Every day, it seems, a new fraud emerges that needs to be avoided. To keep law-abiding residents informed and a step or two ahead of con artists, federal and state governments make an effort to keep up with warnings placed on multiple websites. In the real estate industry, fraud attempts like these are not unheard of. Additionally, because the real estate industry is so lucrative, burglars are much more inclined to target it if they can.
There Are Several Major Strategies Of Real Estate Scammers To Be Aware Of In Arkansas
Discover the strategies and ploys used by these scam artists so you won’t be taken in by their schemes to steal your hard-earned money. We want to warn you about a few potential scams when selling your house in Northwest Arkansas and provide you some tips on what to be wary of when selling your Northwest Arkansas property in order to avoid any losses for both buyers and sellers.
Down Payment Fraud
Online security is something that the banking and other financial industries have kept up with better than the real estate industry. Some real estate brokers use free email services like Gmail or Yahoo to communicate with their clients. Scammers can impersonate real estate agents’ personal Gmail accounts by creating similar-sounding email addresses using Yahoo or Gmail and then requesting personal information or, worse still, down payments. Due to the public nature of your listing and your realtor, scammers may use this information to their advantage.
This is one possible scam. A real estate agent by the name of Lance Barker is publicly listing your property in Northwest Arkansas with a company we’ll call Ace Realty. The criminal keeps an eye on the property when it becomes contingent, indicating that a deal is about to be made. By generating a phony email address and utilizing Lance Barker’s name, they can then impersonate the realtor’s email address. The “from” line will actually read Lance Barker when you receive the email. The thief may next request your bank account information on the pretense that they need it so they can transfer some earnest money or down payment funds from the buyers. Unknowingly, you might provide a thief with important information.
Make sure you are aware of your agent’s email address and look into any emails asking for personal financial details that have a dubious tone. Verify once more that the name and the email correspond to every previous email you have received from the agent. Don’t simply hit respond and inquire as to his identity because that email will be forwarded to the criminal.
Agents typically do not formally request this information, though. Additionally, make sure you are informed on the closing or settlement step of the real estate deal. Your agent or attorney should be able to provide you with information about this. Ask them about anything that seems strange or different from how they explained the procedure. In the event that you mistakenly provide financial information, getting your money back can be difficult. Always bring a certified check to closing that you can physically present to the title firm because they have safeguards in place to stop scams.
Baiting Sellers
Northwest Arkansas property owners should be skeptical of bids that seem excessively exorbitant. If you get a fantastic offer for your property in Northwest Arkansas that is higher than what you are asking, speak with your agent or lawyer. There is a fraud where fictitious buyers offer owners ridiculous sums of money to convince them to remove their properties from the market and sell them. After some time, the buyer begins to make lowball bids since they are having problems obtaining finance. Because they have wasted time and don’t want to start over with additional showings, etc., the disgruntled seller accepts the considerably lower offer. This was the initial plan of the con man.
Make sure to examine any potential buyers in-depth. Real estate agents can help you with this. Something might be genuine if it looks too good to be true. Ask the buyers things such, “What do you do for work,” or look them up on a website like LinkedIn to determine whether they are actively employed. A little social media detective work can often avoid issues.
Title Fraud
In the Northwest Arkansas region, homeowners may fall prey to this crime. Scammers use a range of nefarious methods to steal your personal information. If provided the right details, they can create a fraudulent title to your home. They can get a loan based on the worth of your house with the aid of this title and other stolen personal information. When you go to sell your house, you startlingly discover that it has been refinanced. Older borrowers are be easy targets for this fraud since they might not know how to look up their title information online when something seems strange.. You can find help for title fraud in Arkansas here.
We advise you to purchase title insurance from a reputable Northwest Arkansas title business. This kind of insurance is offered by respectable title firms in Northwest Arkansas . You can use this title insurance calculator to find cost for title insurance in Arkansas. Although it usually comes up in the original closing for your home, it is a good idea to double check that you have it. Of course, you should always exercise caution while securing sensitive data that could be misused to steal your identity.
Research Can Help You Avoid Other Real Estate Scams
These are just a few of the frauds that house buyers and sellers in Northwest Arkansas could run into problems with.. You can read about some other real estate scams at Bankrate.com. Always perform due diligence and look into the reputations of all parties involved in a real estate deal, is what we urge you to do. Check the reputation of anyone you intend to use, including movers, lawyers, and real estate brokers. Check out reviews on Google and Yelp as well as the Northwest Arkansas BBB.
Stressful Needs For A Quick Home Sale Can Lead To Falling For A Scam. Let Us Help.
While we are unable to cover every possible scam, we can advise you to be watchful and ask for help if you have any concerns. These scams often can happen to those who are stressed and need to sell because of a pending foreclosure or illness in the family. We at Little Rock Property Buyers pledge to be open and truthful with our clients. Give us a call if you own a property and are looking for a fast cash offer that doesn’t involve any inspections, repairs, or remodeling. In Northwest Arkansas , we may purchase homes quickly and with cash.
At Little Rock Property Buyers, we have a great local reputation for integrity and professionalism. You can see our Google reviews here. Perhaps your home needs major repairs but is still occupied and you’re contemplating your options. Read about how we can help you if you have a home that needs major repairs. Whatever your home selling needs, we would be happy to talk to you more, offer advice, or give a free, no-obligation cash offer. We do not charge commissions or closing costs and there are no other hidden fees. Call us today at 501-580-3035 and speak with one of our knowledgeable and helpful professionals.
