Common Real Estate Scams And How To Avoid Them

On 13 Jul., 2022

Read this guide to learn some of the most common real estate scams and how to avoid them when looking at commercial property for sale in San Diego.

Common Real Estate Scams And How To Avoid Them

When buying a commercial property for sale San Diego, you should be alert to avoid being scammed. There is a lot of pressure you will experience when purchasing a commercial property. In a competitive market, there is always the temptation to rush into making decisions. Unfortunately, scammers will take advantage of this and trick you into paying for properties that do not exist. They could even misrepresent the terms of the deal. There are ways to avoid being victim to scams. Here are some warning signs and the most common scams you should watch out for.

Lack of proper documentation

If you are looking to purchase a property and the seller does not have the proper paperwork, this should be a red flag. Some scammers promise to send over documentation such as title deeds only after the buyer sends financial information or money.

Pressure to act immediately

Scammers will put a lot of pressure on you to send your personal information or money right away. They may make you believe that you could miss out on the house if you do not act immediately. When you are being pressured to act, you should take it as a red flag. In a normal buying process, your agent will make an offer. After the seller accepts the offer, you will make a small deposit as a down payment.

Unrealistic guarantees

This is another red flag to look out for when searching for properties on property buy sell online. Anytime a lender or seller promises you something that appears to be too good to be true, it should be a red flag. This is a common strategy that scammers use. When homeowners are on the brink of defaulting, scammers will promise to make the necessary changes to your home loan in exchange for payment.

Making demands to wire money

Scammers can demand that you wire them money directly as a down payment. This is not how the process takes place and it should be a red flag.

Home inspection scam

It is important to do home inspections before buying a property. This is the best way the lender can ensure you are paying the fair value for the home. In an inspection scam, unqualified service providers perform the inspection and hide potential issues with the property. You can prevent this type of scam by asking a lot of questions and looking for any signs of irregularities. You need to ensure that the inspector can access anywhere on the property and ask for the report so that you can inspect it.

Rental scam

A lot of renters look online to find new rental properties. Scammers take advantage by listing properties that do not exist to trick borrowers to send them money. Other times, they put a bait and switch by sharing low-quality houses at a high price.

You can prevent this scam by checking the listing pictures for the MLS watermark. It is a good idea to visit a commercial property for sale San Diego before agreeing to buy or rent it.

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