Telltale Signs Your Estate Agent is Scamming You

estate agent

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It is no surprise that real estate investment is a matter of finding the best deals to the customers for property sale, and they also sell the family homes. After the estate agent has a conversation with the customer, what comes in the estate agent`s mind is the profit that he or she is in the likelihood of making at the end. In the world today and the current property market, it is quite difficult in scoring a deal that no one else has.

You may ask yourself some questions if the deal was too good to be true or have you fallen to be prey to a scam. About that, there are several surefire signs that your investment property deal might not be as hot as it seems.

There is also sad truth affecting the landlords since they often fall prey to impersonators. If by any chance that there is an ongoing excuse for not meeting the landlords, it is very important to check on the legitimacy of the estate agent before taking another step of making payment on the property. It is very important to go through a title company to give yourself an assurance that the person you deal with is the real titleholder.

Sometimes it happens that the sons or daughters go-ahead to sell the family home without their parents` authority hence creating conflict after sometimes. Sell of family home needs to involve several people such as the lawyer and legal documents such as the title deed bearing the name of the owner. Afterward, you can now make the next step of buying from the owner or estate agents.

Property sale scandals have gone ahead in creating conflict among communities leaving the property untouched since the parties involved claim to be owning the property. Therefore there are some telltale signs that you need to be aware of such as;

Estate agents promise `guaranteed` returns

There are no such things as guaranteed returns in the long run or sure thing in the real estate investment game or such kind of investment in that matter (Merton & Bodie, 1992). Investing in real estate is the acceptance of immediate risk of gaining long term profit possibility. If you make an assessment yourself that there is the possibility of guaranteed profit, then you can go ahead in buying the property.

Requests for financial info upfront

It may sound so good, but it reaches a point where people go ahead, falling prey to this kind of real estate scam (Leano, 2006). The agent brings you to a perfect picture that makes you believe it in good faith; afterward, he goes ahead, asking you for your financial information to make sure that you are a legitimate buyer. If they find that you are in the process of landing into such kind of killer deal, some psychological compulsions drive you to throw your hard-earned money to them.

The unfortunate truth behind this is that the majority of companies typically end up collecting financial information for fraud purposes (Leano, 2006). Therefore, it is essential to be keen when such kinds of agents go ahead in asking for your financial information.

Becoming blind to important information

Before going ahead in acquiring property from the agents, there is some important information that needs not to be taken for granted. There are several reasons that property is normally sold and such kind of idea you need to be aware of it to avoid falling into a trap. Some properties may be indicated as  “property on sale ASAP”. So that the property owners can at least get it off their hands before things become worse (Thrall, 2002). The deal seems to be awesome when you look at the property.

There are often some things that attract you in making a decision of buying it such as a good location, the possibility of rental income seems to be great and there is a high demand for the property. The owner of the property may be selling it for a matter of reasons such as repayment of the mortgage. The mortgage repayment time could be due hence the owner putting the property under the hands of estate agents.

Cash buyers for houses are often trapped for such kinds of deals once they have some cash in hand. Cash buyers for houses sometimes feel that it is quite expensive to hire consultants to make decisions for them hence they end up in making wrong decisions.

Getting important information and doing some research such as property location is very important. The location of the property may be subjected to destruction after the city council decides to build a landfill or carry out road construction. If by any chance you never decided to do your own research, you will lack the clue of what would be in the likelihood of happening.

If you check the property on the paper, it may be quite interesting at the moment since the homeowner would be doing his or her best to get rid of the property by initiating fast house sale (Thrall, 2002).

References

Thrall, G. I. (2002). Business geography and new real estate market analysis. Oxford University Press on Demand.
Leano, H. (2006). U.S. Patent Application No. 10/711,805.
Merton, R. C., & Bodie, Z. (1992). On the management of financial guarantees. Financial Management, 87-109.

About Vishaal Bhat 537 Articles
Student,Teacher, Father, Pharmacologist, Chess enthusiast, Blogger and Right-of-center political views