In a perfect world, buying a real estate property is easily achievable. You’d look for a property to buy, negotiate, settle payment and terms, and close the sale. Then, you’ll be moving into your new house, and the rest is history. But again, this is if you’re living in a perfect world. The reality is, you’re not, and a real property transaction can prove to be a daunting and nerve-wracking experience. At worst, it can even be a nightmare, especially if you turn out to be a scam victim in the end.
It’s easy to say and remind everyone to be careful of becoming a scam victim—until it happens to you. There’s nothing worse than having to go through something traumatic when you initially thought you’re about to make a lifelong dream come true. Just thinking about the possibility of becoming a victim is terrifying enough. That said, you need to make sure you know how to avoid being a real property scam victim.
Recognizing The Signs Of A Phantom Property
One of the most common scams in the real property industry is a phantom property that seems difficult to see in person for reasons you can’t understand at all. Suppose you see a listing you liked. The neighborhood looks nice, the property’s condition is also impressive, and you know that’s the one you’re looking for.
But when you start contacting the agent or the landlord, they’d always come up with excuses whenever you mention your desire to see the place. It’s either they’re too busy, someone else is viewing the property, or other reasons you don’t find too believable. These are some of the telltale signs there’s something fishy going on.
What you might want to do is make sure the property really exists. You can drive by the area or check Google Street View so you can have an idea whether the property is there or if it’s an incorrect listing.
If it’s a condo unit, you may not be able to see the place immediately if there’s a tenant presently occupying it. But the real estate agent or landlord should be able to give you a date for you to go back and see the unit personally. If they keep on asking you to reschedule or wait for another time, that’s a major red flag to consider. It might be that something’s wrong with the property, or it’s a plain and simple scam.
✋ Warning
Here is how you can ensure your business is not receiving scam offers.
On Upfront Payments And Security Deposits
The availability of digital marketplaces makes it possible to list and view properties without driving by the area to check them. The internet is utilized in posting pictures of the place, and from there, you can decide if you like it. You may also request a virtual tour of the property.
As convenient as that may be, the advancement of technology also paved the way for scammers and fraudsters to swindle home buyers. There may be a listing, but the problem is if it’s the legitimate agent or owner you’re dealing with online. How do you determine if it’s a potential scam or not? Sometimes, the easiest way to tell is if the person asks for an upfront payment almost immediately after you express your interest in the property.
This type of scam often targets young adults and first-time renters. If they’re asking you for a security deposit or an upfront payment even when you haven’t seen the property yet, that’s probably a scam waiting to happen. Don’t easily fall victim to this fraud, and check first if the website or listing is indeed legit. Ask to see the place in person and make the negotiations upon meeting. There should also be a contract before you make any form of payment, may it be a deposit or a down payment.
Other Red Flags To Run Away From
Scammers are getting more and more creative in coming up with new con tricks and swindling techniques. If you’re not careful enough, you’ll be a willing victim who doesn’t even have the slightest idea of what’s about to happen.
Be sure to check other red flags that could be an indication of a scam. If the offer is too good to be true, that’s probably because it is. Know how to check listings online and look for reviews and testimonials from previous clients.
When viewing a property, be wary of any recent cosmetic changes that could mean damage in the house or something else the owner’s trying to cover up. Taped-off or closed doors sections in the place may also be another red flag to be aware of.
Conclusion
The process of acquiring a new property should be an exciting and happy experience. Don’t turn this journey around by falling victim to real property scams. Know how to recognize the signs, and when you identify them, turn your back and walk away. You can also choose to report the fraud or let someone in the government know about it. That way, other potential buyers can be warned, and the scammers are apprehended accordingly.
