The real estate market is booming these days, and with that comes a higher risk for scammers looking to take advantage of unsuspecting buyers and sellers. Here are the five most common scams to watch out for in real estate.
1. The Bait and Switch
This is when a scammer advertises a property for sale at an irresistible price only to switch the property for a less desirable one once you’ve expressed interest. For example, a scammer may advertise a property for rent at an unbeatable price and then claim that it has already been rented when potential tenants try to view it.
In other cases, a scammer may advertise a property for sale and then pressure the buyers into paying an inflated price. If you’re looking to rent or buy a property, be sure to work with a reputable agent who can help you avoid falling victim to a scam.
Ace Mortgage, a mortgage Coral Springs and home financing Pompano company, can help you avoid this scam.
2. The Lease Back Scam
With this scam, a seller will advertise their property for sale but with the condition that the buyer must agree to lease it back to the seller for a higher price. This can be a great way for scammers to make some quick money as they sell the property to themselves for a higher price.
To avoid this scam, have a lawyer look over any lease agreement before you sign it. Also, be wary of any seller pressuring you to sign an agreement quickly without giving you time to review it. Mortgage companies in Boca Raton recommend that you use their services.
3. The False Pre-approval
With this scam, a buyer will apply for a mortgage with a lender in on the scam. The lender will then falsely “pre-approve” the buyer for a loan much higher than what they qualify for. This gives the buyer the false sense of security that they can afford a more expensive property when they cannot.
To avoid this scam, only work with a reputable lender you trust. Also, get pre-approved for a loan before you start looking at properties. This way, you’ll know exactly how much you can afford. At Ace Mortgage, we offer home financing Pompano services.
4. The Fake Listings Scam
This is when a scammer will create a fake listing for a property that doesn’t exist. They may even go so far as to stage the property with furniture and other belongings to make it look like a real listing. Then, when interested buyers try to view the property, the scammer will ask for a hefty fee.
Mortgage Coral Springs and Mortgage companies Boca Raton have seen this scam happen many times. If you’re looking at properties online, do your research to make sure the listing is legitimate. Also, be wary of any listings that seem too good to be true or have very few photos.
5. The Mortgage Rescue Scam
This is a scam that targets people who are struggling to make their mortgage payments. A scammer will offer to help the person refinance their mortgage or otherwise get out of their current financial situation. However, the scammer will ask for a large up-front fee for their “services.” In reality, the scammer does nothing to help the person, ending up even further in debt.
These are just a few of the most common real estate scams. If you’re interested in buying or selling property, be sure to work with a reputable agent or broker who can help you avoid falling victim to a scam. Also, always do your research, and never sign anything without fully understanding it.
At Ace Mortgage, we are a home-financing Pompano company that can help you with your mortgage needs. We also offer Mortgage companies Boca Raton and Mortgage Coral Springs services. Contact us today to learn more about how we can help you!