Buying or Renting a Home? Key Strategies to Avoid Scams in Real Estate
Proliferation of Real Estate Scams
Scammers often target house hunters, perceiving them to be easy targets due to their eagerness for deals. In 2022, more than 40 million homebuyers and renters were cost-burdened in the U.S., spending at least 30% of their income on housing, according to a CBS News analysis of U.S. Census Bureau data.
From 2018 to 2023, nearly 70,000 instances of real estate and home rental-related cybercrimes were reported to the FBI, leading to roughly $1.4 billion in losses for consumers, according to CBS News.
Types of Scams to Watch Out For
- Fake government programs: Scammers masquerade as representatives of low-income housing programs, posting fraudulent applications that collect personal data for criminal use.
- Seller impersonation fraud: Criminals list homes at unrealistically low prices, often using doctored images, to defraud unsuspecting buyers.
Protecting Yourself from Scams
Here are five essential rules to follow to avoid falling victim:
- Research local home prices: Scrutinize listings and beware of deals that seem too good to be true.
- Verify seller documentation: Request official documents and cross-check seller information on official websites.
- Avoid urgency: Be cautious of sellers pressing for upfront payments before signing agreements.
- Tour properties in person: Always visit a property to confirm its existence and state.
- Verify authenticity: Ensure any websites or advertisements are legitimate before sharing personal information.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.