How to Make Sure You’re Not Getting Scammed When Buying a Home

Scams are just about everywhere these days, aren’t they? They’re becoming increasingly common, like texts, emails, and phone calls pretending to be from the government claiming you owe money and must send it to avoid prosecution. Homebuying isn’t immune either, as CNBC reported, one man lost $150,000, wiring money to a thief instead of a bank. 

Whether you’re planning to buy a home among real estate for sale in Whistler or a house anywhere else, be extra cautious while considering the following. 

Wiring Money to a Distant Bank

The man who took the $150,000 loss fell for the wire transfer scam. There are loads of these scams going around. Just when you’re ready to close on that new home, you get an email. It looks legit, with all the right details, but the bank account instructions are different from what’s been provided before, requesting that you wire cash to an account at a distant bank. As it turns out, that account belongs to a criminal which means if you send it, you’re out your money and the house.

If you receive an email with any changes, before wiring any money or releasing payments of any kind, call your real estate agent and/or attorney. When communicating with anyone involved in the transaction, be sure that the email address is the same one that’s been used from the start. 

Make Sure All Documents are Sent Securely

Real estate agents tend to send contracts out as PDF attachments and these documents contain very sensitive, personal information that includes everything from loan amounts and deposit terms to the price and closing dates. Instead of sharing them via email which is less secure, they should be sent through a transaction management system like Dotloop. If your agent isn’t doing so, insist on it.

Never Buy Without Physically Touring the Home

If you’re looking for a home in an area hundreds or thousands of miles from where you live and your “agent” calls to tell you that he’s found the perfect place at a great price, you might be tempted to jump on it. Or maybe you’re told that there’s a condo that’s suddenly available in a really hot building.  But that agent says that it’s not exactly official yet, so you can only see it with a drive-by and photos. Eager to jump on it, you go ahead and wire the deposit money but when it’s time to get the keys suddenly the agent disappears because he never even had the listing. 

Never buy a place without touring it in person or at least sending someone you trust to do so. It’s also a must to look into your agent by getting references and checking them carefully.

Get Your Own Inspector

Sometimes unscrupulous owners will use a cosmetic fix to disguise a major issue with their home, like a sinkhole under the garage or toxic mold in the house. Then they’ll lie on the property disclosure statement and perhaps even get the inspector and real estate agent in on it too. Avoid this by hiring your own inspector you know can be trusted as you’ve checked their references. Have the inspector tour the property, carefully looking at flooring and fresh paint jobs.