I recently wrote about the ongoing land scams involving fraudulent listings that take advantage of vulnerable consumers seeking affordable property. This week, I want to discuss other ways to remain vigilant in real estate transactions.
Sadly, crimes involving real estate have been prevalent for years, and as many real estate searches and transactions have moved online, the chances of being caught up in a cyber scam have become even greater.
As a service to other Realtors and our community, here are a few tips for keeping a watchful eye against different types of real estate fraud.
Use reputable listing platforms
When looking for properties online, use a reputable listing platform like the local multiple listing service. These systems have strict verification processes to ensure listings are legitimate. Avoid using small or obscure websites that might not have the resources to verify listings or detect fraud.
Verify the listing information
Before making any payments, verify the information provided in the listing. For example, check the property’s address and confirm it exists using Google Maps or a similar tool.
Also, verify the property’s ownership by conducting a public records search. If the seller claims to be a real estate agent or broker, verify their license with the state’s regulatory board.
Be wary of upfront payments
Scammers often ask for upfront payments, such as a deposit or processing fee, before allowing potential buyers to view the property. Be wary of such requests and never make any payments without verifying the legitimacy of the listing and the seller.
Check for red flags
Be on the lookout for red flags that might indicate a fraudulent listing. For instance, a seller unwilling to provide additional information about the property or insists on communicating only via email or text could be a red flag.
Also, be wary of sellers who ask for personal information such as your Social Security number or bank account details.
Use a trusted real estate agent
If you’re unsure about a property or seller, consider using a trusted real estate agent to help you navigate the process. Realtors have experience and expertise in identifying red flags and can help you verify the legitimacy of a listing.
Report suspected scams
If you come across a suspicious listing or believe you have been the victim of a land listing scam, report it to the relevant authorities. You can report real estate scams to the FTC (www.ftc.gov) or your state’s attorney general’s office.
Criminals know there are a lot of moving parts when it comes to real estate transactions. That’s why it’s important to trust the expertise of a Realtor when conducting business.
Realtors work with clients every day and help guide them through the homebuying process safely. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serves Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia. The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a Multiple Listing Service that is one of approximately 600 MLSs in the country and services more than 3,000 MLS users. Local association membership consists of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines, including appraisal, commercial, industrial, land, multifamily, property management and residential. Affiliate members who represent related industries work alongside these Realtors, including mortgage lenders, home inspectors, title and closing services, pest inspection and control services and insurance providers.