CRAIGSLIST REAL ESTATE SCAMS PLAGUE HOUSTON MARKET

House and apartment hunters are advised to beware of deals that sound too good to be true
 
HOUSTON — (May 13, 2009) —Real estate scams are on the rise, including a number of recently reported cases of Houston-area properties advertised on Craigslist.  Scams involving Craigslist have been reported elsewhere around the country since the market downturn began more than a year ago, however the Houston Association of REALTORS® (HAR) has just been advised of at least two local cases.

The Craigslist scams involve the posting of properties for rent or sale at discounted prices. The ads usually look legitimate and sometimes feature photos and listings from real estate brokers. The person posting the ad will then ask prospective renters or buyers to mail a check, money order or cash, or wire the funds for the property.

In one case, a consumer informed HAR that she had been scammed out of $1,400 by someone claiming to be the listing agent on a house that he advertised as a lease but that was actually for sale.  She has filed a complaint with the Houston Police Department.  Another consumer completed a lease application for a property listed on Craigslist and was about to mail a check when she had a question and called the phone number on the REALTORS® sign outside the home.  It was then that she learned it was a for-sale property and that the person who advertised it on Craigslist was a fraud.

“The Houston Association of REALTORS® urges consumers to exercise caution when considering real estate listings posted on Craigslist or other general advertising sites,” said HAR Chair Vicki Fullerton.  “More than 23,000 Houston-area real estate professionals who list their properties on our Web site, HAR.com, adhere to a strict code of ethics that does not involve asking consumers to mail or wire money.  A deal that sounds too good to be true probably is,” she added.

Craigslist has published a message on its real estate listings pages alerting consumers about fraud and scams. The site warns about ads requiring consumers to send or wire money. It also strongly encourages consumers to deal with people in person rather than over the phone or via e-mail and mail. Additional tips are posted at http://www.craigslist.org/about/scams.

Founded in 1918, the Houston Association of Realtors® (HAR) is a 23,000-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling. It is the largest individual membership trade association in Houston, as well as the second largest local association/board of Realtors® in the United States.