When Real Estate Scams Get Personal
Let’s talk a little bit about scams that are happening today. One of my former colleagues from when I practiced real estate full-time reached out to me with a concerning story. It involved a case of a real estate scam that sounded eerily familiar to something I experienced years ago, during a market very much like today. Homes were sitting longer on the market, and some sellers began rethinking their plans to move.
I had listed a home for sale early in the summer. After three months and no sale, the sellers decided not to move forward. Their kids were starting school, and it just didn’t feel like the right time. So they took the home off the market, and we parted ways on good terms. About two weeks later, they contacted me, panicked and distraught.
The Knock at the Door
A few days after they removed the home from the market, someone knocked on their door. It was a supposed homebuyer claiming they had viewed the house just before it was delisted. The buyers said they were heartbroken to see the home come off the market and wanted to make an offer. It sounded perfect. They were offering full price. They said they did not need a home inspection. They were paying cash and could close quickly.
It seemed like the dream scenario. The sellers were thrilled. They didn’t call me or their attorney. They just went forward and didn’t for a second think this was a real estate scam. They signed the contract and began making plans to move into a family home that had been waiting for them.
The Red Flags
The next day, the buyers came back with a certified check for the earnest money deposit. That check, oddly, was made out to the sellers directly. Most earnest money checks are made payable to an escrow company, not to the individual seller. But the sellers were unaware of this nuance and assumed it was fine. Then came the bait-and-switch.
The buyer apologized. The check was made out for $25,000 instead of $10,000. They politely asked the sellers to write a personal check back to them for the difference. The sellers complied, handing over a personal check for $15,000.
The Scam Unfolds
About a week later, their bank informed them that the certified check did not clear. It was fake. Alarmed, they called the buyer. No answer. They emailed. No response. They visited the address the buyer had given. No one by that name lived there. They even called the school where one of the buyers said they worked. No such employee existed. They finally faced the truth they they were victim to a real estate scam.
The check they wrote for $15,000? It had already been cashed in person at a local branch. The sellers filed a police report, but there was little law enforcement could do with so few leads.
The Emotional Fallout
Beyond the financial loss, this experience caused a deep emotional toll. The family had already packed their belongings and prepared to move. The rug was pulled out from under them. They felt betrayed, rattled, and violated.
The following spring, we listed the home again. This time, it sold. In fact, they got $25,000 more than they were asking the year before. While it helped recover the money, the emotional impact lasted much longer.
Stay Alert and Ask for Help
This is a cautionary tale. If something feels too good to be true, it probably is. Even if you are no longer actively working with a real estate agent, reach out. I would have walked them through the steps, even without compensation, just to ensure they stayed safe.
If you are buying or selling a home, do not go it alone. I have strong relationships with real estate agents all across the country. If you ever need advice or a trustworthy connection, please reach out. I am happy to make the introduction and be your sounding board along the way.
