Avoiding Real Estate Scams in 2024: A Guide to Pocket Listings

Real estate transactions can be a breeding ground for scams, with criminals preying on vulnerable homeowners and buyers. The Federal Bureau of Investigation reported over 9,500 internet-only real estate complaint cases in 2023, resulting in losses of more than $145 million. Scammers target individuals under duress due to various reasons like age, health issues, divorce, or loss of employment.

One common scam involves phone calls from individuals claiming to be affiliated with the federal government, offering to refinance or buy homes. These scammers use persuasive tactics to extract personal and financial information from unsuspecting victims. It is crucial to hang up and block such calls, as legitimate refinancing services and home-buying companies do not solicit over the phone.

Another prevalent scam occurs right before closing on a property, where buyers are asked to wire closing funds to a different account due to a supposed mistake. This classic scam can result in buyers losing significant amounts of money to scammers posing as legitimate recipients.

To protect oneself from real estate scams, it is essential to do thorough research on all parties involved, including real estate agents, attorneys, and lenders. Surrounding oneself with trustworthy professionals and being cautious about sharing personal and financial information can help prevent falling victim to these fraudulent schemes. If you suspect a scam or have been a victim, report the incident to the appropriate authorities promptly.