I've seen plenty of real estate scams over the years, but this one was new to me. A homeowner thinking about listing with Swan Realty brought me an unsolicited offer he received from a company in New York.
He wanted to know if it was legit. Here's what I found.
The Offer Looked Great
On the surface, it was a solid offer. Fair price, reasonable terms, the buyer pays all the closing costs, and a short 5-day due diligence period. If you skimmed it, you'd probably sign it.
Then I Got to Paragraph 9
Paragraph 9 required the seller to send 0.5% of the purchase price for "administrative fees" within 2 business days of signing. On this property, that came to $1,300.
Think about that. The seller is paying the buyer to buy the house. That's backwards.
How the Scam Works
You send the money thinking you have a deal. But remember that 5-day due diligence period? Anytime within those 5 days, they terminate the contract and keep your money. And because you signed it, you agreed to it.
How to Protect Yourself
If an unsolicited offer asks you to send money up front, walk away. Read every paragraph, or have someone you trust read it, before you sign anything. And if you want to know what your home is really worth, request a free market analysis from someone local.
A great-looking offer only matters if the money flows the right direction. If something feels off, get it checked before you sign.
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Have questions or want to learn more? Give us a call at 575-613-4243. We're happy to help.
Rob Swan | Qualifying Broker | Swan Realty Inc.
