Common scams

Common scams in real estate can vary widely, but here are some of the most prevalent ones and tips on how to avoid falling victim to them:

1. Rental Scams:

Scammers post fake rental listings online and ask for upfront payment or deposits before you've even seen the property. To avoid this, never wire money or send personal information without verifying the legitimacy of the listing. Always visit the property and meet the landlord in person.

2. Foreclosure Fraud:

Scammers might offer to help you save your home from foreclosure for a fee, but they often don't deliver on their promises. Avoid this by dealing directly with your lender or a reputable housing counselor approved by the U.S. Department of Housing and Urban Development (HUD).

3. Title Fraud:

Scammers forge property deeds to make it appear they own a property. They then take out loans or sell the property, leaving the true owner responsible for the debts. Regularly check property records and consider title insurance to protect against this scam.

4. Flipping Fraud:

Fraudulent "investment" opportunities where scammers promise huge returns on real estate investments. Do your due diligence, research the property and market thoroughly, and be skeptical of promises that sound too good to be true.

5. Mortgage Fraud:

Unscrupulous lenders may deceive borrowers by offering unrealistic or misleading mortgage terms. Always work with reputable lenders, read and understand all loan documents, and be cautious of adjustable-rate mortgages with low introductory rates.

6. Bait-and-Switch:

Agents or sellers may show you a property that looks appealing but is not actually for sale. They then try to steer you toward a different, less desirable property. Always verify the availability of a property and work with licensed, trustworthy real estate professionals.

7. Fake Real Estate Investment Seminars:

Scammers host seminars or workshops claiming to teach you how to get rich in real estate. They often pressure attendees to buy expensive training materials or invest in dubious projects. Research any seminar thoroughly before attending and avoid making impulsive decisions.

8. Online Listing Scams:

Scammers copy legitimate property listings and post them with their own contact information, hoping to get you to send money or personal information. Always verify the authenticity of a listing and contact the original listing agent.

9. Escrow Fraud:

Hackers may impersonate real estate agents or title companies, sending you fake emails with fraudulent wire transfer instructions. Always verify any financial transactions by calling a trusted phone number, not one provided in an email.

10. Overpriced or Undervalued Properties:

Scammers may manipulate property values to either overprice or underprice a property. Research the local market and property values to avoid overpaying or underestimating a property's worth.

Prefer dealing with registered agents with the Zambia Institute of Estate Agents.

To avoid falling victim to these scams, always prioritize thorough research, work with reputable professionals, and trust your instincts. If something seems too good to be true or if you feel pressured into making quick decisions, take a step back and seek advice from trusted sources before proceeding.