How To Avoid Real Estate Fraud (part 2)
How To Avoid Real Estate Fraud
Other Red Flags
While the above “red flags” are frequently used there are many other indicators that you need to be aware of:
“Rebates” on Sales Price
“Rebates” on Broker’s Fee
Overly Inflated Sales Prices
Land Flips
Commission Based on a Sales Rice
Amended Contract to lower Than What is in Contract
Reflect New Purchaser
Multiple Transactions Between Agreements to be Performed
A “Friendly” Appraiser Affiliated Parties “Outside or After Closing”
The use of Inappropriate Comparables (mixed use vs. commercial zoning, urban vs. rural)
Increased Value as a Result of renovations with High Dollar Soft Costs (architect fees, engineering fees, consulting fees, management fees) vs. Hard Costs