Be careful out there
Scammers are everywhere. We have warned you here before about equity skimming scams, rent back-sell back scams, mortgage scams and phony Realtor scams. Last week we were again reminded of the need for vigilance among our own. Scammers not only attempt to victimize property owners, but Realtors as well.
We are not talking about the typical person who pretends to want to sell their property and takes advantage of the agent's investments in time, resources and research to get a free valuation so they can sell their property themselves. Nor are we talking of those who delight in taking up an agent's valuable time, posing as a buyer, to get a free guided tour of the area and maybe a meal to boot. Any Realtor should be keen to these commonplace ploys and be prepared to say, "no" to these obvious time bandits.
The scam we encountered last week was a bit more sophisticated. The scammer uses a third party real estate site, like "Zillow" or "Trulia" to make contact with the agent. This, as if they will gain credibility by using these branded sites, as opposed to contacting the agent directly through the agent's own company site. The initial message seems innocuous enough and gains some credibility by giving a phone number:
"Heyek H (henryheyek@xxxxx.fr) is contacting you."
Here is the message:
"Hello, I am looking for a real estate professional to work with. Please contact me to discuss real estate purchase. Thank you Henry H. You can reach me at (647) XXX-XXXX."
Of course no one ever answers the number, which in this case offers a recorded message in both English and French. Not wanting to let a prospective buyer get away, an agent may feel compelled, as we did, to respond by email.
When the "prospect" replies to the email they will graciously thank you, tout their sincerity and request an attorney to handle the funds needed to affect the significant cash purchase they intend to make. Then, outlining the process and their desires, they request a number of listings in a range of above average prices. Another waste of an agent's time, money and resources.
They will pick a property in the mid-range of their parameters and request immediate delivery of a purchase and sale agreement. This agreement will reflect an all-cash offer at slightly less than the asking price with a quick closing date.
Of course, due to their schedule, they will not be available personally, but will send a representative to inspect the property (all spelling and grammatical errors are the original author's):
"Please forward I a purchase contract agreement. Am presently un-available and as such will not be able to travel down to your wonderful city for now but I shall acquaint you with my representatives who will be flying down to your city for the initial state of viewing of this property.
"My account manager Mr. Eric Thompson will Issue payment in US Funds $155,000.00USD for $5,000 the will be for earnest money, second deposit of $30,000.00 and the remaining $249,000 will be disbursed accordingly."
According to our research this scam plays out when the "buyer" sends the checks as promised then cancels the contract upon inspection, demanding a refund of all money before the checks, drawn on a foreign bank, have a chance to clear. Of course the checks were never any good.
We can't help but wonder, if the scammers who are contacting agents through third party sites are also contacting for sale by owner properties listed on the Web too?
Trust an expert... call a Realtor. To find a Realtor to represent you visit the Coeur d'Alene Association of Realtors website; www.cdarealtors.com. There you can also search available properties in the Multiple Listing Service.
Kim Cooper is a real estate broker, Realtor and the spokesman for the Coeur d'Alene Association of Realtors. Kim and the association invite your commentary and feedback. You may contact them by calling 667-0664 or by writing to them at 409 W. Neider, Coeur d'Alene, 83814.