How to Avoid Real Estate Scams as a Buyer

1. How to Avoid Real Estate Scams as a Buyer Buying real estate can be an exciting yet daunting process, especially with the rising cases of real estate scams. Scammers prey on unsuspecting buyers by offering fake listings, misrepresenting properties, or manipulating documents. In Nigeria, these scams can lead to significant financial losses and emotional stress. In this guide, we'll explore how to identify and avoid common real estate scams so you can navigate your purchase with confidence. Whether you’re considering a house for sale in Ajah or looking at a shop for sale at an affordable price in Lagos, understanding these tactics can help you protect yourself and make a safe, informed decision. Common Real Estate Scams to Watch Out For Awareness is the first step in avoiding scams. Here are some of the most common real estate scams that buyers face:

2. 1. Title Fraud: This occurs when a scammer sells a property they don’t legally own, often using forged documents. 2. Fake Listings: Scammers create listings for properties that don’t exist or are not for sale, tricking buyers into paying deposits. 3. Bait-and-Switch: A property is advertised at a great price, but when you inquire, it’s “already sold” and a pricier property is offered instead. 4. Double Selling: Fraudsters sell the same property to multiple buyers, often absconding with down payments. Scam Type Description Warning Sign Title Fraud Selling a property without legitimate ownership. Incomplete or missing documents. Fake Listings Advertising non-existent or unavailable properties. Unusually low prices; requests for upfront fees. Bait-and-Swi tch Switching the advertised property for a more expensive one. Original property is suddenly “unavailable.” Double Selling Selling the same property to multiple buyers. Pressure to pay quickly; unverified ownership. Tips to Avoid Real Estate Scams 1. Verify the Seller’s Identity and Ownership Documents When buying a property, the first step is to verify the seller’s identity and ownership documents. Scammers often use fake IDs or stolen documents to pose as property owners. ● Check the Title Deed: Request to see the original title deed and verify it with the local land registry. Confirm the Seller’s Identity: Ask for government-issued ID and ensure the name matches the title deed. Use a Lawyer or Real Estate Professional: They can help you confirm ownership and identify any red flags in the documentation. ● ● 2. Be Cautious of Deals that Seem Too Good to Be True A common tactic scammers use is to lure buyers with offers that seem too good to pass up, like an unusually low price on a house for rent in Lagos. While a great deal is possible, always investigate further if the price seems suspiciously low. ● Research Comparable Prices: Check listings in the area to see if the price aligns with market trends.

3. ● Ask Why the Price is Low: A legitimate seller will have a clear reason, such as urgent relocation. Avoid Upfront Payments: Be wary if the seller demands payment before you’ve had a chance to view the property or verify documents. ● Locatio n Average Rent (₦) Scam Alert Price (₦) Ajah 500,000 - 1,200,000 200,000 - 300,000 Ikeja 700,000 - 1,500,000 300,000 - 400,000 Yaba 600,000 - 1,000,000 250,000 - 350,000 Prices that are significantly below the average market range can be red flags indicating a potential scam. 3. Avoid Cash Transactions and Wire Transfers Scammers often request cash payments or wire transfers, as these methods are harder to trace and recover. Instead, opt for more secure payment methods like bank transfers that offer better protection and a clear paper trail. ● Use a Verified Escrow Service: An escrow service holds the funds until all conditions of the sale are met, ensuring that both parties are protected. Insist on Official Payment Channels: Use bank transfers or checks that can be traced, rather than cash payments. Consult Your Bank: They can advise you on secure payment methods and help detect potential fraud. ● ● 4. Visit the Property in Person Whenever possible, visit the property in person before making any payments. Scammers frequently target remote buyers, knowing they may not have the chance to see the property firsthand. ● Verify the Address: Confirm that the property exists at the given location. Some scammers create listings with fake addresses or use photos from other properties. Speak to Neighbors: If possible, talk to neighbors to confirm that the property is for sale and to learn more about the area. Request a Virtual Tour: If you can’t visit in person, ask for a virtual tour over a video call to ensure the property matches the listing details. ● ●

4. 5. Work with Reputable Real Estate Agents and Platforms One of the best ways to avoid scams is by working with a trusted real estate agent or using reputable platforms like Nijahomzs. These professionals have local expertise and can help you navigate the buying process safely. ● Check for Licenses and Credentials: Verify that the agent is licensed and in good standing with the relevant real estate association. Use Known Platforms: Platforms like Nijahomzs carefully vet their listings and sellers, reducing the likelihood of encountering scams. Ask for References: Request references from past clients to confirm the agent’s reputation and reliability. ● ● 6. Understand the Legal Process and Get Everything in Writing Having a basic understanding of the legal process can help you recognize when something is off. Scammers may attempt to bypass certain steps or use fake contracts to expedite the sale. ● Ensure All Agreements are in Writing: Verbal agreements are difficult to enforce, so always get terms in writing. Use a Real Estate Lawyer: A lawyer can review contracts and ensure all documents are legally binding. Request a Receipt for All Transactions: Keep records of all payments, and make sure receipts match the terms agreed upon in the contract. ● ● Transaction Stage Required Documentation Potential Scam Alert Initial Offer Purchase agreement, ID, proof of ownership Missing or vague details, reluctance to share Payment Payment receipts, escrow account documentation Cash requests, refusal to use escrow Final Sale Transfer of title deed, sale contract No written agreement, forged documents Conclusion Buying real estate is a significant investment, and it’s crucial to approach the process with caution to avoid scams. Whether you're searching for a house for rent in Lagos, a house for sale in Ajah, or a shop for sale in affordable price in Lagos, staying vigilant and informed can protect you from fraud. Always verify documents, be wary of deals that seem too good to be true, and work with reputable professionals to ensure a safe and secure transaction.

5. By following these tips and understanding the warning signs, you can confidently navigate the real estate market and make sound investment decisions. With platforms like Nijahomzs offering verified listings and professional support, you have valuable resources at your disposal to help you avoid scams and find the right property for your needs.