The real estate industry can be a minefield for buyers, sellers, agents, mortgage brokers, etc., of a property. Everyone in the property industry can be a target of online real estate scams as the business involves huge money transactions.
Therefore, there is a need to educate property investors on home safety and the ins and outs of the real estate business. Especially those interested in the foreign residential property market. This article details how to avoid real estate scams in Australia.
Common real estate scams in 2023
Payment redirection scams
Most businesses, including agencies in Australia, keep track of their clients via emails through which they send updates, redirect links, etc. The scammer hacks into verified databases and legitimate emails like those of real estate agents, security offices, etc., to get access to your information.
The scammers may continue with the hacked email or use a new one almost identical to the agency. They can affect this by switching out or inserting a letter, symbol or number.
Hence, you can also refer to them as business email compromise scams. Property settlement scams are a subset of this scam type.
A telltale sign of this type of property scam is a real estate agent who only communicates via messages or email. It is a red flag if they insist on only a payment method of their choosing.
How to avoid payment redirection scams
- Always confirm by call if an important mail from your real estate office was sent.
- Always double-check the sender’s email address if you feel something is off. Ensure it matches the official agency’s email 100%.
- Before making a payment, confirm bank details with your real estate agent’s office.
- Confirm the identity of the agent transacting with you with their affiliated licensed office.
- Have as many face-to-face meetings/dealings as possible.
- Be aware of online fraud and do not accept or give cash payments online.
- Listings scams
Housing scams
There have been cases of unsuspecting property buyers scammed into buying houses that owners do not intend to sell.
The scammers deceive buyers by listing fake properties on sites with very inviting bargains. These are frequently vacation homes, properties whose owners are out of town, etc.
Perhaps the biggest reason you should start suspecting this is when the seller is shady about giving house specifications or showing you the property in detail.
How to avoid this scam housing scams
- Check if the site’s listing is reputable. Many scammers create duplicate sites that mimic the originals to list these properties.
- The offer is too good to be true. Of course, when buying a house, we look to get the cheapest and most affordable. However, be alert to those that seem too good of a bargain for one reason or another.
- Make sure to inspect each property before choosing.
- Apart from duplicate sites, some property scams fake listings on real estate sites with bot accounts. Thus, when browsing through reputable sites, we recommend you check the lister’s profile.
- Only use sites that offer data security. These fish out bot accounts and protect your data.
- The best way to avoid this type of real estate scam is to visit a physical real estate office and ensure it is licensed.
- Don’t pay money before inspecting a listed property.
- Phishing scams
Phishing
Phishing is increasingly popular as more estate agencies create online databases. With phishing, scammers search for your data, especially contact details from online sites.
These data are your confidential information like login details, payment details, email, passwords, etc.
Scammers may also hack into emails of your real estate agency, for example, to find any possible confidential information on you.
Telltale signs are strange calls from random buyers or agencies seeking your details for deposit purposes.
You could also receive text messages with shady, fraudulent content like links. Be wary of emails or messages asking you to change payment details.
How to avoid phishing
- Do not share confidential information like bank account details with anyone via messages, email, online, or phone calls.
- Do not give any information to unknown numbers or return their calls without confirming it with the official numbers listed.
- Confirm all monetary transactions with the office before undertaking property investment.
- Diversify your passwords and other login details across sites that require confidential information like your bank/card details, etc.
- Do not click on odd texts, links, or emails. If it’s from an agent or buyer you have worked with before, it is better to call to confirm first.
- Only input sensitive information in sites that are vetted.
- Only use sites that offer data security. These fish out bot accounts and protect your data.
Conclusion: how to avoid real estate scams in Australia
The property industry is a booming opportunity for scammers as it involves the transfer of large amounts of money between parties.
While impossible to avoid entirely, there are several signs you can note that will help you avoid real estate scams.
- Avoid clicking on suspicious links, texts, and emails.
- Always double checking given bank details.
- Inspecting the property before purchasing.
- Being suspicious of bargains that are too good to be true.
- Insist on some face-to-face meetings.
- Working with only licensed agencies.
Whether it’s home decor or buying guides, Soho has all kinds of expert tips to accompany your property journey. And don’t forget to register your match profile on Soho.com.au to get live property match alerts.
