In today’s real estate landscape, the excitement of buying or selling a home can be quickly overshadowed by a growing threat—fraud. From fake property listings to sophisticated wire scams, fraudsters have found new ways to exploit the fast-paced nature of the housing market. And as real estate professionals on the front lines, we’re seeing these schemes unfold in ways that both shock and frustrate us.
One of the most common issues we encounter stems from inaccurate information or property details on major listing websites like Zillow and Realtor.com. While these platforms serve as a go-to resource for many buyers, they’re often lagging behind the primary source of information – the local Multiple Listing Service (MLS). Sometimes properties shown as actively for sale on these sites may already be under contract, or worse, actually sold and closed. In other instances, basic facts like square footage, or even bedroom and bathroom counts, can be outdated or inaccurate.
What’s behind this? These sites aggregate data from thousands of MLS systems across the country in addition to other data sources. In doing so, due to their complexity, they can sometimes sacrifice precision due to demands on data-management. This can lead to buyers wasting valuable time as they rely on faulty or dated information about properties displayed on those sites.
Beyond these data discrepancies lies a more insidious threat: fake listings. Scammers have increasingly targeted vacant land or undeveloped home sites. The scheme is simple but dangerous: a fraudster poses as the property owner, contacts an agent, and lists the land for sale. Because the property is vacant, there’s no need for an in-person meeting. The listing goes live, a buyer expresses interest, and sometimes, the deal goes as far as contract and closing proceeds before anyone realizes it’s a scam.
In response, our local MLS has begun issuing fraud alerts to help agents spot suspicious listings, especially on vacant land. And some counties, like Beaufort, offer a free property monitoring service that alerts landowners to any changes or activity involving their parcels. If your county doesn’t offer such a program, having a trusted local real estate professional keep tabs on your property can offer similar peace of mind.
Then there’s wire fraud, a crime that hits hardest at the moment when emotions are high, and buyers are most vulnerable. Here’s how it works: scammers monitor public posts or social media announcements that mention upcoming home purchases. Then they launch phishing attacks to infiltrate email accounts involved in the transaction. Once inside, they mimic communication from attorneys or agents and send fake wiring instructions at the exact moment funds are due.
The result? Buyers unwittingly transfer large sums of money, often their entire down payment, to fraudulent accounts. It’s a devastating loss, and one that’s difficult to recover.
To prevent this, reputable agents and brokers follow strict protocols. At Collins Group Realty, for example, we never send wiring instructions. Instead, we refer clients directly to the closing attorney and strongly encourage making the phone call to the attorney, ensuring it’s a verified phone number, to confirm any wire information before sending funds.
The golden rule? Trust, but verify. Don’t rely solely on third-party websites. Don’t click on links or act on wiring instructions without confirmation. And don’t assume a professional-sounding voice on the phone or a logo on an email means it’s legitimate.
Scammers are getting smarter, but so can we. By staying informed and working closely with experienced real estate professionals, buyers and sellers can navigate the market safely and confidently. Fraud may be part of the modern landscape, but it doesn’t have to be part of your real estate experience.