Scams In Real Estate To Watch Out For

The real estate industry is rife with scam artists, and millions of homebuyers, sellers, and owners fall victim every year.

The truth is, the more that real estate and its processes go digital, the more at risk our data, information and, most importantly, finances are as we go about these massive financial transactions in our lives.

It requires extra diligence on our part, as well as from the agents, lenders, title companies, and everyone else we do business with.

Are you considering buying, selling, or renting a home? Here are the scams you should watch out for — and how to spot them.

1. Wire Fraud

This is the big one, accounting for millions (potentially billions) in financial losses every year. It typically occurs with a single email hack. The scam artist gains access to just one email account involved in the transaction — a real estate agent, someone at the mortgage lender or broker’s office, an escrow officer, a title agent, or even a buyer or seller, and then monitors communications from there.

Once the closing date nears, the scammer sends a fake email — usually using spoofed email addresses very similar to those actually involved in the sale — asking the party to wire their funds (down payment, closing costs, mortgage payoff) using certain instructions. Little does the victim know, those instructions aren’t from a legitimate source, and their money is wired right into an offshore bank account never to be seen again.

2. Bait & Switch

This is the scam that sellers need to worry about. A buyer comes in with an above-market offer. The home is then switched to pending and no other offers are accepted. Weeks pass, and as closing nears, the buyer asks for an extension and the seller grants, knowing the high offer they’ll be getting in return. In the meantime, the seller is stuck paying the mortgage payment, taxes, utilities, etc., while the buyer keeps spinning their wheels.

After a few rounds of this, they come back with an excuse for why their original offer will no longer work, instead offering a low-ball bid. Frustrated by the extra costs and hesitant to re-list the home and start from scratch, the seller accepts, losing out on thousands of dollars and months of time and hassle.

3. The Phantom Listing

This one typically involves a property in which the owner is out on vacation, away for business, or only a temporary resident. A scam artist gets wind of the home’s temporary vacancy, markets the home to on-the-market renters. They might even bill it as a steal — “Just XX price for this pre-furnished and fully decorated property!”

They then close the deal, often asking for several months of rent in advance (plus deposits, fees, etc.). By the time the money has exchanged hands and you’ve moved in, the real owner comes back to find their home occupied by an unwanted (and illegal) tenant.

This can also happen with out-of-town homebuyers. Their “agent” sends them photos or video of a home — one that’s not actually available — and asks them to wire earnest money and option fees in order to nab the property. Thinking this is the norm when buying from out of town, the buyer complies, only to lose thousands of dollars in the process.

4. Duplicate Listings

In addition to fake and phantom listings, there’s also a scam involving duplicate listings. Here’s how it works: Scammers copy a legitimate rental listing, post it on other sites (Craigslist is a big one), and drop the price for a few hundred dollars to get some attention. They then ask the renter to wire their security deposit, first month’s rent, and other fees in order to hold the property. Once the money is sent, they (and that money) disappear into the night, never to be seen or heard from again.

5. Fake Agents & Real Estate Lawyers

Fraudsters are also known to impersonate real estate attorneys and agents, too. They might choose a legitimate professional and then mock up a website or profile using their identity, or they may create an entirely new persona out of thin air. Once they’ve got a potential buyer on the hook, they show them properties, help them find the right one, and then steal their deposits, escrow money, or closing costs with faux wiring instructions.

Red Flags to Watch for

Avoiding these and other scams is all about being diligent, reading your emails carefully, and vetting who you work with.

Specifically, you should:

• Look carefully at each individual email address on a message, especially if it contains a request for money or financial data
• Voice verify any wiring instructions or requests for money
• Verify the license and credentials of your agent and real estate attorney
• Be wary of any too-low-priced or pre-furnished/decorated homes
• Research the property you’re considering using local appraisal district and property records
• Use double-layer identification on your emails and make sure your vendors do, too
• Don’t send financial documents over email; use a secure portal or folder instead

Most importantly, don’t send money to anyone unless you’ve verified who they are and what you are getting in return.

article source: By Aly Yale|June 13th, 2019

Use Less, Save More: Energy-Efficient Tips for Lowering Your Utility Bills

Save more moola for summer fun — try these savvy energy-saving tips, and ditch the exorbitant energy bills once and for all.

