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It's another one of those firsts . . . This one is important.

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119

I had another one of those "I've seen everything moments" yesterday, and this one is really important if you list houses. A buyer called about a listing I have in my area. He asked typical questions and promised to drive by the house. Nothing unusual there. 

A little while later, he called again. This time, he wanted a little more information, and he asked about the roof. I gave him the info I had. A short while later, he called again and wanted to know the owner's name and where he lived. I told him that information is available in the tax records, but I gave it to him anyway.

He called a fourth time a few hours later and told me he had lied about his name. It wasn't what he said it was, but it was something else. Then he told me he wasn't interested in the house, but he was a contractor who was looking to replace the roof.

It seems that an individual from PA had called him and asked for an estimate. He said he was the owner and needed to have the roof replaced before he moved in. From the listing photos, he could see it was vacant, and of course the listing said it was vacant. 

He found the contractor on Thumbtack.com. When a contractor accepts a lead on Thumbtack, he/she is billed $90 for the lead. The individual sent the contractor out to measure the roof and asked for an estimate. When the contractor went out, he noticed my real estate sign in the yard.

The contractor went ahead and measured the roof and worked up an estimate. At that point, the individual accepted the estimate and said to do the work. There were a few other things that tipped the contractor off about the individual, but up until he decided to do the work, it was feasible that it was real. The contractor purposely gave him a high estimate to see if he was legitimate. After talking to me a couple times, he really got suspicious about the scammer.

The scammer was going to pay his deposit for the work by way of credit card. This is where the contractor new it was a scam. The individual asked for the contractor's merchant account number so he could transfer the money into his account. The reality is, he was going to drain the contractor's account.

I was able to track the scammer to a housing complex in Norrisville, PA. This morning, I contacted the authorities and filled them in on the scam. If you have homes listed, you may want to put a notice somewhere visible to alert contractors that you are not soliciting estimates for any work. Someone could conceivably start a project on a home you have listed before he realizes it is a scam. The home may end up damaged and there will surely be questions about liability. 

Comments (73)

Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Mike - Thanks for sharing this information. It seems a new scam is created almost daily. Good information for agents, as well as any home seller, to know.

Nov 28, 2015 03:18 PM
Jaretta Buckholtz
Pearson Smith Realty, LLC - Manassas, VA
Passionate-Professional-Patient

Now this is scary. You are right, just when you've seen it all, something else surfaces. I'm glad you both worked through it before it got messy.

Nov 28, 2015 07:15 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Way to be heads up...these situations are happening more and more...sad!

Nov 28, 2015 11:21 PM
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Hey, Mike!

I included this post in today's "Last Week's Favorites".  Hope your Thanksgiving was fun.

Nov 29, 2015 12:40 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Don't you wonder what could happen if these people put their energy into legitimate activities instead of scams?

Nov 29, 2015 01:33 AM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Hi Mike, good jov on warning us about this scam.  Thanks!

Nov 29, 2015 04:23 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Oh my goodness.  This is a first for me too.  Smart thinking on the part of the contractor.

Nov 29, 2015 06:08 AM
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

I really wonder what these low-life's could accomplish if they put all that energy into something legit!

Nov 29, 2015 06:40 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Several years ago I started getting advice from high schools that my house was for rent on Craigslist.  I ignored them. Finally I figured out the vacant home was used a front for a rental scam. The owners quickly changed the locks.... It was quickly closed so I needed not to deal with the people pretending to be me(I guess)....

Sam Shueh

 

 

Nov 29, 2015 08:15 AM
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Mike, that's a new one for me.  This contractor was definitely on the ball and cautious! 

Nov 29, 2015 09:29 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

The scammers are so creative.  That contractor must have been victimized before or knew someone that had been

Nov 29, 2015 11:51 AM
Knolly Williams
Success With Listings - Austin, TX

Thanks for sharing Mike! It's amazing what ingenuity scammers have. If they would only use thier creativity for good, they could earn a decent living and help make the world a better place.

Nov 29, 2015 12:12 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Thank you for the information. I have not heard of this scam. I will be careful.

Nov 29, 2015 08:13 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Mike,

Wow!! It is utterly amazing to me the scams that people come up with! If only they could channel their energies in the right direction! Thank you for the heads up...I thought I'd heard everything!!

Nov 29, 2015 08:26 PM
Shanna Hall
Real Estate Solutions - Kirkwood, MO
I love selling houses!!!St. Louis, MO 314-703-1311

Wow- good catch on the contractors part!  And exccellent blog material!!!

Nov 30, 2015 11:59 AM
RealtyTech Inc.
Real Estate Technology and Marketing - Thousand Oaks, CA
Premium Websites/IDX/Marketing for Realtors

Mike, thanks for the post! Its crazy the time and effort these scammers are willing to spend to ruin other people's lives. 

Dec 01, 2015 12:29 AM
Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-739-3843

Mike, wow, you are quite the sleuth! I actually had a home inspector call me with somewhat of a similar scam and he knew that I had most of the listings in that area and was checking to see if this was "for real". He had had it happen and had gotten ANOTHER call from a buyer which concerned him.  Oddly, he tipped ME off that my buyers were having this done on the side without notifying me first. It turned out to be that this FSBO that I was helping them with, they couldn't get financing for, so they worked out a lease instead with the friends/would-be sellers. I wouldn't have known unless he had called me about the inspection! 

Dec 01, 2015 11:06 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Mike, Holy Crap!!  What will dishonest people think of next?  That was way out there but I can see how one might just pull it off.

Dec 02, 2015 12:22 AM
Kelly Hagglund
The Kelly Group Real Estate - Newberg, OR
SW Portland Real Estate Expert

Wow, I hadn't heard about this scam yet. Thanks for sharing! Good thing the contractor knew it was a scam too and notified you as well.

Dec 02, 2015 04:16 AM
Trent Dalrymple (248) 854-0625
Home State Bank - Bloomfield Hills, MI
Allowing Mortgage Professionals to Lend Nationwide

That's a new one on me, and after 29 years you'd think you heard them all.  The other scary part is it could create a mechanics lien on the unknowing homeowner's property if the work had been started or materials dropped at the site and the contractors isn't paid.  Thanks for the info.

Dec 02, 2015 08:36 AM