Real estate scam artists are everywhere and buyers need to be on the lookout for these five scam tactics.
According to Fox News, many buyers fall prey to these scams because they lack the knowledge on how to spot one. Here are the five most common real estate scams:
Fixer-Upper scam. Sellers agree to give a big discount from the asking price provided the buyer signs an agreement to buy on the spot without calling an inspector to check on the property's structural integrity. Getting sucked into this kind of deal can mean expensive repairs and major problems with the house later on.
The Foreclosure scam. Scammers who take advantage of homeowners facing foreclosure are the worst kind. They will offer to help get loan modifications and advice on how to keep the homes but in return owners have to pay them. They then disappear without a trace, leaving distraught owners in a worse state than before.
The Landlord is "away" scam. Buyers and renters are always using online ads to look for the perfect house to live in and scammers will use that to their advantage. They will pretend to be a vacationing landlord who can't give a tour of the property and so they will ask for a reservation fee or deposit. Once the victim falls for the trick, he or she will realize too late that there is no house for sale at all.
The Bait and Switch scam. Lenders give buyers rock-bottom prices and ask for an upfront fee. At the last moment, they will hit buyers with a sudden price increase and having paid fees, they will just agree to take the new deal even if it's way higher than what they can afford to pay.
The Foreclosure Scam 2. Owners do not tell renters that the property they are leasing out are going to be foreclosed. The sheriff comes knocking with a foreclosure order and the renter ends up evicted.
