Metro Detroit real estate scams

As a For sale by Owner you may not be aware of some of the real estate scams that are going on. As a real estate agent we are informed by our local real estate associations, and our MLS of the scams and problems that we need to be aware of. I also belong to Active Rain which is a internet blog site where realtor share ideas, and keep each other informed of the latest scams, technology trends, and great home marketing ideas. Selling a home in Metro Detroit can be difficult sometimes, so you do not need thieves and con men trying to scam you out of your money when selling your home. I always say one of my goals is to protect my clients and to help them make smart financial decisions. As a FSBO seller you may not be aware of these scams.

Here is the latest email alert from our MLS. Realcomp which is a great Multi list service. Thanks to them they are looking out for our clients too!

UPDATE (1/28/15): A Realcomp Subscriber reported today that she was contacted recently by “Yen Lee”. Our subscriber recognized the components of the SCAM and notified her broker and Realcomp. Please familiarize yourself with the methods of operation (discussed below) used by SCAM artists and take all necessary precautions to ensure you are not caught off-guard and do not fall prey to these schemes.

--------------------------------------------------------------------------------------------------------------------------------------------------------

ORIGINAL POST (12/11/15): It has been brought to Realcomp’s attention that the following SCAM is actively occurring around the state of Michigan. It usually involves a “Chinese buyer” who sends emails regarding the purchase of a high end property. Below is an article from April 2013 regarding one version of the SCAM. Other scenarios can be accessed via Google that seem to date back to 2010.

http://activerain.trulia.com/blogsview/3706285/high-end-property-scam-with-chinese-buyer

Some of the most recent emails are from a Yen Lee or Jiang Jiemin and bank statements are provided to make the buyer seem legitimate. The offer is close to purchase price including a large deposit. The agents in the Tawas area have been receiving these emails.

Please be sure to read the information at the above-referenced link so if you have not heard of this scam, you will be aware of the different scenarios that can be involved. I’ve heard of the email coming from a doctor as well. Here are some other tips:

A buyer from another country, such as China or England, emails you out of the blue and offers to pay cash for a listing sight unseen. All that he needs is your bank account number so that he can wire his deposit to you or an address where he can send his deposit check. He may also want you to refer him to a local attorney or financial adviser. It sounds too good to be true but you don’t want to offend him if he is a legitimate buyer. What do you do?

Here are some tips compiled from Western Union, Craigslist, Active Rain, and other sources:

1. If the buyer sends you large amounts of funds “by accident”, and asks you to wire the excess funds back to him, never send or wire funds from a check in your account until it officially clears. Having access to the funds does not mean that they cleared.

2. Ask the buyer questions about his work, family, reason for wanting to buy in this area, how he got your name, etc.

3. Ask for a telephone number and speak on the phone.

4. Even if the buyer sends you verification of funds, keep in mind that scammers can create phony bank statements, passports, and other forms of ID. Remember that a former state senator in Rhode Island recently pled guilty to charges that he created phony bank statements.

5. If the buyer asks you for a referral to a local attorney or financial adviser, do not provide a name without clearing it with the attorney or financial adviser. Scammers will use these names to seem legitimate when they try to scam other victims.

6. Before accepting a check that is drawn on a foreign bank, check with your bank to find out whether it will charge a special processing fee and how long it will take for a check drawn on a foreign bank account to clear. The answer may differ from country to country.

7. Do not provide your bank account number to a buyer whom you don’t know. Scammers will pretend that they’re going to wire a deposit to your account in order to obtain your bank account number so that they take your funds.

--------------------------------------------------------------------

So whether you are a buyer or a seller do not send funds to somebody that you have not met. Many times these scammers send you a check or try to take money out of your account. Sometimes the send too much money and ask you to return the excess money. Then by the time the check clears you are out of luck. You have been scammed. Never send back excess money until your bank says their money is in your bank.

These scammers are targeting high end homes of $400,000 +. So be smart and keep your money safe!

Russ Ravary your Local Michigan realtor

Keller Williams Realty (248) 310-6239