4 Common real estate scams and how to avoid them

Make sure you don’t fall victim to a scam while buying, renting, or refinancing a home. We’ve listed four of the most common real estate scams, along with tips on how to avoid them.

Fake listings and rental scams

Target: Unsuspecting renters

Scammer’s tactics: Scammers will list rental properties online with high-quality photos at low rents and ask you for a deposit and the first month’s rent before being able to see the property.

How to avoid: Be wary of landlords or agents who ask for upfront payments before any contracts or paperwork has been produced, or before you’ve even seen the property in person. Be skeptical of listings that seem too good to be true. Rent only from reliable sources and websites.

Escrow wire fraud

Target: Buyers and investors

Scammer’s tactics: Using stolen contact information, scammers will pretend to be your real estate agent and ask you to deposit money into a false bank account. Some of these operations can be very sophisticated and you’ll encounter websites that very accurately mimic the official websites of title or lending companies.

How to avoid: Make sure you always call a number that you’ve verified before you click on email or text links, or send money online. You can never be too careful before you click a transaction.

Predatory lending

Target: Vulnerable borrowers, like elderly homeowners

Scammer’s tactics: Unscrupulous lenders can take advantage of borrowers. This could result in burrowers getting trapped in debt cycles, foreclosures and bankruptcies. Loans with predatory terms often carry very high interest rates, hidden fees, excessive fees, and more.

How to avoid: Any key financial discussion with a lender, especially one related to a mortgage, should be conducted with a trusted family member, friend, or better still, your real estate professional. Be sure to work only with known lenders or banks and request clarification on all fees and penalties.

Bait-and-switch movers

Target: New homeowners

Scammer’s tactics: Predatory moving firms will give you an estimate over the phone, but when it’s time to pay for the service, the bill is suddenly grossly over the estimate. Your belongings could be held for ransom if the company has already started to pack your items. Worse, they may have simply taken your deposit without ever showing up.

How to avoid: Be sure to get the movers’ license number and check for complaints with the Federal Motor Carrier Safety Administration (a division of the U.S. Department of Transportation). Usually, movers ask for a small deposit, but avoid giving large amounts upfront. A reputable company will not require payment in full until the work is done.

Also be sure to accurately describe your moving conditions, if you’ve unintentionally misrepresented the size of the job, it’s natural to expect that your bill will be higher than quoted.

Hire professionals to protect you from scams

As well as assisting you when looking for Winthrop condos for sale, a real estate company with experience like Coldwell Banker Winthrop Realty can protect you from unscrupulous operators. With our help, you’ll be able to close your real estate transaction smoothly and hassle-free in Winthrop, Twisp, Mazama, and other cities in the Methow Valley. Call 509.996.2121 or send an email.