Purchasing a new home can be overwhelming and even kind of scary, especially when you consider how common real estate scams are. However, scams in the real estate business aren’t always ponzi schemes. Some scams come in the form of misleading information that can be just as damaging to the buyer as any other fraudulent crime. Fortunately, working with an exclusive buyer’s agent will ensure that you’re protected from such cons and deceptions. Take a look at some of the real estate scams you should look out for and how you can avoid them.
#1 Calling the Number on the “For Sale” Sign
There’s a common misconception that calling the number listed on the “For Sale” sign in front of an available house is a good idea. Sadly though, this idea may be met with some disappointment. That’s because the number listed on that sign is the number for the seller’s agent. Often the selling agent will work with the seller’s best interests in mind, not the buyer’s. This can leave buyer’s without proper representation and puts them in a vulnerable position to be taken advantage of. Instead, you should contact an exclusive buyer’s agent before making inquiries on a home that only has the selling agent’s information listed. An exclusive buyer’s agent will be able to work with the selling agent to make an agreement that adequately reflects your wants and needs.
#2 Buying a Home with $0
Some buyers are led to believe that they can purchase a home without having to spend any money out-of-pocket. As nice as this would be, it’s unfortunately, not true. Even if you’re able to get a loan without having to place a down payment or pay for closing costs (which is unheard of and claims such as this should not be trusted), there will always be other costs that need to be paid. These might consist of home appraisals and inspections, moving costs, or utilities costs. So, be wary of offers such as these, and if you’re still unsure, contact an exclusive buyer’s agent for proper guidance.
#3 Not Paying for Your Own Appraisals or Inspections
Typically, home appraisals and inspections are out-of-pocket expenses that the buyer is responsible for. And while it may seem like a nice gesture for the selling party to offer to pay for these, as a buyer you want to be cautious of situations like this. For example, when the seller decides to pay for inspections or an appraisal, they have the ability to choose who performs these assessments. But, if you, the buyer, pays for these expenses, you’re the one that decides who the inspectors are and whom the reports “belong” to. In order to protect yourself, you should never assume that whoever else might offer to pay for these services has your best interest in mind. If you are getting a loan, the bank will need their own appraisal from an uninterested third party. Without it, they won’t lend you money.
#4 “Bad Credit or No Credit” Means You Can’t Buy a House
Another common misconception about home buying is that having bad credit or no credit means you can’t buy a house. This is not always true and it can quickly deter potential buyers from seeking more information. Having poor credit or not enough credit history can usually be fixed over time. So, if you’re interested in purchasing a home but think you won’t qualify due to your credit, be sure to connect with a buyer’s agent first. They’re able to better assess your circumstances and guide you in how to improve your chances of being approved for a home loan.
#5 Being Told You Need to Sign Immediately for a Home
Sometimes when home buyer’s start to show interest in a home, the selling agent will tell them “if you want it, you’ll have to act fast because we have a lot of other interested buyers.” This is a tactic sellers use to get you to quickly sign papers or hand over a check for a home before you get all of the information about the house. Then, you later find several problems with the home but are already locked into an “As-Is” contract and have no way out. Being rushed into a huge decision like this is a telltale sign that something seems off. Any genuine real estate transaction will adhere to certain guidelines and timelines, and you should never feel rushed or pressured into signing paperwork prematurely.
Connect with an Exclusive Buyer’s Agent at Remaklus Realty
Buying a home in Reno is easier than ever with Remaklus Realty. Remaklus Realty is a group of exclusive buyer’s agents that will only work for you, the buyer. Our biggest goal is to act in the best interest of the buyer and we work to ensure that they are fairly represented. We will be there every step of the way, from market research all the way to the closing process. Connect with us today to get started on finding the perfect home!