Buying a home is a major step—and you don’t need the added stress of avoiding real estate scams during the process. As with any major financial decision, you want to make sure you’re not being taken advantage of, and that you’re making a legitimate investment with your money. Here’s what to watch out for.
What types of scams should I look for as a buyer?
Fake home inspections. Always check the credentials of home inspectors before purchasing a home to make sure they’re licensed and certified. If they’re legitimate, they’ll show you proof of their qualifications so you can trust the home you’re buying has been properly examined.
Title scams.In this type of scam, the scammer—by means of identity theft—claims to own the home to sell it to you, the buyer. They might have convincing fake documents, like a deed or title. The real owner of the home likely has no idea they’re a target of title fraud.
Wire fraud. Once you’ve decided to purchase a home, you’ll need to put down a deposit, along with providing other payments. Working with a licensed, trusted real estate professional helps ensure that all money transfers are legitimate and necessary—instead of your money going to the wrong person.
Mortgage fraud. If you’re purchasing a home, you’ll likely need to qualify for a mortgage to do so. With rising interest rates, some buyers are turning to alternative lenders, but be careful. Some lenders may ask for cash fees upfront, so it’s best to stick with accredited financial institutions and use a licensed mortgage broker.
How can I protect myself as a buyer?
Be cautious when providing payment. Always double-check whether certain fees are common in the home buying process in Canada, and know where your money is going.
Do your research. If something seems too good to be true during the home-buying process, it’s wise to do a quick Google search or ask your agent about known scams.
Work with a trusted and experienced agent. The easiest way to make the home-buying process as smooth as possible? Work with someone you trust. An experienced agent, like those on our team, will ensure you avoid any real estate scams as a buyer—it’s one of the many benefits of working with a licensed agent.
Contact our team to start your home-buying journey today.
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