Buying any piece of real estate is a big move and includes a lot of money to being spent. You don’t want to fall for any scams, with how much money is on the line, you can end up with lifelong consequences. To help you avoid falling being taken advantage of we have come up with a list of common real estate scams.
Out of Town Renters Scam
If you are looking for real estate on Craigslist or another online directory and come across a property that you really like, you often start by contacting the seller. A common scam you will encounter is a response to your email stating that the owner of the property is out of town but are excited to rent to you.
The “out of town” owner will then request that you transfer payment to them via Western Union or another service. After payment is received they will say that they will tell you where a key is hidden. In reality, there is no house.
Do not fall for a seller that won’t meet you and/or won’t follow traditional payment methods.
It may feel like forgery should be outdated with the invention of the internet and having resources at our fingertips. However, there are still plenty of people who try to use forged documents. Once you pay and go to the property you find that the person you were dealing with wasn’t the real owner and the paperwork you have is fake.Some states allow you to look up the name of property owners online. You can also check the authenticity of the paperwork with a lawyer or realtor.
The number one place to find real estate in the age of the internet is online. One scam you will see often is misleading pictures of the property or blatant misrepresentation. This is why you should never buy or rent a property without first seeing it in person. You may think that no one would do this but many investors buy properties without seeing them. If you’re going to purchase a home or condo in Destin be sure to use a licensed real estate agent. You should also have an inspector go over the property to make sure everything is in the represented condition.
Bait And Switch Mortgage Rates
When looking to get a mortgage you will look for the best rate possible and you will shop around to find it. Those who find a perfect rate will often go for it without looking into the company first. Often times, when a mortgage rate seems too good to be true it is. Shady mortgage lenders will sell you a low mortgage rate and when it comes time to use the mortgage, they will raise the rate. Avoid mortgage rates that feel too good to be true and do your research for a mortgage company to be safe.
Avoid a Destin Real Estate Scam With Research And a Realtor
In conclusion, there are many different real estate scams out there and you should always keep your eyes open. By reading this article you have already started your research into buying a new home. Continue to do so and you will be safer during the purchasing process. It pays to educate yourself.