We all enjoy being warm and cozy in the winter, and cool as a cucumber in the summer — but the energy bills that keep us there can get out of hand quickly.  Luckily, home updates, inexpensive projects, and even minor changes in routine can create notable savings.

 

Hunt for an energy-efficient home

When my husband and I started our home search, we knew energy efficiency was a priority. Before we found a real estate agent, we carefully considered how many square feet we’d need to be comfortable as a family — and it wasn’t as much space as we’d thought.
House hunting was absolutely about finding a place that looked and felt like home, but we also kept in mind practical considerations. Updated windows, modern appliances, and a sufficiently insulated attic can have big impacts on home energy use.
We also found that some home features, such as cathedral ceilings and sun rooms, can increase energy costs. And if you’re home shopping in hot climates, keep an eye out for homes with cool-roof features to prevent the air-conditioning from working overtime.
Once we found a home we loved, we lined up a home inspector with a great reputation. Walking through the home alongside the inspector taught us a lot about our home’s energy efficiency. We learned how our insulation levels compared to standards in our region, and the age of major appliances and equipment in the home.
If your dream home doesn’t come with an energy-efficient water heater or updated windows, there’s no need to despair. Issues that show up during a home inspection give you grounds to negotiate with the seller.
In the end, our family of three chose a modern cottage (just under 800 square feet) in a great neighborhood with a large garage for hobbies and storage space. We get a lot of use out of our generous outdoor entertaining space and garage, while the modest size of our home keeps our monthly utility bills low. It’s a choice we don’t regret!

 

Assess major appliances and equipment

Shopping for efficient new appliances and equipment is easy, thanks to independent certification from Energy Star. Most modern appliances feature an Energy Star label that gives you a yearly estimated operating cost:

Image from the Federal Trade Commission.

Older appliances may not be as easy to assess, but you can use the U.S. Department of Energy’s appliance energy calculator to estimate how much energy they use.
With roughly half of all energy expenses going to heating and cooling, high-performing heating, ventilation, and air-conditioning (HVAC) equipment should be a priority for every homeowner. Overall efficiency, however, isn’t the only factor to consider when evaluating your heating and cooling system.
When we initially bought our home, the previous owners installed an oversized furnace. It might’ve been a great choice for a larger home, but not ours. The furnace would inefficiently short cycle during winter, ratcheting up our energy costs while causing excessive wear and tear on the furnace itself. When we replaced it with a model half the size, we saved a bundle on our monthly utility bill.

 

Try quick, energy-efficient fixes

Not a lot of dollars to put down on a new HVAC system? No problem. Not every move toward energy efficiency requires an expensive home upgrade.
There are all kinds of quick fixes that owners and renters can make to cut back on energy costs. Energy Star has simple money saving tips that anyone can put in place today.
Easy tasks, such as replacing weather stripping on a drafty front door, washing laundry in cold water, changing your ceiling fan’s direction, and using energy-efficient light bulbs, can all make an impact on your budget’s bottom line.

 

Seek expert guidance

Expert help doesn’t have to be expensive. Many local utility companies provide an energy audit, and they often offer them for no charge.
We recently scheduled this kind of assessment, and when they come out, they’ll give us free advice on how to lower our energy bill even further. As a part of their visit, they’ll update up to 20 light bulbs at no cost, increasing our home’s efficiency on the spot. They offer high-performance shower heads and other free perks, too.

 

Lower your utility bill — then save a little more

Energy-efficient upgrades provide a whole lot of bang for your buck. In addition to lowering your monthly utility bill or making your home more comfortable in extreme weather, you might also be eligible for tax credits, rebates, and additional savings. We updated our windows and replaced our furnace by using tax credits.
The number of programs offering additional savings can be overwhelming. Luckily, you can conduct some quick research online to ensure you’re not missing out. The U.S. Department of Energy’s tax credits, rebates, and savings database is a great place to start.

By Melanie Harding