Whether you're selling your Scarborough real estate or buying a new place here in Jackson, there are going to be people out there who want to scam you. It's a fact of life. However, by keeping your wits about you and staying informed about the latest real estate scams, you can protect yourself from getting scammed and keep your money safe. This article will introduce you to some commonly encountered real estate scams and give you advice for avoiding them.
Site Unseen Purchases
When you've been trying to sell your Oshawa homes for a long time, it can be very tempting to leap on any offer that's made. However, if you have a buyer who wants to buy your house site unseen from another part of the country or another part of the world, be suspicious. These scammers will purchase your home by cheque and then change their minds and ask for the money back before the cheque has cleared. Once you hand over the money they disappear and the cheque bounces, leaving you out the cost of their purchase. To avoid this scam, use no-refund clauses and never repay a deposit until it has cleared.
Flopping
With so many foreclosures looming, many a real estate broker has decided to take advantage by rigging short sales. Sellers hire agents to price their homes, only to have the agent lowball the home and sell it to a co-conspirator who will then flip it and sell it at a much higher price, allowing the agent and the conspirator to pocket the difference at the expense of the seller and lender. To avoid this scam, get several opinions on your home's true market value.
Home Refinancing
In an effort to trick homeowners out of their Toronto condos, some scammers are offering great deals on mortgage refinancing. Then, by taking advantage of the homeowner's inability to understand legalese or their limited understanding of English, they will trick the owner into signing the property over to them. At this point the scammer will sell the house out from under the unsuspecting homeowner. To avoid this scam, always seek out your own refinancing plan at a reputable bank and never sign anything your lawyer hasn't seen.
Identity Theft
This type of scam is becoming increasingly common as more info is stored online. Scammers use computers or steal mail that allows them to assume your identity and take out loans from Canadian mortgage companies to buy houses in your name. They can also use your identity to withdraw money from your mortgage or even sell your house without you even realizing it. To avoid this type of scam, protect your personal information. Shred your mail and change your passwords often. Never write them down.
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