Craigslist Real Estate Scams

HAROLD PENNER: Fresno Real Estate Market Analysis

Craigslist Real Estate Scams

As with any form of free online advertising, Craigslist.org provides a perfect vehicle for scammers to prey upon people searching for real estate. These scams are now taking on a disturbing level of sophistication. Scammers are now copying descriptions and pictures of active homes for sale from public real estate sites such as realtor.com, trulia.com, and others. Those homes are then re-posted as rental properties on Craigslist for low monthly rent. The actual name of the seller is used (most likely obtained by public tax assessor records) but with a false email address.

Recently, a client was shocked to learn that his home had been posted for rent on Craigslist when he discovered prospective renters exploring his backyard. The email explained the presence of the for sale sign by stating that the house had been pulled off the market and the sign would be taken down shortly. My office also received a frantic call from a renter who wired a large rental deposit for this home to the scammer.

Here are some ways to avoid being scammed:

• Meet prospective landlord in person - As with the case above, the scammer will typically state they live or are visiting Africa or a European country and are unable to meet in person.
• Confirm that the home is not for sale - Visit a real estate site (zillow.com, trulia.com, etc.) to check if the supposed rental property is actually for sale. You can also go a step further and contact the real estate agent on the listing to confirm that the home is for sale and not for rent.
• Tour Inside of Home - Driving by and confirming the location, neighborhood, etc is not sufficient. Arrange to view the interior of the home prior to any money exchange.
• Extremely Low Price - If the price appears too good to be true, it probably is. Renters eager to take advantage of a great deal let down their guard. Scammers will also take legitimate homes listed for rent on Craigslist, slash the prices and repost the same home. Be wary of low rental prices and take the above precautions.

Here are some helpful links:

http://www.craigslist.org/about/scams

http://en.wikipedia.org/wiki/Advance-fee_fraud

http://www.rentvine.com/tools/rentalscamquiz/

MAY MARKET STATISTICS* - Fresno and Madera Counties

• Average Price of Sold Homes in April 2009 vs. 2010 - $155,311 vs. $172,004 (11% Increase)
• Sold Homes in April 2009 vs. 2010 -1091 vs. 936 (14% Decrease)
• # of Foreclosures and Pre-Foreclosures Sold in April 2009 vs. 2010 - 801 vs. 613 (24% Decrease)

• Avg. Loan Percentage Rate in May 2010 - 4.71% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

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