Real estate scams are more common than you think, and they can cost you everything.
Buying, renting, or selling property should be a step toward financial security, but in an industry where huge amounts of money change hands, scammers are always looking for ways to take advantage. Whether it’s fake listings, fraudulent wire transfers, or shady investment deals, real estate scams can drain your savings, ruin your credit, and leave you without a home.
The worst part? These scams don’t just target first-time buyers or renters. Even experienced homeowners and real estate investors fall victim to well-planned fraud. Scammers use urgency, pressure tactics, and increasingly sophisticated schemes to fool people into handing over their money before they realize something’s wrong. The best defense is knowing exactly what to watch out for. These thirteen real estate scams have cost people thousands—and sometimes even their homes.
1. Fake rental listings trick renters into paying for properties that don’t exist.
One of the most common real estate scams involves fake rental listings. Scammers copy real property listings from legitimate websites, change the contact details, and repost them at a bargain price on platforms like Craigslist or Facebook Marketplace. When interested renters reach out, they’re pressured to send a deposit quickly—often through wire transfer or payment apps like Zelle or Venmo—before someone else “snags the deal.”
By the time the renter realizes something’s off, the scammer is gone. Sometimes the property was never available for rent, and in other cases, the scammer posed as an owner when they had no legal right to lease it. The biggest red flags include landlords who refuse to meet in person, demand money before a lease is signed, or claim to be out of the country but can “mail the keys”, as stated by First Star Realty. If a rental deal seems too good to be true, always verify ownership through property records and insist on seeing the place in person before sending any money.
2. Wire fraud scams steal homebuyers’ down payments before closing.
Homebuyers preparing for closing are prime targets for a devastating scam. Hackers infiltrate the email accounts of real estate agents, lenders, or escrow officers, then send official-looking emails with updated wire transfer instructions. The buyer, believing they are following instructions from a trusted source, wires their down payment—sometimes tens or hundreds of thousands of dollars—directly into a scammer’s account, as reported by Jeff Ostroski at Bankrate.
By the time the mistake is discovered, the money has vanished. To protect yourself, never trust last-minute changes to wire instructions received via email. Always verify transfer details directly with your escrow officer using a phone number you know is correct, and be highly suspicious of any email requesting urgent payment changes.
3. Title fraud lets scammers steal your home without you realizing it.
Title fraud occurs when someone forges property ownership documents, transfers the title to their name, and then either sells the home or takes out loans against it. Homeowners who have fully paid off their property are especially vulnerable because there’s no mortgage lender monitoring activity on the title, according to Christy Beiber at Yahoo Finance.
Victims usually don’t realize something is wrong until they receive foreclosure notices on loans they never took out. Protect yourself by regularly checking your property records, signing up for fraud alerts through your county recorder’s office, and considering title insurance that covers fraud-related losses.
4. Foreclosure rescue scams target homeowners in financial distress.
When people fall behind on mortgage payments, they become targets for foreclosure rescue scams. Fraudsters pose as foreclosure prevention experts, promising to negotiate with lenders on the homeowner’s behalf. They charge upfront fees, claim they can guarantee a loan modification, or even trick homeowners into signing over their deed under the pretense of temporary assistance.
In reality, they do nothing to stop foreclosure. Some homeowners end up losing their homes because they trusted a scammer instead of working directly with their lender. If you’re struggling to make payments, only seek help from HUD-approved housing counselors and never trust anyone who demands upfront fees or guarantees results.
5. Moving scams hold people’s belongings hostage for extra fees.
Not all real estate fraud involves buying and selling—some scams happen on moving day. Fraudulent moving companies offer a low estimate, then once the truck is loaded, they demand double or triple the agreed-upon price. If the victim refuses to pay, their belongings are held hostage or even abandoned.
Protect yourself by researching moving companies thoroughly, reading reviews, and confirming that they are registered with the Federal Motor Carrier Safety Administration. Get a written estimate that includes all potential fees, and never pay in full before your items are delivered.
6. “We Buy Houses for Cash” scams trick desperate sellers into bad deals.
Signs that say “We Buy Houses for Cash” are everywhere, and while some investors are legitimate, many use predatory tactics to buy homes far below market value. These buyers pressure struggling homeowners into accepting unfair deals, sometimes using misleading contracts that strip them of their rights.
Once the deal is done, the seller often realizes they’ve lost tens of thousands of dollars—or worse, signed over their home without proper compensation. If you need to sell quickly, work with a licensed real estate agent or a reputable investment firm rather than responding to vague signs or flyers promising fast cash.
7. Home improvement scams leave homeowners with unfinished or dangerous work.
Scammers posing as contractors target homeowners looking to renovate. They promise cheap prices, demand large upfront payments, and then either perform substandard work or disappear entirely. These scams spike after natural disasters, when people are desperate to repair storm damage.
Protect yourself by checking contractor licenses, verifying insurance, and never paying in full upfront. Reputable contractors will provide written contracts and references, while scammers often insist on cash payments with no paperwork.
8. Fake real estate agents steal deposits and disappear.
Not all scammers pose as landlords—some pretend to be licensed real estate agents. They create fake listings, schedule showings, and even collect deposits from unsuspecting buyers or renters. Victims often realize they’ve been scammed only when they try to move in or finalize the sale, only to find out the scammer had no legal authority to handle the property.
Always verify an agent’s credentials through your state’s real estate licensing board. If an agent avoids providing proof of their license or pressures you to send money quickly, it’s a major red flag.
9. Overseas property scams sell land or homes that don’t exist.
Investing in international real estate can be exciting, but it’s also a common scam. Some fraudsters “sell” land, condos, or vacation properties that don’t exist or aren’t legally for sale. Buyers often send deposits and later discover they’ve purchased nothing.
Always visit the property in person, hire a local real estate attorney, and verify all records before sending money. If a deal is being rushed or seems unusually cheap, assume it’s a scam.
10. Timeshare resale scams trick owners into paying fake fees.
Timeshare owners looking to sell often fall victim to scammers claiming they have a buyer lined up. The scammer charges an upfront “processing fee” or “closing cost,” but the sale never happens. Many owners pay thousands in fake fees before realizing they’ve been scammed.
Legitimate timeshare resales don’t require large upfront fees. Always work with licensed real estate brokers who specialize in timeshare sales and avoid companies that promise guaranteed buyers.
11. Bait-and-switch property listings lure buyers into overpriced deals.
Some sellers or agents list properties at unrealistically low prices to attract interest. Once buyers inquire, they’re told the property is no longer available but are pushed toward a higher-priced listing.
If a deal seems too good to be true, research similar properties to compare pricing. If the agent refuses to show the original listing or keeps pressuring you into a more expensive property, walk away.