As a seasoned Forever Realtor with a passion for helping people find their dream homes, my top
priority is to ensure that my clients have a safe and secure real estate experience.


Unfortunately, the real estate industry, like any other, is not immune to scams and fraudulent
practices. Scammers continuously devise new techniques to exploit unsuspecting homebuyers
and sellers. In this essay, I will shed light on common real estate scams and provide essential
advice on how to identify and avoid falling victim to these deceitful schemes.


Understanding Real Estate Scams

Real estate scams are cunning tactics used by individuals seeking to defraud buyers, sellers, and
even real estate professionals. These scams often prey on emotions, urgency, and a lack of
knowledge. Recognizing the warning signs and learning about common techniques used by
scammers can empower you to make informed decisions and safeguard your interests.


Rental Scams: In these schemes, scammers pose as landlords or property managers, offering
attractive rental properties at unbelievably low prices to lure potential tenants. They may ask for
upfront payment or a security deposit before the victim has seen the property or signed a
legitimate lease agreement.

Foreclosure Scams: Scammers target vulnerable homeowners facing foreclosure, offering
assistance in saving their homes for a fee. However, they often fail to deliver on their promises or
may even trick homeowners into signing away their properties.

Wire Fraud: During the closing process, scammers may intercept communication between
buyers, sellers, and title companies, sending fraudulent wiring instructions for funds transfer. As
a result, unsuspecting victims wire their money to the scammer's account instead of the
legitimate one.

Title Fraud: Scammers forge documents to transfer property titles into their names, making it
appear as if they are the legitimate owners. They may then attempt to sell or mortgage the
property for financial gain.

Investment Scams: Unscrupulous individuals may promote investment opportunities in real
estate projects that promise high returns. However, these projects may be nonexistent, or the
scammers may use the money for personal gain without delivering on their commitments.


Identifying Real Estate Scams


To protect yourself from real estate scams, it is essential to be vigilant and recognize the red
flags. Here are some key signs that may indicate a potential scam:

Too Good to Be True: Beware of offers that seem too good to be true. Prices significantly below
market value or promises of high returns on investments should raise suspicion.

Pressure and Urgency: Scammers often create a sense of urgency, pressuring victims to act
quickly without giving them enough time to verify the legitimacy of the transaction.

Request for Upfront Payments: Be cautious when asked to make upfront payments or wire
money before completing necessary due diligence.

Lack of Documentation: A legitimate real estate transaction involves extensive documentation,
including contracts, titles, and disclosures. If these documents are missing or incomplete, it may
be a sign of a scam.

Unprofessional Communication: Poor grammar, misspellings, and unprofessional emails or
phone calls may indicate fraudulent activity.


Protecting Yourself from Real Estate Scams


Knowledge and awareness are your best weapons against real estate scams. Here are some
strategies to help you stay safe:

Work with Reputable Professionals: Partner with reputable real estate agents, brokers, and
attorneys who have a track record of successful transactions and positive reviews from previous
clients.

Research the Property and Seller: Conduct thorough research on the property and seller. Verify
ownership and property details through public records and official sources.

Visit the Property in Person: Avoid renting or purchasing a property without visiting it in person. If
that's not possible, request a virtual tour or video call with the landlord or agent.

Verify Wire Instructions: Before wiring any funds, confirm the instructions with the recipient over
the phone or in person. Be cautious of last-minute changes in wiring instructions and always use
secure communication channels.

Never Share Sensitive Information: Avoid sharing personal and financial information with
unknown parties or on unsecured websites.

Trust Your Instincts: If something feels off or too good to be true, trust your instincts and
conduct further investigations.

Conclusion

Real estate scams can have devastating financial and emotional consequences. However, by
arming yourself with knowledge, staying vigilant, and following best practices, you can reduce
the risk of falling victim to these deceitful schemes. Remember to work with reputable
professionals, research properties and sellers, and be cautious of upfront payments and wire
transfers.

As a Forever Realtor, my commitment to my clients extends beyond just finding the perfect
property. I prioritize your safety and security throughout the real estate journey. By staying
informed and cautious, you can navigate the real estate market confidently and achieve your
homeownership dreams without falling prey to scams.


Juan Mestre, Realtor Associate RSPS, AHWD, C2EX, & SFR®

RAISING THE BAR FOR REAL ESTATE SERVICES

CONSIDER: Before making any decisions, you should speak with an attorney, a financial advisor, your
CPA, and any other qualified professionals for your situation, as I am not a lawyer but your neighbor's
Realtor Associate. Let’s start working together towards your Real estate dreams. Reach me at
305-776-5677 or register at www.juanmestre.com or email mestre.j@ewm.com.
Sourced and digested from several locations including but not limited to:
RisMedia for BHHS.com/blog, EWM Realty, Data from NAR & my knowledge