I think it's no coincidence that we are noticing more and more scams these days. It seems like recessions and depressions really bring out the rats both in the real estate world, lending world and in the world in general.
Like all these companies promising to increase our business if we fork over thousands of dollars to them - but that's a different rant for another day.
Today I feel the need to warn the public about Real Estate scams - specifically "Joe the I'm not really a real estate agent, but I play one to get your money".
If you are going to lease or buy real estate - keep in mind the landlord and seller pay the commission in most cases. Which means there is no reason for you NOT to use a Realtor. And if a landlord or seller do not want to pay commissions that will be clear from the get go.
Why do I say this all of a sudden - because I am seeing SO many scams out there right now from people that may or may not be a licensed agent.
1. Yard signs: Make sure its a valid agency sign - not a sign that looks like it was created this morning at Kinkos. And if it was crated by Kinkos does it say "by owner" if not - then why isn't it a brokerage sign?
2. If you're looking online and it's listed by an agent - especially apartments and lofts - beware - JUST because it's an agent doesn't mean the listing is on the up and up. Call them and do your homework.
Particularly on Craig’s' List where they are not required to use MLS #'s etc. For years I have found agents using the ol bait and switch tactic. You call on property A they tell you "oh I'm sorry that property is no longer available, but I have several others in that unit and area I'd be happy to show you." In this instance they were using property A to lure you to call them - they are prospecting clients by using a property that is no longer available. Clever but no dice!
Once again - why is this coming up all of a sudden - well yesterday I got to play detective for a bit.
My day was hijacked when a local broker that specializes in Campus properties called and asked if we had a listing on a particular street. I looked it up in the listing system and nope not there. I asked him if there was a name on the sign and he said - "no not a name just a phone number and when I call it all it says is Sky Realty and then there is a beep". ODD??
So I get the address from him and get the phone number he called and put on my investigation cap. I call the number he gave me - sure enough all it says is "Sky Realty" and then a beep. What? our agents wouldn't do that, my broker would have their head for that and they know it!
So I go back to my broker's office and say call this number. He dials and when the mystery message comes on looks at me like what the hell was that? So at this point this is getting very strange and very fishy. I hop in my car, camera in hand and go visit this property.
First of all it's not one of our signs, it's a home grown sign - that says "pre lease" and the phone number in question. I snap my pictures and go knock on the door. This is one of those ultra modern homes that kind of look like an office building. So I start wondering if it's an office building and perhaps they are using a sign to generate business- so I knock and then open the door. Well it's not a business and now I'm standing in someones house with three college girls all in workout clothes and Uggs staring at me like I'm crazy - which apparently I am.
After establishing it's their house I ask about the sign. "Yeah our landlord put that up because he doesn't want to work with agents - that's not even his phone number". RED FLAG RED FLAG.
So I tell them he's representing himself as someone from Sky Realty and that I'm from Sky Realty and we are getting "calls" (one call but whatever) on the property. Then she lets loose "what an idiot, you can take that sign down I don't even know why he put it up, do you want his real number?" Why yes I would - thank you. (that was easy)
She proceeds to give me his name and number - and I head back to download some photos. Long story short - we found out this guy ISN'T a Realtor - he was misleading those that called and using our company name to do it. IDIOT party of one. Actually party of three b/c I suspect the owners of the house -which are his parents are in on this as well. And yeah one of the owners is a local doctor!
The only thing we can't figure out is why? If he didn't want to work with agents just put a "For Rent by Owner" and then if an agent calls say you don't pay broker's commissions. You'll sit on the property forever but it's better than sitting in jail!
So heads up buyers, renters and agents - fraud looms around every corner and it's up to us to be aware and spend a little extra time doing some homework.
If you are in the market for real estate - of any kind - call a professional and avoid the fishy shifty "I'm not an agent but I play one to take your money" kinda people.
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