Realty Executives NJ Training
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Realty Executives Exceptional Realtors®
It is a sad fact of contemporary society that some people will do anything to try to cheat another person, and the real estate industry is not exempt. Educating yourself on the types of common real estate hoaxes and scams will help you be more vigilant when trying to purchase or sell a home. Even with consumers’ growing awareness, scams have become more sophisticated and damaging. The housing market bubble crisis in 2008 saw many fraudulent brokers issuing predatory loans to unsuspecting buyers, and when that bubble burst, these same con artists preyed upon individuals facing foreclosure.
According to Forbes, not only have housing scams increased in number, but the cost of getting swindled has risen as well. Some of these scams have resulted in homeowners having their houses flat-out stolen from underneath them, facing bankruptcy, suffering identity theft and damaged credit, and stuck with exorbitant attorney fees.
There are, sadly, numerous types of real estate fraud. Among the most common swindles are:
Rental Scams
Fraudsters will “scrape” a listing, repost it on a different site such as Craigslist, and pretend to be the representative agent. Whereas less experienced con artists will be blatant—asking for an upfront security deposit or their broker fee—more covert, sophisticated scammers will request that you wire funds to “a friend” to prove your ability to pay, and then the con artist will pose as the friend. Another prevalent rental scam is to charge potential clients fake fees for application credit checks. For more information, the Federal Trade Commission website lists rental scam warnings.
Loan Modification Scams
These are particularly prevalent given the ramifications of the recent crisis and that millions of Americans continue to face foreclosure while others are upside down on their existing mortgages. These ruses can take the form of:
Most of these scams start with a cold call and always include a request for upfront fees. In the worst cases, homeowners turn over the deed to their home under the guise of being able to lease it or buy it back in the future.
Mortgage Elimination Scams
These schemes offer borrowers a way out of their mortgage within a short time frame and then charge victims an excessive price for their “service.”
Illegal Flipping
This occurs by purchasing a property and selling it quickly for more than its appraised value, leaving the future buyers financially upside-down from the get-go.
Equity Fraud
One of the more "traditional" schemes, equity fraud occurs when the scammer uses the victim’s identity to refinance a property and then steals the equity.
Equity Skimming
Equity skimming occurs when a buyer convinces a seller to relist his or her house at a very high amount to obtain a larger loan. The buyer then pays the seller the original price and takes off with the remainder of the money. Houses frequently end up in foreclosure as a result.
“Straw Man” Scheme
This involves a con artist using another’s credit history—the “straw man”—to obtain a mortgage and then persuades the victim to sign over the deed in exchange for a small percentage of the sale.
Predatory Lending
These fraudsters prey on the elderly, the desperate, and those without much real estate savvy by promising potential victims loans with no money down and no credit checks; however, the victim ends up having to pay ridiculously high fees and interest and facing foreclosure.
Does your home scream 1985 with paisley wallpaper? Maybe your home still has the original avocado refrigerator from 1973. While there is no shame in living in a home that makes you feel comfortable and happy, it's important to break with the past when selling your Springfield MO home. There are 12 things I believe every home seller should have on their checklist before listing. If you are a frugal person, it's all the better. Most of the strategies for updating a home do not require a lot of money. Simply set aside some time and get to work on making your home a house that a buyer will pay a premium to own.
Working With a Real Estate Agent:
Before spending any money on updates, feel free to contact me, I know the Springfield MO housing market well. Having someone who doesn't have the same emotional attachment to the home provides fresh information about what appeals to buyers and what needs to be changed out.
Getting out the Rakes and Shovels:
Start with the front of your home. It's inexpensive to buy a few colorful annual flowers, weed and mulch the front flower beds. Other ways to improve curb appeal include repainting the entryway door in an enticing color such as red, green or blue. Remember to sweep the front porch or deck every day while listing your home to remove leaves, insects and debris.
Removing All the Clutter:
Inside your home, start by removing clutter. Once you store the clutter in boxes, it gives a better idea of what is left to clean. Once the cleaning commences, focus on grout lines, baseboards covered in dust, dusty ceiling fans and cobwebs in the corners or on lighting fixtures. Also, thoroughly clean the air vents. If any of the cleaning ideas seem foreign, hire a professional cleaning company. If you would like more information on reputable Springfield cleaning companies feel free to reach out and contact me.
Painting With Popular Colors:
After deep cleaning, the next step is to paint the interior walls. Outside, use a pressure washer to clean before painting the trim and doors. For the interior colors, buyers currently appear to favor blue in the bedrooms and bathrooms and gray or beige in the living room. Avoid yellows and orange unless you list during the fall because buyers rarely pay more for earthy colors.
Other items on your home-selling checklist should include the indoor plant check. Buy a few pretty plants and keep them watered. If your home smells like cigarette smoke, an easy trick is to place an air freshener inside the vent so carry the pleasant smell throughout the home. Before staging with updated furniture and décor, lock up any valuables or collectibles you don't want people to see.
You've just had the offer accepted for your first home.
Now it's time to move in and make the place your own. Though if you are like many first-time buyers, you have little or no furniture to fill the rooms.
This means it is time to go shopping, but before you do, here are some money-saving tips:
Know What You Need
Before going to the store, make a list of what you need and establish a budget. This way you don't buy unnecessary pieces that may be hard to return or spend more than you can afford.
Don't Focus on Brand Names
There are hundreds of furniture brands on the market, some of which are better known than others. Don't be afraid to buy a lesser known brand as it often doesn't mean lesser quality, and buying such a brand can save a lot of money.
Buy a Set of Furniture
Buying a set of furniture is basically buying in bulk. When it comes to furnishing living rooms and bedrooms, sets allow you to put together a complete look for less money.
Buy Used Furniture
Shopping at thrift stores, flea markets, and garage sales is a really good way to find bargains. Pieces are often sold for pennies on the dollar, and if you like DIY projects, buying used furniture can allow you to bring out your creativity. Just be sure to look closely for scratches or dents that you may not be able to repair or hide.
