Is Craigslist The Home Of All Real Estate Scams?

Joe Nickelson
Sep 9, 2018 · 5 min read

Gone are the days when people used to search local newspapers for rental houses or their dream homes. Thanks to the internet, now there’s Craigslist to help you find what you need in just a matter of minutes without leaving the comfort of your home.

Unfortunately, it’s not always fun and games when it comes to finding a place to live in on Craigslist. Just as there are fake profiles in the site’s dating section, so are there quite a number of scammers in the real estate section.

About 25 percent of rental listings on Craigslist are fakes. A survey by the Better Business Bureau, shows that more than half of these fake listings go unidentified by Craigslist.

Although Craigslist removes such ads ASAP, many rental scams may stay on the site for up to 20 hours. This is enough time to lure an unsuspecting home buyer or seller.

Anyone can fall for these scams. The only way to protect yourself is to be familiar with the tactics used to trick people.

To help you avoid these scams, here are 7 red flags on Craigslist to look out for:

1. A suspiciously low price

If you’re looking to buy or rent a house, the lower the price the better for you. It’s therefore, understandable if you notice the cheaper options first. However, when the price is too good to be true, chances are that it’s a fake.

Before you contact the advertiser do a quick comparison of the listings in your area of interest and see just how low the prices go. If what you’re seeing on Craigslist is way lower than this, then you better move on you’re about to be scammed.

2. Duplicate listings for the same house

When reviewing listings on Craigslist make sure that you Google search the images used on the ads. If you see an image pop up on other listings, or other websites for a different location then it’s an absolute scam.

You can also search the listing description and see what comes up. In most cases scammers will copy the real owner’s description word for word.

Also, a simple giveaway is if the photos used in the ad have a watermark of a real estate company or a name totally different from that of the advertiser. This simply means the photos are not originals and have been stolen from someone else.

3. Missing address

Another major red flag is a listing that does not have an exact physical address. A listing that mentions a general area but not an exact physical address for you, is an indication of a non existing physical property.

If you really like the listing and contact the advertiser make sure that you ask for the physical address. If they are sneaky with you then move on to the next listing, this one is up to no good.

4. They can’t show you the house

This is the ultimate give away. You definitely need to see the house before you make any kind of payment. But many scammers will come up with all sorts of excuses not to show you the house.

Some will say they are out of the country others will say that they are away for vacation. Others will claim to be busy and ask you to pass by the house and see the exterior but never the inside.

One thing is for sure, if they are giving you such excuses they definitely don’t own the house. That’s the REAL reason why they can’t show you the house.

An honest property owner understands that a potential buyer or renter needs to see the property before making any kind of commitment. They will therefore, make time to show you the house because it’s an important step in the process. If they can’t do that then don’t engage them any further.

5. Owner tells a sob story

Be wary when the advertiser sends you a sob story of why it’s important that you send them money for either a deposit or down payment ASAP.

Often, the sob story will be about a death or a sickness in the family. They will make you feel so sad that you want to pay for the house immediately.

Hold your horses before you make that wire transfer. Do your background research first. Before you send any funds ask for a criminal background check and employment verification for the advertiser.

You can also run a quick Google search of the person. Just make sure everything adds up and remember to see the property before paying any money no matter what.

6. Insists on specific modes of payments

Raise an eyebrow if an advertiser insists that you should make payment, for whatever reason, via wire transfer, money order, Western Union, Prepaid Visa, or Moneygram.

Scammers prefer these payment methods because it’s practically impossible to get your money back. This is why such payment methods are the best choice for scammers.

7. Insisting on down payment before you see the house

It’s general routine to pay your first month’s rent as a security deposit as you pay your application fee before you move into the house. However, this should only happen after you’ve seen the house, done your background check and you’re satisfied that everything is in order.

Scammers will normally want to get to the money part as fast as possible before you grow suspicious. They will therefore, insist on getting the deposit before they show you the house.

Others will go easy and simply ask you for a viewing fee. There’s absolutely no reason why a homeowner should be charging a viewing fee. So don’t fall for this trick.

Con artists have upped their game and even the best of us can get scammed. So, while Craigslist is a good place to search for your next home, it’s also the home of real estate scams.

Before you start your search review the Craigslist Safety page for tips on how to recognize suspected scams. It doesn’t hurt to be alert as you do your search. It will definitely save you your money!

Joe Nickelson

Written by

Realtor & Author dedicated to helping home buyers & sellers own their dream property. I write books to help homeowners sell their homes for top dollar fast.

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