There are many ways that scammers can strike these days. Every week, there seems to be a new scam or hack or phishing scheme that you need to be aware of, so it is no surprise that the housing market is full of them, too. Schemes and scams on the housing market can be exceptionally stressful, especially because homes and their sales involve large amounts of money and can cause major heartache.
To ensure that you have the best experience selling your home and can protect your assets, here are four common scams:
1. House Baiters
One of the most frustrating scams on the housing market, house baiters make an offer that is too good to be true…because it is. This scam involves individuals making an incredible offer on your property and stringing out the sale’s closing for an extended period. They will hit you with roadblocks after delay after issue in the closing process to make you hurry and then immediately hit you with an offer well below the asking price and threaten to back out of the deal if you don’t take it.
These scammers thrive on home sellers looking to sell their homes quickly. Once you take your home off the market to complete the sale, you may be desperate to get it done and accept their lower offer. The best way to protect yourself from these scammers is to stay wary of offers significantly above the asking price. While some may be legit buyers eager to secure your property, if the buyer starts to drag their feet and the sale becomes drawn out, it may be time to look for a new buyer.
2. Home Title Fraud
Perhaps the most dangerous and damaging scam on the housing market, home title fraud, can be challenging to spot. This scam often goes hand-in-hand with identity theft. When your identity is stolen, documents can be created that make it seem like someone else owns your property. This scam can lie dormant for years, as you may only know that it has happened once you go to sell your home.
When you sell your home, you may not realize you have been a victim of home title fraud until your lender starts legal proceedings to change the title and receive payment. To protect your home and your legal claim to its title, you can purchase title insurance to help protect against the legal costs of reclaiming your title.
3. Fake House Buying Companies
When it comes to advertisements for companies that buy houses in Baltimore, it can take time to figure out who you can trust. Scammy house-buying companies string you along and lengthen your home-selling process to waste your time. If you are approached with an offer from one of these companies, here are a few things to look out for:
- Do they have valid experience? A possible home buyer looking to make an offer on your property should have experience. If you need clarification on what their qualifications are or what their background is, ask them about it. A reputable home buyer should be willing to give you the information you need to feel confident.
- Can you look them up? A company that doesn’t have a website you can find or any sort of contact information may not be legit.
- Do they have good reviews? If you don’t see positive feedback on Google, the Better Business Bureau, or their website. Even worse, if you see no reviews, feedback, or testimonials anywhere, they may not be a valid home buyer.
4. Scam Cash Buyers
Like fake house-buying companies and house baiters, these scams drag out home sales and offer a lowball price. Often, they are unwilling to show proof of funds when asked and don’t have the proper buyer licensing and registration.
If you want to sell to cash home buyers in Baltimore, do your research. Find a well-reviewed, well-established buyer with plenty of experience. Cash-for-houses companies are often safer bets than individuals looking to buy in cash, as they are more reliable.
Stay Safe and Protect Your Investment
Selling your home can be daunting and made even more scary by the threat of scammers. Thankfully, those who look to take advantage of vulnerable sellers are being exposed more often, and their tactics are becoming better known. This helps you know what to look for and protect yourself and your money. It is important to always be cautious and vigilant when selling your home and constantly review potential buyers. Staying informed means keeping safe.