Buying a house comes with a lot of pressure, stress, and a load of uncertainties. In fact, one study determined that 40% of Americans agreed that purchasing a home was the most stressful event of their lives. Even worse, scammers prey on buyers and renters when they’re looking for a home. Follow these 7 tips to spot and avoid being duped by a housing scam.

1. Rental Scams

Rental scams have spiked in recent years. In fact, the FBI reports that in 2021, rental scams had increased 64% from the previous year, costing renters in America over $350,328,166. Scammers post photos of properties for rent, without actually owning or having access to these homes. To avoid this type of housing scam, always walk through the home, or at the very least, schedule a virtual walk-through, where the landlord shows you the inside of the home in a real-time video.

2. Real Estate Wire Fraud

According to Internet Crime Report from the FBI, real estate wire fraud is one of the most prevalent cybercrimes in the US. They estimate that about 13,638 people were victims of this crime in 2020, which was a 17% increase from the previous year. This type of fraud involves a scammer who creates a phone number, website, or email that looks very similar to your lender’s, but one character is different. They’ll ask you to wire your money to their website while pretending to be your lender. In order to avoid this costly mistake, always verify with a live person at your lending company that you’re wiring money to the correct address.

3. Loan Flipping And Predatory Lenders

The Center For Responsible Lending found estimates that predatory lending of all kinds costs American borrowers $25 billion each year. In the housing market, predators target elderly and vulnerable people by persuading them to refinance their mortgages over and over again.

To avoid this type of scam, don’t do business with a company that’s actively seeking you out, and if you recently refinanced, it’s typically not wise to do so again. Most importantly, always work with a lender that you know and trust.

4. Shady Movers

Moving companies scam homeowners by quoting a price and then either quoting a much higher one when they arrive or by ghosting you once you’ve made a deposit.

MoveRescue offers resources for homeowners to utilize in order to avoid these scams. It’s also a good idea to check the moving company’s Better Business Bureau profile, along with their accreditation with the Federal Motor Carrier Safety Administration. Most importantly, never pay more than a small deposit ahead of time, and get that initial quote in writing.

5. Foreclosure Relief

In February 2023 alone, lenders repossessed 3,831 properties in the USA, which is a 45% increase from the same month last year. When homes are in preforeclosure, scammers pounce, by offering reduced monthly mortgage payments for a large fee. Unfortunately, these claims leave desperate homeowners in worse financial conditions. Instead, always work with your lending company, even if you’re afraid. Often, they’ll work with homeowners who are willing to work with them.

6. Home Inspection Scams

Home inspections are incredibly important for the safety and peace of mind of potential buyers. They’re also necessary for lenders to ensure that the home is being sold at a fair price. Scammers pose as home inspectors while overlooking red flags that could be major problems with the home’s integrity.

To avoid this scam, attend the inspection, ask questions, and make sure the inspector accesses every part of the home. It’s also important to look over the report yourself when it’s finished.

7. Title and Deed Scams

People who own rental properties and vacation properties are especially at risk of title and deed scams. In these instances, scammers attempt to transfer the ownership of a property without the owner’s knowledge. This results in the victim losing his or her home, and obtaining it again can be very expensive. If you own a property that you don’t oversee, pay close attention to your credit score and bills, and if something changes, take action immediately.

Scammers will always be lurking in the shadows, in search of their next victims in the real estate realm. By remaining aware and knowledgeable about these 7 scams, you can avoid falling prey to their schemes.