Avoiding real estate scams and how to protect yourself is essential in today’s market. Cyber criminals often target the unsuspecting participants of real estate transactions to steal funds being transferred to title companies before closing. They hack emails impersonate REALTORS® and title companies to trick targets into sending money to fraudulent bank accounts that they control. In 2023, cyber criminals stole over $2.9 billion in funds through business email compromise (BEC). Real estate scams can happen to anyone, and being informed is your best defense. Here are some essential tips to keep you safe.
Avoid Real Estate Scams by Researching the Market
Before making any decisions, research the local real estate market. Understand average prices and trends in your area. This knowledge helps you spot red flags when you’re looking at properties.
Be Wary of Unrealistic Deals to Protect Yourself
If a deal sounds too good to be true, it probably is. Scammers often lure buyers with prices that seem impossible. Compare similar properties to see if the deal aligns with market rates.
Get Everything in Writing
Never rely on verbal agreements. Ensure all terms are documented. This includes prices, deadlines, and any contingencies. Written agreements protect both buyers and sellers.
The Protection of Using a Trusted Realtor
Using a trusted REALTOR® is one of the best ways to avoid scams. A reputable REALTOR® has the experience and knowledge needed to navigate the market. They can help you identify potential red flags and guide you through the buying or selling process. Always check their reviews and credentials before enlisting the services of an agency.
To learn more about Taylor Real Estate Specialists and how we can assist you with your real estate needs feel free to contact us for more information.
Avoid Real Estate Scams by Contacting the Title Company Directly
Wire fraud is real! Before wiring any money, always contact the title company directly! This step is crucial to prevent wire fraud. Scammers may try to impersonate the title company or the REALTOR® and provide fake wiring instructions. By verifying the information yourself, you can avoid falling victim to this common scam.
Educate Yourself to Protect Yourself
Stay informed about common real estate scams. Knowing what to look for can prevent you from becoming a victim. Resources are available online to help you learn more.
To learn more about several other types of real estate fraud tactics read 5 Real Estate Scams You Need To Know About.
If you fear that you have fallen victim to wire fraud—You must act quickly! Call your bank and have them recall the wire transfer immediately. Then, report the crime to the FBI’s Internet Crime Complaint Center at IC3.gov. You should also call your regional FBI office and your local police department, as they may be able to help as well.
Conclusion
Avoiding real estate scams requires vigilance and knowledge. By researching, verifying identities, and trusting your instincts, you can protect yourself. Remember, if you have reservations, call your agent or the title company directly with the contact information they initially provided to you. Stay safe and informed in your real estate journey!
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