Scams are rife at the moment and the tricky part is they are starting to look and sound more legitimate than they have in the past. Once scams were easy to spot and identify, but now days most people would be forgiven for questioning everyday transactions due to the slick nature of scams in the digital age. Here are some recent scam attempts that Stanton & Taylor Real Estate has been made aware of, and how you can avoid falling into one of these property based traps.
SCAM 1 - Applying for properties via Marketplace
The rental market is currently very hot, making it increasingly difficult to secure a rental listing. There are lots of people viewing and applying for vacant properties, so we are constantly fielding phone calls from disappointed people who have missed out on multiple properties from multiple agencies. When times are tough and it's hard to secure a property to lease, it's understandable that people are looking for an inside edge to try and get what they are after.
This scam has resulted from this desperate necessity for house hunters. Scammers are taking photos from the real estate portals and agent's websites, and listing them on Facebook Marketplace under fake profiles. They ask for the bond and holding deposit, which in some cases can be in excess of $1000 depending on the price of the listing. Prospective tenants are being asked to sign fake documents and given bank account details to transfer their money with a promise to securing the property.
HOW CAN I AVOID THIS SCAM?
The simple answer is, don't ever transfer money or sign documents for a rental property that you haven't viewed. Real Estate agents don't generally advertise properties on Facebook Marketplace - the most common method of marketing for agents is real estate portals such as Realestate.com.au and Domain.com.au, as well as the agencies individual website. Another way to check where the images originated is to do a reverse image search on Google. It will bring up the photos and their original website appearances. This will tell you if an agent is managing the property and the photos were ripped off the internet.
Some owners self manage their own properties - but check all of your facts and make sure you've viewed the property before parting ways with any money.
SCAM 2 - Sending deposits for sales purchases
Your sales agent is someone you will have met in person, most likely at an open house or two. They will build a relationship with you and get you to sign necessary paperwork when you've had an offer an acceptance on a property. The next step is to pay a deposit of 0.25% of the sale amount. Your agent will tell you exactly how much to pay and how you can make the payment. If you receive any follow up communication changing these details - call your agent immediately.
HOW CAN I AVOID THIS SCAM?
It is extremely unlikely that the agent will make a mistake with payment methods, and there is no reason in the middle of a sale for an agent to change where or how you make that payment. If you receive a redirection of funds request, be aware that this is likely a scammer who has intercepted your correspondence either with your agent, your bank or your conveyancer. Pick up the phone and confirm the correct details with your agent.
Top ways to avoid scams
* If something changes in the middle of a transaction - particularly regarding payment details, make a phone call to the agent to confirm.
* Search for properties via platforms such as Domain or Real Estate Australia who have cyber security measures in place to ensure listings are authentic.
* If it sounds too good to be true - it probably is!
* Check the email address/phone number of the agent and see if it matches to any suspicious looking correspondence.
* If you haven't viewed the property - don't sign anything and don't pay for anything.