Quck answer
Real estate “catfishing” refers to fraudulent practices in the real estate industry where scammers misrepresent properties to deceive buyers or renters. To avoid falling victim to catfishing, here are some tips:
1. Verify the legitimacy of the listing: Check if the property is listed on reputable platforms or with licensed real estate agents.
2. Conduct thorough research: Look for additional information about the property, such as its history, ownership, and market value.
3. Visit the property in person: Insist on visiting the property before making any transactions to ensure it matches the description and photos.
4. Be cautious of suspiciously low prices: If a deal seems too good to be true, it probably is. Compare prices with similar properties in the area.
5. Use secure payment methods: Avoid making payments through wire transfers or cash. Opt for secure methods like credit cards or escrow services.
By following these steps, individuals can protect themselves from falling victim to real estate “catfishing” scams.
Deceptive practices, commonly known as catfishing, are not limited to social media. According to Nicole Beauchamp, an agent at Engel & Völkers in New York City, there are various forms of catfishing in real estate. Although online real estate activities have increased transparency in transactions, they have also raised the risk of scams. Read on to learn how to spot a catfishing scam while searching for houses and rentals online.
1. Verify Listing Photos
Just like social media users, dishonest landlords and agents use photo editing tricks, such as wide-angle lenses and filters, to enhance the online images of less-than-perfect homes. To determine if a photo has been tampered with, check the property’s listing history. Many sites provide previous listings for the same property, so you can compare descriptions and photos to see if they are accurate. If a property looked like a wreck in previous listings but appears renovated now, it may be a scam.
However, agent Tamar Asken of Avenue 8 cautions that what might seem like distorted photos could be virtually staged spaces. In these cases, agents should be honest about what is accurate in the images and what has been adjusted.
2. Verify Addresses
John Walkup, co-founder of UrbanDigs, explains that falsifying a property’s address in an online listing is common. Misleading addresses are typically switched unit names, such as 4A to A4, and are meant to evade days on the market and price cut statistics. To verify an address, check the property’s listing history on sites like StreetEasy and Apartments.com. This way, you can ensure that the descriptions, photos, and floor plans in the current listing match those in previous listings of the property.
3. Beware of Fake Rental Listings
Scammers create fake rental listings by stealing photos and property descriptions from legitimate real estate websites. These advertisements are rampant and often advertise properties that are not available for rent or sale. To avoid falling for this scam, compare the listing price with similar properties in the area and, if possible, visit the site in person. If the person or company renting the property cannot show it, take it as a red flag and step away.
4. Stay Alert for Fake Email Addresses.
The F.B.I has reported an increase in wire fraud scams where scammers use a fake email address to ask buyers to transfer their down payment funds to fraudulent bank accounts. A fake email address is created by a sender who forges a legitimate email address to deceive the recipient. These fraudsters hack into a real estate agent’s account and closely monitor email exchanges between buyers and agents before sending false wiring instructions at the last moment using a fake email address.
To avoid losing your down payment, Beauchamp advises that you should always call and voice verify any wire instructions you receive with your agent, title company, or attorney. “When using a mobile device, you can also tap on the sender’s name to double-check the email address that sent the information,” she adds.
5. Verify the Real Estate Agent Before Sending Money.
Unfortunately, not all listing agents have the credentials they claim to have, and scammers often pose as brokers to cheat renters out of deposit funds. Broker Sheila Trichter of Warburg Realty says that there is one surefire way to ensure that you are not deceived. “Unless you secure a broker directly through a major firm, always verify their identity (and the firm) before you send a check,” she advises.
FAQ
1. What is real estate “catfishing”?
Real estate “catfishing” refers to a deceptive practice where someone misrepresents a property listing online. It involves using fake photos, inaccurate descriptions, or even advertising properties that do not exist in order to lure unsuspecting buyers or renters.
2. How can I spot real estate “catfishing”?
To spot real estate “catfishing,” pay attention to any red flags such as extremely low prices for desirable properties, photos that look too good to be true, inconsistent information in the listing, or requests for payment before viewing the property. It is also helpful to do a reverse image search of the property photos to see if they are being used elsewhere on the internet.
3. What are the risks of falling for real estate “catfishing”?
Falling for real estate “catfishing” can result in financial loss, as scammers often request upfront payments or deposits for properties that do not exist. Additionally, victims may waste time and effort pursuing a property that is not available or end up in a rental agreement with unfavorable terms.
4. How can I protect myself from real estate “catfishing”?
To protect yourself from real estate “catfishing,” always do thorough research on the property and the person or agency advertising it. Verify the legitimacy of the listing by contacting the property owner or a reputable real estate agency. It is also recommended to view the property in person before making any payments or signing any contracts.
5. What should I do if I suspect real estate “catfishing”?
If you suspect real estate “catfishing,” report the listing to the website or platform where it was posted. You can also contact local authorities or real estate regulatory bodies to alert them about the fraudulent activity. By taking action, you can help prevent others from falling victim to the scam.