10 ways to protect yourself from real estate scam

Protect yourself against real-estate fraud

We meet many ‘seasoned’ real estate investors who claim to know everything and want us to accept their advice’s for good. They keep talking about the profits that one can earn by investing in properties business. If not as an investment, they lure us into owning our own home.

These all are fascinating but the way to achieve them is not a cake walk. There are many things that we need to consider and not everyone is acquainted with the depth of real estate terms. Hence, these so called seasoned real estate investors do everything for making us their real estate scam victim.

I will not disagree with the fact that not every agent in the real estate business have cruel intentions, but there is no harm in staying one hand ahead of these agents. There is nothing that one cannot do, only the determination matters. And, when it comes to protecting our assets, how can we chose to be slothful. After all, the money is ours and we work hard for it.

Through this piece of suggestion, I would like to give you guys few tips that would always keep you well prepared for any situation that may arise. The potential scams are numerous but all these can be curbed if we stay alert and follow few important points while making the toughest decision of our life.

1. Seek help form local real estate investment group

These groups are meant to provide assistance for real estate investment decisions. It is always wise to connect with an authorized body for accurate information. This can help you identify the authenticity of your real estate agent and will save you from getting into real estate scams.

Usually, the agents who are looking to harm you will never present the right picture of the property or the related investments. They would try to exaggerate things in a way that it would look attracting. Always remember, if something seems too good to be true, raise your alarm.

Cross check all the information provided with the people of the local groups and find answer to all your doubts.

2. ID and other necessary documents are a must

Before I suggest you to do this, always remember, you cannot just depend on ids of real estate agents. Anyone can get that online. However, this is the basic step that will alert the agent about your attentiveness.

These con artists try to scam people who seem too easy to convince. Even if you are, do not let them see through you. Be the one controlling the conversations. Let them know that you have eyes on your back and nothing will go overlooked.

3. Use your agent’s escrow account for depositing money

Do you like dealing in cash? It is a big no when you are making any kind of payment for your real estate investment. Even if you use wire transaction, it is always better to use the escrow account of your agent to transfer money.

Let someone else be the witness of your payments and you would every time know that the money is not going anywhere.

4. Make sure to consult your attorney in every deal

When taking big decisions, accompany your attorney with you. Let him know about all the deals as he will be in a better place to judge what is legal and what is fishy about your agent.

The presence of an attorney at the time of discussion, will form pressure on your real estate agent to stick to the laws and give you the right suggestions.

5. Do your research

Are you totally dependent on your agent to present you the comparable sales report? Don’t feel helpless and use your sources to get your comparisons done. You cannot deny the fact that these reports can be manipulated to give the wrong impression. Hence, take a step ahead and find what is real.

Do not stuck into any kind of illusion. It is better to know the worth of the property you are going to sell or buy.

6. Do not shy to ask for more

At any point of time you feel the clauses in the contract are not going your way, ask for it. Demand changes. You are spending and you need to have the right to say it upfront. Either the other party like it or not, there should be a common platform for agreement before you go ahead and get into any kind of deal with your real estate agent.

7. Document every necessary decision

Make sure you have documented every promises your agent has made to you. The words are not counted until it is not given in writing. Don’t let him run away with false promises.

If he is genuine, he won’t delay in doing as you say. If he tries to ignore, think again before dealing with him.

8. Keep track of all email and SMS trails

Never delete any communication that is done through email or SMS. That will help you prove yourself when the situation comes. It is always better to avoid any conflicting situation. However, you are not an expert on human instincts. So, be prepared and let the evidence talk itself.

9. Search on real estate forum

This is the easiest way to smell if something is already cooking. The blogs and forum will warn you of the person you are dealing with, if he was involved in illegal activities before. Realtor Scam is one of the sites that contains information on scams related to real estate.

10. Mention contingencies in your contract

Last but not the least. Do you think you need to have a backup plan? If not, think again. What is the purpose of finding that your agent is a fraud, if you cannot go back and reverse the whole situation.

 

Hence, keep these 10 contingencies plans ready to bind your real estate agent and to give you the flexibility to cancel the deal within a given period of time.

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