Property scams are a constant feature in the real estate sector and not a few have fallen prey to the antics of unscrupulous elements who masquerade as genuine property owners or agents. Victims of these fraudulent acts have lost huge sums of money in the process.
These victims fall prey to these fraudsters due to many reasons but we are going to look at 5 of those reasons below:
Greed
Most people have innate inclinations to make quick money even when they did not work hard for it. Scammers usually sell properties at ridiculously low prices and this attracts greedy potential buyers who are eager to reap “huge gains” and make “quick money”.
If a deal sounds too good to be true, it probably is and you should steer clear of it. Houses being sold at far below market prices either have defects or are being sold by scammers. You run a very high risk of making a bad buy or losing a lot of money to fraudsters.
Lack of Adequate Information
Some prospective buyers go into property purchase without having the required information about property buying. For example, some land buyers get swindled because they do not even know the required documents for land purchase.
It is advisable to be armed with adequate information about the property you want to buy and the process of buying the property. You are less likely to fall prey to scammers when you are well informed.
Desperation
Property search is a tedious process and after a long and stressful property search, buyers might just jump at any offer that comes their way without conducting proper investigation on the property. These buyers do this because of the fear of losing the property and going over the home search cycle again. Fraudsters are well aware of the difficulty experienced by prospective buyers when searching for houses and they prey on this.
Failure to Take Adequate Precautions
Some buyers fail to take adequate precautions to protect themselves from property scams. When you don’t take certain precautionary measures, you leave yourself prone to scams.
Always deal with registered agents and do not make any payments until you verify the property documents. Do not pay in cash but pay to the bank account of the seller’s agent who must be duly registered.
You should also move round the neighbourhood where the property is located and ask the residents some questions about the property. These measures might seem stressful but they will save you a lot of money along the line.
Going it Alone
A sizeable number of property scam victims are first-time buyers who went into property buying without consulting professionals. When buying property, it is advisable to employ the services of a real estate professional to guide through the entire property buying process.
Real estate professionals have an excellent knowledge of the local market and they know the mode of operation of scammers, so they are best suited to help you avoid scams.
We (BLUEHEDGE REALTORS) are here to help you in this regard.
