07/19/2024
Searching for a new home? Here are some big tips to help you avoid rental scams, application fees for homes that don’t exist, protect your privacy, and avoid losing large amounts to hold a house that doesn’t exist.
A good indication of a scam is when the advertiser uses the word “kindly” in their action request.
Kindly , fill out this application
Kindly, submit your phone number
Kindly, request more info on this link.
This is an outdated use of the word kindly and though technically a correct usage, it indicates someone who isn’t proficient at conversational English even though their English grammar is impeccable. This can also indicate content generated by AI.
Also, a home that is grossly underpriced is an indication of, at best fraudulent advertising and at worst, fits a con strategy.
Another red flag…”Rent to Own” In 30+ years in the real estate/rental industry, I have never seen a true rent to own home unless it was between family members. Even then, I have never seen the rent be grossly under priced unless it was between parents and children. Rent to own is really a term that would apply when you are renting a home under a standard lease situation. Then a renter is generally expected to pay an amount on top of the actual leased amount and then the extra payment would accrue for a down payment, which would then be used at a future date when a sales contract would come into play. The renter would still need to acquire a mortgage to actually buy the house. If you can’t do that by a specific date, due to credit issues or not enough money saved or even if you change your mind, then you forfeit the money you’ve been paying toward this fund. This in it’s legitimate circumstance would be called a lease with an option to buy. Not always a scam but a renter needs to be very careful with regard to dates and down payment requirements and also personal details like: credit score, time on the job, verification of income, recent bancruptcy status, etc. These are usually the very reason a renter can’t get a loan in the present and if the tenant doesn’t have the means or self discipline to overcome these obstacles then you will likely lose any money the seller is holding for the purchase.
Sometimes an owner wil agree to write a contract to sell you the home and “carry the mortgage”. This is common when interest rates are very high and they’re struggling to sell the house. Another example might be they want the investment income without the headache of repairs and upkeep cost. This can be a good opportunity for people who don’t qualify for a bank loan for reasons like too much debt or a bankruptcy. These types of sales generally come with a requirement for at least 20-40% down payment. These are not rent to own homes.
If it’s sounds too good to be true it’s most likely too good to be true!!!
What are some red flags you have seen while home searching?
