It’s been said that technology can be both a blessing and a curse — and real estate is no exception. There’s no denying that when buying or selling homes today, the number of benefits we get from the tools at our fingertips is immense — from marketing properties in their best light to being able to adapt our strategies in real-time. Of course, not every technology-powered addition is developed — or harnessed — with good intentions in mind. Whether you’re getting ready to start your search or just want to stay up-to-date on the latest trends and pitfalls to avoid, we’re here to make sure you’re always in the know.

Keep reading to learn about the top scams in real estate today — and how you can make sure they don’t fool you!

#1 Foreclosure Rescue Scams

These days, scammers have made a habit of targeting homeowners who are facing foreclosure by promising to save their homes for a fee. They may ask for upfront payment or request that the homeowner sign over the deed to their property directly. To avoid this scam, work closely with your lender or an HUD-approved housing counselor, and be wary of anyone who pressures you to act quickly or asks for payment upfront.

#2 Title Fraud

Title fraud is a type of real estate scam where a fraudster illegally transfers the ownership or title of a property to themselves or another party without the knowledge or consent of the legitimate property owners. In the majority of cases, title fraud involves vacant properties that are not the homeowner’s primary residence. The first thing you can do to deter title fraud is to take preventative steps such as purchasing title insurance. Title insurance will oversee and protect your title from title fraud for every minute of the year. Alongside title insurance, you can check the property record on your county’s register of deeds website. While doing so, you’ll want to look for loans that you didn’t take out, titles that you or your attorney didn’t sign, or any possible liens.

Are you looking for more insights about buying or selling real estate in DC? Read these posts next:

• Reasons Why Working with a Realtor® is Worth Every Penny
• How to Sell Your Parent’s Home
• Signs the Market is Good for Buyers

#3 Flipping Fraud

We’ve all heard of flipping before, but the fraud factor emerges when a con artist buys a property with the intent to re-sell it at an artificially inflated price for a considerable profit, even though they only make minor improvements to it. Dishonest real estate investors may inflate property values, misrepresent the condition of homes, or use misleading appraisals to convince buyers to purchase overpriced properties. To avoid falling victim to flipping fraud, conduct thorough research on the property, get multiple appraisals, and consider hiring an independent inspector.

#4 Mortgage Fraud

This particular scheme can take several forms, such as lying on mortgage applications, inflating appraisals, or using fake documentation to qualify for a loan. Mortgage fraud schemes are perpetrated by individuals acting alone or in collusion with borrowers, loan originators, or real estate professionals. All mortgage fraud schemes contain a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan. Protect yourself by carefully reviewing all loan documents, working with reputable lenders, and reporting any suspicious activity to the appropriate authorities.

Do you have questions about mortgages? Read these posts next:

• Everything Your Need to Know About Mortgages Today
• Do You Really Need a Mortgage Broker?
• Top Mortgage Mistakes and How to Avoid Them

#5 Wire Fraud

Scammers have been known to intercept emails or other communications between buyers, sellers, and real estate professionals to deceive them into wiring funds to fraudulent accounts. How does this play out? Fraudsters will assume the identity of the title, real estate agent, or closing attorney and forge that person’s email and other details about the transaction. The scammers will then send an email to the unknowing buyer and provide new wire instructions to the criminal’s bank account. To prevent wire fraud, confirm all wiring instructions by phone with a trusted source before sending any money.

#6 Property Investment Schemes

Ponzi schemes or fraudulent investment opportunities promising high returns with little risk can target unsuspecting investors. How to ensure you don’t fall victim to this type of scam? Always conduct thorough due diligence on investment opportunities, verify the credentials of the individuals or companies involved, and be skeptical of promises that seem too good to be true.

There are many scams out there, but the best way to protect yourself is by working with a reliable and experienced real estate team. If you have questions about the market, get in touch today by email at jsmira@jennsmira.com or call us directly at 202.280.2060.