How to Identify Common Real Estate Scams in Your Market

12 October 2025

Buying or selling a home is exciting, nerve-wracking, and—let’s be honest—a bit stressful. But imagine finding your dream home, only to realize later that you’ve been scammed. Yikes!

Unfortunately, real estate scams are as real as that nosy neighbor who always knows what you had for dinner (seriously, how do they know?). The good news? If you know what to look for, you can avoid falling into the trap.

Let’s break down some of the most common real estate scams and how you can spot them before they take a bite out of your wallet.

1. The Phantom Listing Scam

Ever scrolled through listings and stumbled upon a deal that seemed too good to be true? Spoiler alert: It probably was.

How It Works

Scammers post fake rental or sales listings using pictures stolen from legitimate real estate sites. They lure in buyers and renters with below-market prices and a sob story about how they need someone trustworthy to move in ASAP.

Red Flags

- The price is significantly lower than comparable listings.
- The "seller" or "landlord" refuses to meet in person.
- You're pressured to send money before even seeing the property.

How to Avoid It

Always verify listings through reputable real estate platforms. If a deal looks too good to be true, do your research before making any decisions.

2. Title Fraud (AKA "Oops, Someone Stole Your Home")

Yes, this is a thing. Imagine waking up one day to find out your home now legally belongs to someone else. Nightmare fuel, right?

How It Works

Scammers steal your identity, forge documents, and transfer your property title into their name. Then, they either take out loans against your home or sell it to an unsuspecting buyer.

Red Flags

- Unexpected notices from financial institutions about loans you never took.
- Your property records suddenly show a new owner (time to panic—just kidding, but seriously, act fast).

How to Avoid It

- Regularly check your property records with your local land registry.
- Consider title insurance to protect against fraudulent transfers.
- Be cautious about sharing personal information.

3. The Escrow Wire Fraud Scam

If you ever get an email instructing you to wire your down payment immediately, STOP. This scam has ruined more dreams than a missed final exam (or your mom’s dial-up internet in the ‘90s).

How It Works

Hackers intercept emails between buyers and legitimate real estate agents, then send fake wiring instructions. The result? Your money ends up in a scammer’s account, never to be seen again.

Red Flags

- You receive last-minute changes to wiring instructions.
- The email address looks almost legit but has minor discrepancies (like one letter off).
- There’s a sense of urgency—“Send the money NOW, or you’ll lose the house!”

How to Avoid It

Always confirm wiring details directly with your agent or escrow officer over the phone. (And no, don’t call the number in the suspicious email—look it up yourself.)

4. The Foreclosure Relief Scam

When homeowners fall behind on mortgage payments, scammers swoop in like vultures, offering “help” while actually making things much, much worse.

How It Works

A scammer pretends to be a foreclosure expert, promising to negotiate with your lender to save your home. The catch? They demand upfront fees, then disappear into the abyss with your money.

Red Flags

- They ask for large fees before providing any services.
- They pressure you to sign documents without explanation.
- They claim they can 100% stop foreclosure (no one can guarantee that).

How to Avoid It

If you're struggling with mortgage payments, work directly with your lender or a HUD-approved housing counselor. Don’t trust anyone who promises a magic fix.

5. Rental Scams (AKA “The Fake Landlord”)

Moving into a new rental should be exciting, not a financial horror story. Unfortunately, scammers love to prey on eager renters.

How It Works

A scammer pretends to be a landlord and asks for a large deposit upfront (often before you’ve even seen the place). Sometimes, they don’t even own the property—they just make a quick buck and vanish.

Red Flags

- The landlord is “out of town” and can’t meet you.
- They want you to wire money before seeing the unit.
- The lease has vague or missing details.

How to Avoid It

Never send money without verifying ownership. Always insist on seeing the property and meeting the landlord in person.

6. The “We Buy Houses for Cash” Scam

Sure, selling your home quickly sounds appealing, but some “cash buyers” are actually scammers looking to take advantage of desperate sellers.

How It Works

These buyers promise a fast, hassle-free sale but offer significantly less than market value. Worse, some shady companies charge hidden fees or leave sellers without a home and without their money.

Red Flags

- They pressure you to make an immediate decision.
- They refuse to provide proof of funds.
- The contract is unclear or one-sided.

How to Avoid It

Work with reputable real estate professionals. If the deal feels rushed, take a step back and do your homework.

7. Bait-and-Switch Listing Scam

Imagine walking into an open house advertised as a “stunning 3-bed, 2-bath dream home,” only to find… a rundown shack with one working lightbulb.

How It Works

Agents or sellers lure buyers with appealing listings that don’t actually exist. When you show interest, they steer you toward a different, inferior property—one that’s conveniently still available.

Red Flags

- The listing disappears, but you're offered a “similar” property.
- The advertised price was way too good.
- You feel pressured to make a quick decision.

How to Avoid It

Check multiple sources before committing to a showing. And if something feels off, trust your gut.

Final Thoughts: Stay Smart, Stay Safe

Real estate scams aren’t just annoying—they can wreck your finances and peace of mind. But here’s the good news: By staying informed and spotting red flags early, you can avoid becoming another victim.

So, before you send any money, sign any documents, or trust someone who sounds too nice, take a step back. Do your research, ask questions, and always verify the details.

Now, go out there and find that dream home—without the nightmares.