I’m sure you don’t need anyone to tell you that there are real estate sellers, agents, or buyers that defraud people of their hard-earned money on a daily basis. With the constant rise in housing demand, it’s no wonder that some people can be easy targets since they are in desperate need of the properties at the time. Whether you are buying, selling or renting a home, there are real estate scams to look out for.
Sometimes, these guys sell an apartment that is owned by someone else or rent out a property that is up for sale. So, the genuine question is: how do you know if you’re about to be scammed in a real estate transaction? The truth is, usually, you can’t know if you are about to be scammed but there are warning signs and steps you can take to protect yourself from the activities of scammers. Even if you are working with honest people, these are safe ways to approach buying, renting or selling any home. And so, as an extra precaution, always keep the following tips in mind:
1. Don’t Rush the Buying/Renting Process
Perhaps it was super difficult and stressful to find that really nice cool place and so you most probably want to act quickly so you don’t lose the offer to someone else but the problem with rushing the buying or renting process is that you have little time to question the real estate transaction and find out about essential details of the property.
Take a chill pill and objectively analyze the deal and be sure there are no red flags, if it seems too good to be true then it is advisable to step back from such transactions. It is better to be safe than sorry.
2. Make Use of Verified Real Estate Agents
Avoid using agents that don’t have any reference and are not verified. Make thorough research. You could source for information online, or simply ask for referrals from people you know and review their past works.
If you feel something is wrong with the person involved in the real estate transaction, then you need to take a step back, do more research about that person or simply walk away. Don’t work with any person you have no confidence in.
3. Ask Questions
Just as the saying goes, a person who asks questions never misses his way, ensure you ask questions, especially about any unclear issue concerning the transaction. Some questions you feel are not necessary, matter. Ask the agent the reason for the sale, if there is no reason for the sale, that can be a red flag. Questions are important because they help reveal inconsistencies in real estate transactions. Thus, the Real Estate agent should be able to make out time for questions and answers.
If you spot any kind of red flag that cannot be clarified then you need to rethink your involvement in that transaction.
4. Never skip Inspection
This is a process that shouldn’t be skipped. A significant red flag for any real estate transaction is when the homeowner or agent is giving no room for inspecting the house. When there is nothing suspicious to hide then inspection is not negotiable.
You should make out time to inspect the property personally to ensure you are not being scammed. It is your right to see and inspect what you’re paying for. if not granted by the homeowner or agent then it is advisable to terminate the real estate transaction immediately.
5. Avoid paying cash
Tread carefully, when it comes to paying in cash for any real estate transaction. The problem with paying in cash is that the money is not traceable unlike paying in a bank. Insist on writing checks or paying at the bank as it is safer that way.
In case the transaction goes wrong, you want to be able to hold someone accountable when all is not what they seem; so be careful and avoid payments you can’t trace. If the agent or house owner is insisting about paying in cash, then you should walk away from that transaction.
Fraudsters are becoming more cunny and no one is immune to their tactics, so, it is advised to refrain from giving out your personal information or bank information over the Internet or phone, especially if the situation doesn’t feel right.
Have you been involved in a real estate scam before or do you know someone who has? Kindly share your story, so someone else can learn from it. Drop your comments below.