Buying a home is one of the biggest financial decisions many clients make, and scammers increasingly target buyers throughout the process. From fake listings to wire fraud, real estate scams are evolving and disproportionately affect first-time buyers. Losses from real estate wire fraud alone have increased more than fiftyfold over the past decade, reaching hundreds of millions of dollars annually.
At Bank of America, protecting our clients' financial well-being is a top priority. These tips can help you spot common real estate scams and take simple, proactive steps to protect your money, personal information, and peace of mind during the homebuying journey.
Help Protect Your Funds: Always Confirm Wiring Instructions by Phone
Scammers send emails that look legitimate and request last-minute changes to wire details.
Tip: Always verify by calling a trusted phone number for our company or your real estate agent - not the one in the message - even if it looks legitimate. A quick phone call can help protect your money.
Watch for Fake Property Listings
Scammers sometimes copy real listings or advertise homes at unusually low prices to pressure buyers into sending upfront deposits.
Tip: Only send money after you've verified the listing on a reputable real estate website and viewed the property in person. Legitimate sellers and agents will support this step.
Use Trusted, Reputable Lenders
Mortgage fraud involving fake lenders or manipulated loan terms is on the rise. Some scammers collect "processing fees" and disappear.
Tip: Use your bank or a lender recommended by a verified real estate professional. Avoid lenders requiring upfront fees before any paperwork is complete.
Verify Your Home Inspector
In some cases, inspection reports may overlook or downplay property issues. If anything appears unclear, inconsistent, or incomplete, it's reasonable to ask questions or consider an independent inspection.
Tip:
Choose an inspector independently: Don't rely solely on seller suggestions. Attend the inspection whenever possible.
Be Cautious of Requests to Return "Overpayments"
Some scammers send a fake cashier's check for more than the agreed amount and then ask you to wire the difference. Even if funds appear in your account, the check may later be reversed, leaving you responsible for the money sent back. (Known as the "wire back to buyer" scam)
Tip:
Never send funds until your bank confirms the payment is real and irreversible.
Deed Fraud
Deed fraud occurs when someone illegally changes the ownership of your home without your knowledge. Older adults with mortgage free properties are often targeted.
Tip:
Check your property records from time to time and watch out for unexpected mail or ownership changes to help you spot problems early.
Check the Security Center often for more tips that help protect you.
