Selling a home for the first time can be an intimidating process, and there are scams out there you are likely to come across. According to an FBI report, nearly 14,000 people fell victim to real estate and rental scams in 2020, with losses totaling more than $213 million. Additionally, there are ways to eliminate money stress if you’re feeling anxious with the whole process.
Read on for our list of the most common real estate scams, how to identify them, and how to avoid them so that you can feel empowered when you sell your first home.
23 Legit Ways to Make Extra Cash
1. Business email hacks and wire transfer fraud
By far the most common scam, this is when your real estate agent or title company’s email gets hacked, revealing your information and closing details. The scammer will then impersonate the seller, asking the title company to wire transfer the escrow funds to the scammer’s account instead. Referred to as Business Email Compromise (BEC) scams by the FBI, the agency reports that BEC complaints increased 69% from 2019 to 2020.
Red flags: real estate professionals who haven’t addressed cybersecurity issues with you upfront, which may indicate their lack of awareness.
2. Lock-out agreements and processing fees
A prospective buyer wants to complete a sale quickly and gets you to sign a contract with a lock-out clause, which prevents you from selling the house to anyone else. Betting on your desire to finish the transaction so it doesn’t drag out for months, the…