Red Flags: Learn How To Avoid Real Estate Scams

One of the most effective ways to avoid real estate scams is to learn how to recognize the red flags. Remember, if something seems too good to be true, it usually is. And always trust your instincts. If there’s some niggly thing that just doesn’t feel right, trust this and get a second opinion from someone you trust, such as a recognized professional real estate agent. Let’s dive in and learn how to spot the red flags.

RED FLAG: Unexpected Contact, Phishing, & Lack of Credentials

If you get an unexpected email or phone call about a too-good-to-be-true real estate offer, it’s natural to be suspicious. Afterall, you weren’t in the market for a home so why is this person reaching out to you? Scammers watch for unsuspecting people online plus pay attention to social media conversations to gauge who may be likely to chat with them. If you’re commenting on social media about frustrations with your home or wishing for something different, this can be an unintentional invitation to a scammer combing through Searches to try to lure you into a conversation with made-up promises.

How To Avoid This

• If you get a phone call or email, don’t share any sensitive information.
• In emails, avoid clicking on links and attachments.  
• Keep your computer virus program updated.
• Keep your passwords and login information in a secure location. Get in the habit of using a strong password and changing passwords frequently—every 3-4 months is ideal.
• On social media, change your privacy settings to share only with those you know and have connections with.  
• When in doubt, research the person’s name and their company to confirm if the individual is a genuine agent with a license and proper industry credentials. Look for a legitimate website with real listings. You can also search multiple real estate search engines to see of the property is found across each of these websites. An actual real estate agent won’t hesitate to provide this identifying information.

RED FLAG: Urgency and Pressure Tactics

Scammers will apply pressure and use urgency to get you to move fast, before the home is gone. Scammers will tell you that you don’t need to conduct thorough research on the property or that there isn’t time to think on something or consult with family members before submitting an offer. While offers can come in and be accepted any time, genuine real estate agents won’t place high-pressure or intimidate you to make an offer.

RED FLAG: Request Upfront Payment

Requesting payment upfront via wire transfer or another non-secure payment method is a commonly used scammer tactic. To avoid a wire fraud scheme, verify all transfer instructions through a trusted source before sending any money. A genuine agent will work with you to establish a secure channel of communication.

RED FLAG: Too Good To Be True Offers

As the old saying goes, “If it sounds too good to be true, it usually is.” This is where you need to ask more questions, be cautious, and realize in all likelihood, the scammer is promising more than can be delivered or not disclosing the actual condition of the home.

RED FLAG: Bogus Property Listing / No Property Visit Needed

When you think about it, it makes sense to want visit a property you’re planning to purchase but some do purchase a home, sight unseen. Always make the time to see the home in-person or have a trusted representative view the home on your behalf. Scammers create fake listings to draw in people and then try to collect upfront fees. Also, verify the listing is real. How? Check to see if the exact same listing appears on multiple real estate websites such as Zillow, Redfin, and on their own company website.

RED FLAG: Foreclosure Rescues

If you should find yourself facing a foreclosure, a real estate agent can offer some genuine assistance. A scammer will make inflated promises to save the home, in the exchange for fees or a property transfer. Commonly, these offers come to you unsolicited as signs of help. Avoid and take caution with any offers you haven’t initiated. Instead, consult with a realtor of your choosing, an attorney, or a housing counselor. These professionals can guide you towards trusted resources and options relevant to your specific situation.

RED FLAG: Rental Application Scams

Verify you’re actually conversing with the genuine landlord or property management manager. Make an appointment to tour the home and do a walk-through. If you get excuses such as maintenance, other tenants, etc. ask more questions and avoid exchanging money without a rental agreement or in-person visit.

RED FLAG: Home Inspection Scams

Do your research and vet any home inspection offers you get that are unsolicited. Don’t hesitate to ask for references, follow up with these references, and read the online reviews. Verify the inspector is licensed and certified. Scammers will put the pressure on to move fast. Scammers may also find bogus problems and then suggest you work with their contractors to make the needed repairs.

Since 2004 Sara Lyn Nguyen continues to bring a wealth of knowledge and expertise about buying and selling real estate around the Houston area to those she serves. Sara is a multi-year award winning REALTOR® and relocation specialist where her clients trust her to have up-to-date information on the real estate market. She has been one of Gary Greene’s Multi-Million Dollar Top Producers, and citywide was the #2 Top Producing agent in 2020, #3 in 2021, and #2 in 2022. When it’s time to buy, sell, invest, or relocate speak with a trusted professional knowledgeable in the homes and neighborhoods of Fort Bend/Sugar Land and the surrounding region.