5 Real Estate Scams not to Fall For In 2021
Real estate is quite a lucrative business. Whether you engage in it as a licensed professional or a novice flipper, when done right, it can boost your financial need.
Finding a house takes processes such as searching for it, either on the internet websites or physically going to the location you are trying to get a house. However, there are deals you may want to avoid since, in the end, they may lead to financial loss which can be very devastating.
In this article, we will discuss the real estate scams you should avoid since you may be getting into a trap in case you encounter them.
1. Rental swindle
When looking for a house, be it a rental or a house to buy, using a trusted website can be the best option, ads on websites or Facebook postings are also legit, but they are not real estate sites meant to do real estate advertisement.
It is easier for a fraudster to post an advert for a house, ask for money as a security deposit once they receive the money they disappear. These fraudsters target mostly first-time house renters.
It’s required that you see the property in person, ask questions and ask for the required deposit by the owner. If you see the seller asking for payment of property before the visit, the pos,t if it is from a social media account with no pictures, this may be a fraudster.
2. Unlicensed real estate agent
Before beginning any real estate transaction via a real estate agent, ask for their license to ensure the transaction is transparent.
Beware they may have an expired license. Testimonies from previous clients on their social media pages does not mean they have a license for a real estate agent profession. Real estate transactions are usually time-consuming and expensive but it worth investing your time in the right agent.
3. Real estate lawyers that are fake
Impersonation of real estate lawyers is rare and new but it's good to watch out for this scam in the real estate business. Better be safe than sorry. Imposters impersonate real estate lawyers in order to claim a given percentage of the sale for themselves. However, you can identify the lawyer if they are legit using the following ways:
- Check the graduation list online from the law school they graduated.
- If the seller had provided the contact information of the lawyer when he/she comes then that lawyer is likely to be legitimate.
- As a buyer, you can check with the seller to see if the descriptions match with the one who has come.
The lawyer is likely to be illegitimate if:
- The seller isn’t aware of him/her
- The lawyer reaches out independently without the seller.
- The lawyer lacks a professional presence online.
- House plastic surgery
Looks can be deceiving therefore when buying a house ensure you do your research well about the house. You can even ask for paperwork showing that routine inspections have been performed to ensure you get a perfect house for yourself.
The reason why the above is worth doing so is that sellers often are in a hurry to get the deal closed therefore because of the time frame they give, you may hurry and get into their trap. Whether it’s mold, termites or poor paints used unethical contractors will hide it if possible.
If the seller is unwilling to give out routine paperwork of inspection, closed doors or taped-off sections of a property might be a sign of a rip-off.
5. Loan scam
Some loans are too good to be true many times they are often scams. They are presented in form of “mortgage agency” loan companies that are fraudulent assure discounted loan rates for an upfront fee.
it is a good idea not to rush to sign that deal, do some research. Moreover, ask for testimonials or references from past clients who have used their services.
These are some of the swindles that you can encounter in real estate therefore, as you do your real estate business investments watch out for frauds.
What some of the scams you have encountered in the real estate business? Comment in the comments section