Spotting a Scam When Purchasing a Home

Spotting a Scam When Purchasing a Home

When you are in the process of buying a home you need to be aware of real estate scams. Although they may sound genuine these scams are designed to take advantage of new homebuyers or those who haven’t done their research.

Keep in mind that if it sounds too good to be true then it probably is. With some preparation and research you can evade scams when buying a home.

Requests to Wire Funds

If it is ever requested that you wire funds to the seller or real estate agent you are working with, you should start looking for another home somewhere else.

Never wire money or give out your financial information to anyone that you do not know. If they are giving you excuses to why they are using this process, it is more than likely a scam.

Claim to be from a Government Housing Program

A lot of scams out there will claim to be from of associated with a government housing agency. They will even have websites that seem legitimate and will ask you to pay a fee for their services.

Government agencies will never ask you to wire them money. If you are not sure if the agency or offer is real call the agency and get their story.

Are They Legitimate?

There have been times when people will pose as a real estate agent or the owner selling homes that do not belong to them. Actually there have been a lot of previous real estate agents still selling homes illegally!

The best way to avoid this is to work with someone who was referred to you by a friend or family member. Either way you should always research the sell or agent before working with them.

Appraisal Seems High

Appraisal fraud is another scam you could come across. The seller will state that the property is worth more than it really is.

You should always check the date on the appraisal and ever get your own appraisal of the home done. Additionally, you should check the value of other homes close by to get an idea of what the home may be worth.