Real estate is one business where people can get scammed easily. There is a lot of competition in selling and buying real estate properties and the competition makes way for a lot of scams in this industry.
People are tempted to act quickly at certain real estate offers as there is always the scarcity or missing out factor. That is where people with ill intentions might benefit from you. Below are a few warning signs that you must know before getting into real estate transactions.
Check the Documents
No matter what real estate deals you are into, first, check all the documents. If the person bringing you the deal has no documents then try to avoid the deal. No documentation properties can bring you a lot of trouble.
Don’t act toward pressure
Don’t fall for the common real estate scarcity techniques or pressure tactics used by the agent or seller. Too much pressure to release funds or sign papers must be looked upon very cautiously.
Don’t’ fall for guarantees
No matter what guarantee the seller, buyer, or real estate agent makes, only the stuff that you have mentioned in the document is valid. So when people make unrealistic guarantees which are too good to be true, make them sign the documents before paying them.
Don’t Wire Transfer
Don’t send money before you have some proper documentation. Even worse is some people make wire transfer payments as advance even without visiting the place or agent in person.
Foreclosure Relief Guarantees
Don’t trust someone who tries to provide you relief from having your homes foreclosed on. Usually, they ask for small payments upfront to help you stop the foreclosure. Such people tend to run away the moment you offer them the upfront payment.
Commercial Property Scam
There is a new type of scam that is being reported nowadays. Brokers promise you shops/offices in extremely popular locations which won’t be available to the general public easily. They create the scarcity effect and make you trust that you won’t be able to get to the shop if you don’t make the payment immediately.
Inspect Your Home With Proper Provider
There are companies with no proper registrations inspecting homes and hiding so many issues with them. They don’t provide proper reports which can be costly if you are buying a home purely based on those reports. So be sure to go with authorized or certified home inspection companies so that you don’t have to worry about the reports.
Visit The Rental Location First
If you are looking to rent a home, first visit the location yourself. Don’t fall for online ads which promise the moon but in reality, there won’t be any home at the specified address. You must be very careful when making the advance payment.
These are the important points you must consider before entering into any real estate transactions. Scams are countless in this field, make sure you don’t get cheated by seamsters.