Tag: red flag

Don’t Be Scammed!!

Are you aware of the latest real estate scams? Protect yourself and your investment by staying informed. Knowing how to spot scams before they happen can save you time, money, and stress. Learn what it takes to stay safe in real estate. Don’t let scammers take advantage of you – arm yourself with knowledge and stay one step ahead of the game. What are the latest real estate scams and how can you best protect yourself?

Types of Scams

Foreclosure Scams: Scammers target homeowners facing foreclosure, promising to help stop the foreclosure process for a fee or by having the homeowner sign over the deed to their property. The scammer takes the money and does nothing to help the homeowner, leaving them in a worse position.

Rental Scams: Scammers advertise rental properties that don’t exist or are not available. They may ask for a deposit or rent payment upfront, and then disappear with the money.

Investment Scams: Scammers may offer investment opportunities that promise high returns with little to no risk. In reality, these investments are often fake or illegal, and the investor stands to lose all of their money.

Title Fraud: Scammers may use stolen identities to transfer ownership of a property to themselves and then take out a mortgage or sell the property for a profit, leaving the rightful owner with nothing.

Short Sale Scams: Scammers may convince homeowners to sell their property for less than it’s worth, promising to help them avoid foreclosure. In reality, the scammer may pocket the difference between the sale price and the actual value of the property.

Protect Yourself

Research: Do a deep dive into the property and the seller before making any payments or signing any documents. Look up the seller’s name, the property’s history, and any outstanding liens or mortgages.

Verify: Always verify the identity of the person you’re dealing with. Scammers often use fake names and identities to hide their true intentions.

Get it in writing: Make sure all agreements, contracts, and promises are in writing. Verbal agreements are not legally binding and can be difficult to prove in court.

Don’t rush: Take your time and don’t rush into any decisions. Scammers often try to pressure their victims into making quick decisions before they have a chance to think things over.

Seek professional help: Get help from a real estate attorney or a licensed real estate agent. They can help you navigate the buying or selling process and spot any red flags or warning signs.

The Bottom Line: Using a realtor can be an effective way to avoid being scammed. Realtors are trained to spot potential scams and red flags. They have access to a wealth of information and resources that can help protect you and your investment. They will help you avoid the most common scams, such as rental and investment, as well as title fraud. In

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House Issues that are Hidden

Looking at older homes to buy? There could be many issues that the seller is not aware of and some that the owner hides. While legal action can be taken after the fact, it’s inconvenient and can be expensive. A few examples of what you should look for that are easily concealed are:

Pests: They can end up causing thousands of dollars worth of damage. Pests are experts in hiding and often are infested in parts of the home that are out of the way or not in view like attics and crawl spaces. Although spotting pests–from wildlife and bats to termites, rodents, and other creepy crawlies–may be difficult, warning signs are often in plain sight. They often leave signs like small holes in the drywall, dry mud tubes along the foundation, small piles of shredded paper, sagging floors, peeling paint, or even floorboards that sound hollow. Look for droppings, odd smells, pest control products, and holes. Damaged plants outside can also signify pest breeding.

A qualified home inspector is your best option for finding any potential hidden problems with pests. Infestations never go away on their own and will decrease the home’s overall value.

Mold and Mildew:  A huge challenge that brings health risks, potential damage to the home, and a huge question like, “Do I walk away from a house with mold?” Easy to hide with bleach spray or paint and one of the biggest warning signs of dampness issues. In many states, it is a requirement for sellers to disclose any known defects of the home to the buyers in paperwork. Including the history of mold and whether or not it has been professionally handled. Another good reason to have an experienced Realtor as he/she will be able to guide you around your state’s requirements as well as the ability to recognize potential mold/mildew problems.

Aluminum Wiring: A lot of this wiring is hidden behind walls and insulation. Many sellers are not even aware of what electrical hardware is installed in their homes. Common in homes built between 1965 and 1973, aluminum wiring is more likely to cause a fire than copper wiring. If the seller doesn’t know, it won’t be listed on the disclosures. This is when a home inspection is most important. But, if you are not even at the home inspection point, you can safely look at the electrical panel and see the cables that run into the attic and basement have an AL, ALUM, or ALUMINUM on the cable jacket.

When an inspector finds this type of wiring, they are duty-bound to report it and recommend further evaluation by a qualified electrician. Sometimes, this can lead to significant decisions, like removing the aluminum wiring or employing approved repair methods.

Leaks: Sellers can temporarily plug the leak to show the home. When you are looking at the home, be on the lookout for significant cracks in the foundation, moldy odors, or any water damage on the ceilings, walls, or windows that may have fresh paint hiding the flaw. Lift rugs and move potted plants to see if they are covering water issues. Can you spot new tiling randomly placed in the bathroom and kitchen? Open the windows and the doors and see if there are any separations or soft spots that may indicate window leaks. A small separation could lead to humidity in your house, which may lead to mold. 

Some realtors advise buyers to use a general contractor to check the home as they are quick to see things that will cause problems. The seller must disclose any water damage and it can be scary to rely on them to give you the full and accurate information to decide to buy their home and how much to pay for it.

Foundation Problems: It’s a big scary red flag as a buyer to have to deal with foundation issues. Just hearing the words turns people away. While walking through the home try to notice any window or door frame gaps or cracks in the wall that might be from a faulty or unstable foundation. Sellers will try to hide the cracks or separation with more caulking and paint. Look to see if the paint is a bit uneven around windows and doors. Foundation issues can cause doors and cabinets to not shut properly and can cause beams to stress and break – don’t be afraid to open and close cabinets.

The Bottom Line:  One of the worst feelings as a new homeowner is the fear that you’ve bought a home with problems that were not disclosed. Even if you, a general contractor or an inspector have found these and other problems but still want the home, a great realtor will do some good negotiating for you to have the sellers pay for the repairs.

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