Top Real Estate Scams and How to Avoid Them

In today’s competitive housing market, buyers, sellers, and renters face an evolving landscape—not just of shifting prices and fierce bidding wars, but also rising scams. From wire fraud to fake listings, scammers exploit emotional stress and urgency to trick unsuspecting families. This post breaks down the most dangerous real estate scams and shows you how to steer clear—so you can protect your money, your family’s peace, and your future.

1. Wire Fraud and Escrow Scams

Why it matters
Wire fraud tops the scam charts, especially during closing. Fraudsters impersonate title companies, lenders, or your Realtor—sometimes even hacking legitimate emails—to redirect your down payment or closing funds. Victims send money in good faith to fraudulent accounts, only to discover the scam when it’s too late.

How to avoid it
Always verify wire instructions by calling your agent, lender, or title company using a saved, trusted phone number—not a number sent via email. Get confirmation verbally and in writing. Never click a new link or email before contacting your professional directly.

• Always call before you transfer funds.

• Never trust last-minute changes without verification.

2. Fake Listings and Rental Frauds

The bait-and-switch danger
Scammers create fake listings—sometimes lifted entirely from legitimate sources—offering homes or rentals at remarkable bargains. They lure families with rapid move-in promises but vanish once deposits are paid

Students, relocating workers, and families in need often fall prey. Common rules from rental scams include:

• Asking for money before showing the property.

• Virtually staged “tours” only and excuses for no in-person visits.

• Listings that exist elsewhere under different agents.

Protection tips
Only work with licensed Realtors who can verify listings. Always see the property in person, meet the landlord or agent face-to-face, check for current postings online, and avoid wiring cash to private individuals without escrow.

3. Foreclosure Relief & Equity‑Stripping Scams

What they are
Struggling homeowners may be targeted by foreclosure “rescue” companies promising to save their homes—for a fee. Instead, the homeowner ends up signing away their deed, losing equity, or paying high fees with no relief.

Equity-stripping involves buyers convincing homeowners in distress to transfer the home’s title while secretly profiting from mortgage or rent payments, often displacing the family later.

Defensive measures
Homeowners must:

• Never sign over the deed or pay upfront fees.

• Consult a HUD‑approved housing counselor or speak directly with your mortgage provider.

• Ask for all fee disclosures in writing and review contracts carefully.
  

4. Predatory Lending and Loan‑Flipping

The cycle of financial drain
Predatory lenders offer frequent refinance opportunities, charging excessive fees and resetting loan terms, eating away at your equity. Seniors and families with limited knowledge are common targets for loan‑flipping scams.

Spotting a bad deal
Beware of lenders suggesting urgent refinancing or guaranteed approval without checks. These often come bundled with confusing paperwork and inflated interest rates.

Safe strategies
Use only reputable, licensed lenders. Don’t proceed until you’ve consulted a trusted advisor—an attorney, financial planner, or Realtor.

5. Deed and Title Fraud

Why it’s scary
In deed fraud, scammers forge your signature to transfer ownership, mortgages, or liens on your property—frequently without your knowledge. These illegal transfers often surface only when you attempt to sell, or during a refinancing process .

Prevention steps

• Regularly monitor your title through online services or county records.

• Secure title insurance.

• Keep personal information protected to guard against identity theft.
  

6. Phishing and Email Scams

Agents and clients are in the line of fire
Emails appearing to come from your Realtor, lender, or title company may be phishing attempts. A fraudulent link or attachment could compromise account credentials or financial info.

Protect yourself

• Verify sender and domain. Avoid generic email addresses.

• Never click suspicious links or attachments.

• Confirm wire changes over the phone.
  

7. Advance‑Fee and Overpayment Scams

How they work
Scammers may advertise properties for rent or sale and ask for an upfront "reservation fee" or deposit. Once paid, the listing disappears. Others offer to pay more than needed and ask you to refund the difference—before their check bounces.

Avoiding the trap

• Treat advance‑fee requests as red flags.

• Don’t process transactions without escrow or official documentation.

• Beware of suspicious overpayments—especially from unverified buyers.
  

8. Vacant Land and “Swampland” Scams

Not only apartments and houses
Some scams involve selling undevelopable land—swampland, wilderness, or plots with heavy restrictions. Victims learn too late that the land is worthless or unusable.

What to do

• Always verify ownership and check zoning through official channels.

• Personally inspect the property—or hire a local surveyor.

• Demand clear title, maps, and access rights documentation.

9. Fake Buyer and Wholesaler Messages

When your phone rings
You may receive unsolicited texts or calls claiming interest in your home—sometimes even offering to buy without seeing it. These can be attempts to phish sensitive info or collect funds under false pretenses .

Stay sharp
Work with your Realtor: agents screen buyers, verify their credentials, and can confirm authenticity. Never share personal or banking info based on an anonymous message.

10. Fake Inspectors and Contractors

Selling confidence—for profit
If an inspector shows up without credentials, overlooks critical areas, or rushes your inspection, they may be hiding defects. Other times, contractors may quote one price initially, then impose hidden costs later. These tactics can cost families tens of thousands unexpectedly.

Inspection IQ

• Always verify licenses and insurance.

• Ask for references and sample reports.

• Be present during the inspection.

• Obtain written contracts with specific scopes and pricing.

How to Protect Your Family During Real Estate Transactions

Beyond avoiding scams, families have broader concerns when relocating or purchasing a home. Here’s how to safeguard those essential factors:

• School quality: Research local school ratings and class sizes via school district websites and parent forums. Avoid agents who make vague claims; insist on up‑to‑date performance data.

• Parks and community: Visit the local park, playground, or recreation center. Talk to neighbors about community events or after‑school programs that support kids.

• Safety first: Review local crime stats. Walk the neighborhood at different times of day to feel its safety and atmosphere.

• Housing options: Families often need varied options—yards, multi-bedroom layouts, multi‑generational spaces. Use your Realtor to filter listings accordingly.

• Ongoing community: Look for active neighborhood groups, calendar events, or social media pages—it helps integrate the family quickly.

CharlieBrown excels in matching families with neighborhoods that fit these values—whether it’s a condo or a family home with parks nearby.