into a decision can also be a sign of a scammer or fake agent. By applying pressure they are hoping you’ll let your guard down and not check out the references or any other items on this list.
Phishing Scams
Phishing scams are a common type of property scam, where scammers send emails or messages posing as real estate agents or companies, asking for personal information or payment. These scammers may also create fake websites or forms that look like the real thing, and trick you into entering your personal information or making a payment.
To avoid phishing scams, be cautious of unsolicited emails or messages, and never give out your personal information or make a payment unless you are certain that the request is legitimate.
Always verify the sender's identity, and if in doubt, contact the company directly to verify the request. Never use the phone number given to you by the sender.
Remember that you aren’t being rude by slowing things down so you can check credentials and do your own investigation. Any legitimate agent or brokerage will understand, whereas scammers will continue to push and apply pressure to keep you on the hook.
If you're thinking about buying or selling and would like a no-obligation consult to see how we can serve you, contact The Norman Home Team at 443.489.5225! Visit our website for information on all the services we provide We look forward to hearing from you and helping you achieve your goals
443.489.5225
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