Real Estate Scams are on the Rise
Real People. Real Heart. Real Experience.
These are the three phrases that introduce new visitors to our firm. And while we show this realness in everything we do, sometimes things happen that reinforce our values so much that we have to share.
Protecting Owners from Scams
Recently, Jenifer received an email inquiry via Realtor.com from a man stating that he and his wife owned land in Bennington and wanted to sell it. Because he and his wife live out of state, they mostly communicated via email, although he did provide a phone number. Working with clients 100% remotely isn’t unusual since the pandemic. In fact: The New York Times reported back in November 2020 that real estate has gone virtual. That’s certainly been the case here in Vermont, where city dwellers bought properties site unseen to get some outdoor space away from the crowds.
Jenifer knew real estate scams were on the rise, having read about it twice in industry publications, and made sure to ask for identification. She was provided digital copies of their passports, which she cross examined against her own and it looked legit.
Luckily, prior to sending the listing agreement for signature, Jenifer listened to her gut, which kept nagging her with a bad feeling. Using her sleuthing skills and publicly available resources she found a phone number for the wife of the landowner she was supposedly talking to and called her. It turns out the couple had no clue who Jenifer was, and certainly weren’t planning on selling their land.
Had Jenifer not listened to that nagging voice in her head, these owners could have lost their property.
You can read the full story in the Bennington Banner along with a follow-up article featuring the owner of the property.
The National Association of Realtors is aware of this scary new threat to industry professionals and consumers alike. They created this short educational video to explain how the scam works and to arm Realtors with the tools to identify potential scams before falling victim.
Real Estate Scams are on the Rise
The type of scam Jenifer disrupted is called a title or deed scam. Interestingly, this isn’t the only scam Jenifer has squashed recently. She also helped remove a rental scam from Craigslist. Not too long ago a friend of hers called about a home for rent that seemed too good to be true. Jenifer explained why the price might be low but then asked for the address and as soon as she heard it said, “That’s definitely not for rent, it’s Maddie and Joe’s place!” Maddie and Joe being mutual friends of theirs.
With scams on the rise, Jenifer and her team have put together a great list of warning signs.
Never meeting face-to-face. While things are often done over great distances, be mindful of people who only want to email, or communicate only on WhatsApp, which is a double-end encrypted text & voice platform. Phone calls are great, but the best alternative to meeting in person is a live video chat where you can clearly see the people you’re dealing with.
Multiple forms of identification. When Jenifer asked the scammer for photo ID, they sent her passports, which is unusual. Most US citizens will use drivers’ licenses as a form of identification. A US citizen who furnishes a passport is worth further investigation.
Sudden urgency. Moving is stressful and some markets are hot right now, but sudden urgency can be a sign that something is up. This is when a savvy Realtor remembers to slow down and double check everything.
Wire fraud overages. This one is surprisingly common! An interested buyer or renter will send a wire transfer that’s accidentally too high. That’s easy to fix, right? Just wire them back the overage. This is a very common scam because it takes a longer time to discover the initial transaction was fraudulent.
The Hoffman Real Estate Difference
Working with licensed, trained professionals who are a part of your community is one way to avoid becoming the victim of a real estate scam. Hoffman Real Estate prides itself on training agents, staying up-to-date and being part of a network of professionals who support and share with each other. Scammers are going to keep getting more sophisticated and we’re dedicated to staying more than a few steps ahead of them!
