Buying a house is exciting, but with all the paperwork and moving parts, it can also feel a little overwhelming. Throw in the possibility of getting scammed, and it's enough to send shivers down your spine! But fear not, future homeowner! This blog is here to shed some light on the shady side of real estate and give you the knowledge to protect yourself.

What is Wire Fraud and Why is Real Estate a Target?

Wire fraud is when someone tricks you into sending money electronically (usually via wire transfer) to a fraudulent account. In real estate, this often happens around closing time, when large sums of money are on the move. Since real estate transactions involve multiple parties and lots of communication, scammers see an opportunity to exploit vulnerabilities. They might hack into someone's email or create fake accounts to impersonate someone you trust, like your realtor or lender.

Common Scams to Watch Out For

• Phishing Emails: These emails appear to be from a legitimate source, like your title company or closing attorney. They often create a sense of urgency, claiming there's been a last-minute change in wiring instructions. Never send money based on information received solely through email!

• Spoofed Phone Numbers: Scammers can make their caller ID display a phone number that looks like it belongs to your realtor, lender, or title company. Be wary of unexpected calls with urgent requests for wire transfers. Always call back using a verified number you know is legitimate.

• Fake Websites: Deceptive websites can be designed to look like the real website of your closing agent or lender. Double-check the URL before entering any personal information or logging in.

How to be a Savvy Homebuyer (or Seller)

• Communication is Key: Maintain open communication with your realtor, lender, and title company. Confirm all contact information directly with them, not just from what shows up in your email.

• Beware of Last-Minute Changes: Be wary of any last-minute changes to wiring instructions, especially if they come through email. Always confirm any changes in person or over the phone using a verified number.

• Never Wire Money Based on Email: This is a golden rule! Wiring instructions should only come from a trusted source, like your closing agent, after a face-to-face meeting or a phone call using a verified number.

• Use Secure Communication: When sending emails with sensitive information, consider using a password-protected email service.

• Trust Your Gut: If something feels off about a request, don't be afraid to stop and ask questions. It's better to be safe than sorry!

Bonus Tip: Consider using a wire transfer service offered by your bank. These services often have additional security measures in place to prevent fraud.

By staying informed and being cautious, you can significantly reduce your risk of falling victim to wire fraud or scams during your real estate transaction. Don't let the excitement of buying a house cloud your judgment. By following these simple tips, you can protect your hard-earned money and ensure a smooth closing experience

After years in advertising and marketing, living and working for companies in Georgia, North Carolina, and China, I decided to acquire my real estate license so I can use my established marketing and communications skills to help others and work for myself.

For many people, buying and/or selling their home is one of the most important and most stressful times of their lives. Having an advocate and an agent who has experienced years of corporate marketing, managing teams through challenging projects with tight deadlines, and negotiating complex deals - will aid in the home buying or selling process.

If you or anyone you know is interested in real estate investment, a personal real estate search, or property management, please reach out to me directly - I would love to provide my services to help find your goal property as soon as possible.

David “Bo” Hardegree, NC Real Estate Broker
Espin Realty
[email protected]
704-748-0958