Tips to spot a Real Estate Scam
Searching for your place to call home can be a daunting and exhausting process. As a result you may be tempted to buy the first appealing home or piece of land you see. The perfect location where you can see your dreams coming to life and if it’s an established home the right number of bedrooms and endless outdoor space can have you in awe. However, neglecting to do all the appropriate research could see you pay in the long run and leave you worrying about whether the home even exists. Unfortunately here in Australia online housing and land listings are a popular target for scammers. By knowing and understanding these tips it will help you avoid getting caught out in a real estate scam.
Tip 1 – Too good to be true?
Usually when something seems too good to be true it often is – same goes in the real estate industry. Finding that perfect house or land that you have been searching for is undoubtedly exciting, and it’s even more exciting when you see the price and it’s considerably less than you were expecting to pay. Other hints include utilities being included as this is a very rare occurrence and a lack of request for a rental bond or payment for rent in advance. Researching the location and understanding the housing prices for the area will help you know what to expect. If it’s land or house and land packages you are wanting to buy make sure you are asking the right questions when it comes to the land and its surrounding environment. If the listing price is lower than indicated in your research make sure you ask straight away why this is the case, and ensure you keep a record of all your communications.
Tip 2 – Payment
Scammers have become skilled at sending emails that appear as though they are from real estate agencies. Within these emails they detail the process of making a purchase and instructing you to make wire payment. When you are being asked to pay with cash, a wire transfer or money order alarm bells should be going off. The biggest reason is because once it’s gone there’s no way to get it back, hence why it is a scammer’s payment option of choice. When making a payment, whether this be a down payment or a rental payment, the best way is through an electronic deposit via your bank account. Not only is this an easy process but you have a record of where you money is going in case you ever need to refer back.
Tip 3 – Too personal, too soon?
Naturally when looking and enquiring in the real estate market you are going to need to provide personal details. If this is taking place before you have had the opportunity to view the property or land, there may be something else going on. Scammers don’t actually have a property for sale so asking for your personal information including bank account details or date of birth is how they manage to get your money. It is crucial that you see before you buy. For whatever reason you aren’t able to make the viewing, see if you can have a friend or family member attend on your behalf. You don’t want to be leaving something this important to chance. Another consideration to take into account, is if they say a viewing is not possible as this is an immediate red flag and a common trick scammers use.
Scammers will always find new ways to deceive people looking to buy or rent. Knowing these tips and what to look out for will hopefully prevent you from being in a situation that could leave you extremely out of pocket. Researching and understanding the area and pricing for that area as well as making sure you are having an inspection of the listed property before handing over any money or personal details will certainly help protect you from potential scammers. This reiterates the importance of finding a trusting brand that looks after you and makes the entire process from purchase to build to completion smooth sailing. With us, you’ll be empowered by an award-winning team of 30+ who have built thousands of custom homes for South Australian families and investors.
