Real Estate Scams to Watch Out For—and How to Protect Yourself
When you're buying or selling a home, you're not just dealing with one of life’s biggest financial decisions — you’re also navigating a landscape that can, unfortunately, attract scammers. From fake listings to wire fraud, real estate scams are more common than many people realize. And they can happen to anyone.
Whether you're a first-time buyer, a seasoned investor or preparing to list your home, being informed is your best defense. In this guide, we’ll break down the most common real estate scams, explain how they work, and most importantly, share practical ways to protect yourself.
1. Wire Fraud: The Silent, Costly Threat
What it is: Wire fraud is one of the most dangerous and financially devastating real estate scams. It typically happens during the closing process when a scammer intercepts communication between a buyer and escrow or title company. Using spoofed email addresses or hacked accounts, scammers send fake wiring instructions, tricking buyers into transferring their down payment or closing funds to a fraudulent account.
How to spot it:
You receive urgent, last-minute changes to wiring instructions.
The email address looks slightly off (e.g., one letter changed).
You’re pressured to act quickly without verifying details.
How to protect yourself:
Always verify wire instructions over the phone with a known contact.
Never use phone numbers provided in suspicious emails—use verified numbers from your agent or escrow officer.
Be cautious with email links or attachments, especially near closing.
2. Fake Rental Listings: Too Good to Be True
What it is: Scammers steal photos and details from legitimate home listings and repost them as rentals—often at below-market prices. They usually ask for a deposit or application fee upfront to “secure” the rental, even though they don’t own the property.
How to spot it:
The listing has poor grammar or vague descriptions.
The “landlord” refuses to meet in person or show the property.
You’re asked to wire money or send a prepaid card for payment.
How to protect yourself:
Use reputable rental platforms and cross-check listings.
Never send money without seeing the property and signing a lease.
Research the property address to make sure it's not already listed for sale elsewhere.
3. Deed Theft and Title Fraud: When Scammers Steal Your Home
What it is: Deed fraud involves someone forging your identity to transfer the title of your property into their name. They may then try to take out loans against the property or even sell it without your knowledge.
How to spot it:
You stop receiving property tax bills or other official notices.
You get unexpected foreclosure notices or lien claims.
A title search reveals changes you didn’t authorize.
How to protect yourself:
Regularly check your property’s public records with your county recorder’s office.
Consider enrolling in a title monitoring service.
If your home is paid off or vacant, be especially vigilant—these properties are common targets.
4. Foreclosure Rescue Scams: Preying on the Vulnerable
What it is: Scammers target homeowners facing foreclosure, offering to “rescue” them in exchange for upfront fees or the transfer of the home’s title. These fake rescuers may promise to negotiate with your lender or lease the home back to you, but instead, they vanish with your money or your home.
How to spot it:
The person promises a quick fix or guaranteed results.
You’re asked to transfer your deed or pay fees upfront.
They advise you to stop communicating with your lender.
How to protect yourself:
Always work directly with your lender or a HUD-approved housing counselor.
Never sign anything without fully understanding it or consulting an attorney.
Avoid anyone who promises outcomes that seem too good to be true.
5. Unlicensed Agents or Investors: Wolves in Disguise
What it is: Some scammers pose as real estate agents or “cash buyers,” offering to help you buy or sell quickly. In reality, they may lack the proper credentials or worse, be trying to lock you into unfair contracts that strip away your rights or equity.
How to spot it:
They can’t produce a valid real estate license.
They pressure you to sign paperwork without review.
They avoid regulated professionals like escrow officers or attorneys.
How to protect yourself:
Verify licenses with your state’s real estate commission or DRE.
Always involve legitimate third parties like title companies or attorneys.
Be wary of any offer that skips essential steps in the buying or selling process.
6. Fake Escrow Companies and Websites
What it is: Some scammers go as far as creating fake escrow companies or websites that mimic real ones. They may send official-looking emails or direct you to a phony site to collect your sensitive personal and financial information.
How to spot it:
You’re asked to log in to a website that looks off or isn’t secure (http instead of https).
The domain name doesn’t match the company name exactly.
You’re sent to a site via a suspicious link or QR code.
How to protect yourself:
Search for the escrow company independently—don’t rely on email links.
Confirm legitimacy through your agent or lender.
Use verified secure portals when uploading sensitive documents.
Buying or selling real estate can be an exciting milestone — but it’s also a time when large sums of money and sensitive data are on the line. That makes it a prime target for scammers looking to exploit any vulnerability.
Here’s how to stay safe:
Stay skeptical of anything that feels rushed, vague, or too good to be true.
Always double-check credentials, wiring instructions, and legal documents with trusted professionals.
Lean on your real estate agent, title company, and lender as partners in due diligence.
And finally, knowledge is power. The more you understand how these scams work, the better equipped you’ll be to recognize red flags and shut them down before they impact you. Stay alert, stay informed and don’t let fraud steal your peace of mind during one of life’s biggest moments.