I read an interesting response to the Question & Answer section on the ActiveRain.com real estate website this morning which got my attention. The real estate agent who posed the question is a well-known real estate industry observer and the reply came from a luxury real estate specialist in Hawaii.
The Hawaii agent's response to this request for a short list of real estate fraud indicators was as follows (quoted text below is in bold italics):
- Listings advertised for sale on Craigslist.
Craigslist has acquired a reputation for shady real estate transactions. Some agents see it as a cheap way for them to get Web exposure, but most successful real estate professionals agree that Craigslist has become a questionable place to market property listings (or to shop for them).
- Cash required on first viewing with promised refund if no offer is made.
If you're asked to pay up front in order to view a property listing, be very suspicious.
- Request to wire funds before seeing the property.
Wire transfer fraud involving real estate closings has recently become a real problem in our state of Wisconsin. You may read about those recent developments on the WRA (Wisconsin Realtors Association) website. Hackers are even gaining unauthorized access to brokerage and title company websites, sending phony bank wire instructions and diverting closing funds to their own bank accounts.
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