: What Buyers, Sellers & Renters Need to Know
Buying, selling, or renting a home involves large amounts of money, personal information, electronic documents, and plenty of emails and text messages. Unfortunately, that also makes real estate an attractive target for scammers.
Today’s scams can look surprisingly legitimate. A fraudulent email may appear to come from your real estate agent, attorney, lender, title company, landlord, or closing professional. Knowing what to watch for can help protect both your money and your personal information.
Wire Fraud Is One of the Biggest Concerns
Imagine being days away from closing and receiving an email telling you that the wiring instructions for your closing funds have changed.
The email looks legitimate. The name is familiar. The message sounds professional.
But the bank account belongs to a criminal.
Before wiring money for a real estate transaction, independently verify the instructions with your closing attorney or other authorized closing professional using a phone number you already know to be legitimate. Be extremely cautious if someone suddenly changes wiring instructions or pressures you to send money immediately.
Rental Scams
Rental scams are another common problem. Scammers may copy photographs and descriptions from legitimate listings and advertise a property as their own.
Warning signs can include someone who refuses to show the property, claims to be unavailable or out of the country, requests money before you have seen the property, or pressures you to send a deposit immediately.
Never assume that an online advertisement proves someone has the authority to rent the property.
Fake Buyers and Sellers
Real estate professionals and consumers may also encounter people pretending to be property owners, buyers, investors, or representatives of legitimate companies.
Vacant land, investment properties, second homes, and properties owned by people who live elsewhere can be particularly attractive targets for impersonation attempts.
Identity and ownership verification are becoming increasingly important parts of a safe transaction.
Phishing Emails and Text Messages
Scammers often try to create urgency:
“Your closing will be delayed.”
“Your deposit has not been received.”
“Please sign this updated document.”
“Your wiring instructions have changed.”
Before clicking a link, opening an unexpected attachment, providing personal information, or transferring money, verify the request through a separate, trusted method of communication.
Moving and Contractor Scams
The risks don't necessarily end at closing. Homeowners can encounter questionable movers, contractors, locksmiths, utility representatives, and home-service providers.
Research companies before hiring them, obtain written estimates and contracts when appropriate, and be cautious about unusually large upfront payments or pressure to make an immediate decision.
How Can You Protect Yourself?
A few simple habits can make a significant difference:
Verify all wiring instructions independently before transferring funds.
Be suspicious of last-minute changes involving money.
Never send a deposit simply because someone is pressuring you.
Confirm the identity of people involved in the transaction.
Use trusted contact information rather than relying solely on information contained in an unexpected email or text.
Protect passwords and use multifactor authentication when available.
Ask questions when something doesn't feel consistent with the transaction.
Contact your bank immediately if you believe money has been sent fraudulently.
Your Real Estate Transaction Should Have Checks and Balances
Technology has made real estate transactions faster and more convenient, but convenience should never replace verification.
Whether you're buying your first home, selling a longtime family property, searching for a rental, or purchasing an investment property, surround yourself with experienced professionals and establish clear communication from the beginning.
One of the simplest rules to remember is this:
When money or sensitive information is involved, stop and verify before you send.