Don't Get Scammed

“Don’t get scammed.”

I know you might be tempted to file that advice under “OBVIOUS” or “No kidding,” but I’ve been in the real estate business long enough to tell you: the scammers are out there. And they wouldn’t be if they didn’t think they could get away with it.

Not all “scams” are illegal, either. There are plenty of things I’ve seen over the years that I would consider morally questionable, even if they’d never result in criminal charges.

Now, just to be clear, I’m not talking about real estate agents here.

I know the public perception of our profession isn’t always glowing, and yes, there are bad apples — just like in any business. But licensed real estate professionals are often your safest option.

For one thing, licensed professionals are held to higher legal and ethical standards. We’re expected to know more than the average person, and we’re expected to provide proper disclosure and competent advice to our clients.

Professionals also invest significant time and money into their businesses and education on an ongoing basis. Generally, the long-term rewards of maintaining a good reputation far outweigh the temptation to cut corners for short-term profit and risk losing a license.

Can I promise you that having a REALTOR® involved means you absolutely won’t get scammed? No. Even the best of us don’t have crystal balls or magical lie detectors, and sometimes sellers, buyers, or third parties can fool professionals too. But the odds are generally much better.

On the other hand, once you start dealing with private sellers and unlicensed or uncertified service providers — whether it’s a renovating-and-flipping company, a rent-to-own seller, an untrained home inspector, or direct lenders offering private mortgages — there are far fewer safeguards.

Some of these people may be excellent, both ethically and technically. But where there's no standardized qualification or oversight, it can be difficult to know who you’re dealing with.

If you’re considering any real estate opportunity — whether buying, selling, or investing (or “investing” in quotation marks) — and licensed professionals aren’t involved, my advice is simple: do your homework.

The gold standard is always a referral from someone you trust who has actually done business with them.

Failing that, at minimum, do your research online. Search both the individual’s name and the company name. Look for reviews, complaints, warning signs, and independent information. There are still no guarantees, but doing something is better than doing nothing.

And finally: if your gut tells you something isn’t right, consider listening to it. Sometimes your instincts notice the red flags before your brain catches up.