As a former real estate agent, host of the National Association of REALTORS(R) “Drive With NAR: The Safety Series” podcast, national speaker, and real estate safety expert for over 29 years, I’ve seen many ugly real estate scams. I’ll review the seven most common real estate agent scams and provide actionable tips on how to show your value and help consumers detect and avoid these issues. 

1. Wire Fraud & Financial Scams

Agents must be aware of numerous wire and financial real estate frauds and scams. But let’s first look at the data.

The numbers: 

• In 2022, Business Email Compromise (BEC) reported there were 2,284 reported attacks totaling $446.1 million in losses in the real estate industry. 
• Over 71% of consumers surveyed in the 2024 State of Wire Fraud Report by CertifID, a wire fraud protection company, stated they weren’t warned about the potential for wire fraud. 
• Approximately 25% of all real estate transactions involve some kind of fraud.

Cybercriminals use AI tools such as ChatGPT, Gemini, CoPilot, Midjourney, etc., to write fake phishing emails, texts, videos, photos, and voice impersonations. These criminals also create phony websites to steal information and trick targets into making payments on non-existent properties and sharing their financial data.

Over 60% of consumers state that their real estate agent didn’t discuss the possibility of wire fraud during the transaction. With the growing popularity of generative AI, cybercriminals can now write grammatically correct and persuasive fraudulent wire change emails. In the past, real estate scam emails were easy to spot, poorly written, and in broken English.

Warning Signs

Cybercriminals use generative AI tools in real estate fraud to create realistic-looking deepfake images of people or properties that do not exist in real life. They can utilize tools like Google Lens to do image searches.

Phishing emails from lenders seeking financial or personal data could be infected with malware and ransomware links.

How to Avoid Wire Fraud & Financial Real Estate Scams

• Encourage clients to independently confirm all transaction details, property information, and identities through official sources and your counsel. 
• Advise clients to refrain from responding to wire change instructions or requests for financial information emails that could be written with AI tools. 
• Establish code words for each client to confirm whether transactions and requests are legitimate.
• Protect your clients from AI home buying scams by implementing rigorous security measures and providing confirmed authentic contact details for all real estate professionals involved in the transaction, including the lender, inspector, etc.
• The National Association of REALTORS(R) provides an email template with a wire fraud warning that should be added to all outgoing email signatures. This can be used by agents to show their value and expertise while protecting consumers from housing scams.

2. Disaster Contractor Scams

If you have listings or work in an area that experienced a weather-related disaster, you must inform your homeowner clients about contractor real estate scams.

The numbers:

• In 2023 $9.3 billion was lost to post-disaster fraud.
• Last year set a record for billion-dollar weather and climate disasters in the US With 28 separate events, each costing at least $1 billion, the total catastrophic losses exceeded $93 billion.

Real estate scam artist contractors target neighborhoods with storm damage. They go door to door and offer to help homeowners work with their insurance agent to file a claim to cover the damage. Their next step is to convince the consumer to let them negotiate on their behalf and receive payments for the work to be done. Or they convince the owner to pay upfront. Once they start the work, they abandon the job, leaving victims in unsafe and unrepaired homes. In addition, some criminals also collect donations for fake charities for disaster relief. 

Warning Signs

Dishonest contractors demand upfront fees for repairs 

Beware if the contractor cannot show proof of insurance, bonding, a business license, verifiable credentials, and legitimate past clients

Aggressive sales tactics, unclear or evasive responses, and hesitation to provide written estimates or contracts

How to Avoid Disaster Contractor Scams

• Offer to assist homeowners by vetting contractors, confirming business locations, checking licenses, insurance, and reviews. 
• Advise them never to pay the total for repairs upfront; establish a payment schedule tied to completed work.
• Homeowners should get at least 3 professional quotes.

To help disaster victims, consider donating to credible organizations like the National Association of REALTORS(R) REALTORS(R) Relief Foundation. The Foundation provides housing assistance to those impacted by disasters.

Coni Meyers, president of Crisis Knowledge Management & Preparedness Foundation, advises agents to express their value proposition by guiding their clients in the aftermath of disasters. She offered tips for agents to serve the consumer during her guest appearance on “Drive With NAR: The Safety Series,” the safety podcast for the National Association of REALTORS(R).

3. Rental, Airbnb & Craigslist Scams

Short-term rental and other house-buying scams are on the rise. Check out these real estate statistics on tenant and rental scams.

The numbers:

• There were almost $400 million in losses due to short-term rental scams in 2022.
• In 2022, 12,000 people fell victim to real estate scams, including short-term rental schemes.

Cybercriminals create pictures of properties that don’t exist. These real estate scammers favorably manipulate property images designed to deceive visitors into paying to reserve the unit. Tenants seeking to rent are also targeted through platforms like Craig’s List. The goal is to facilitate wire fraud by requesting electronic payments and deposits through phishing emails and texts. Cybercriminals are making scam phone calls and videos created with deepfake impersonated voices.

Warning Signs

Criminals can create and manipulate pictures of properties that fool the unaware eye. ChatGPT, CoPilot, Midjourney, Canva, and other AI tools allow realistic images and photos to be easily created in seconds. 

Avoid requests to pay off the platform. Criminals will offer discounts and try to entice visitors to pay them directly. The official platforms provide protection and security measures.

Beware of videos depicting people saying things, text from people writing things that sound too good to be true, or requesting personal or financial information.

How to Avoid Rental, Airbnb & Craigslist Scams

• Before acting, advise clients to verify identities and information through secure channels and official platforms.
• Use encrypted communication channels and watermarked documents
• Encourage strict payment procedures only on the platform while warning clients about wire fraud risks
• Stay updated on deepfake technology and provide cybersecurity training.
• Scrutinize photos, videos, and written requests for data. 

4. Real Estate Land Scams

Land scams can be difficult to identify because they involve no inhabitants and locked doors, as is typical when selling a building.

The numbers: 

• According to the FBI, real estate and rental scams continue to rise, with more than $396 million lost in 2022.
• 77% of surveyed real estate professionals reported a rise in seller impersonation fraud attempts.

Scammers pose as out-of-state property owners selling land they don’t own, aiming to list and sell it illegitimately. Brandie Kittle, broker-owner of Trailhead Realty Group, thought she was dealing with a legitimate owner who had the deed to land because they knew the neighbors and didn’t seem rushed. However, she couldn’t get them to provide identification when asked. After listing the property, she learned it was a scam.

Warning Signs

The “seller” refuses to provide ID or evades questions.

If the seller can’t answer detailed questions about the property or location.

If the seller claims to be out of town or out of the country and unable to meet at the site.

How to Avoid Real Estate Land Scams, Protect Buyers & Sellers

• Verify ownership and identities through official records and documentation— test sellers’ property knowledge. 
• Use real estate safety apps like Forewarn to confirm identities, check for criminal convictions, and verify financial records.

• Trust your instinct: If something feels wrong about the land or seller, walk away or investigate further.
• Request identification from the seller.
• Do not allow them to use their notary. Require the seller to notarize the listing agreement using a remote online notary service, which includes multi-factor identification.
• Mail a short note to the owner on record at the address listed on the property tax records. Call them if a phone number is provided on the property tax card.
• Always use a reputable title company for the closing process.

5. Real Estate Social Media & Online Scams

Social media is an excellent way for real estate agents to promote their businesses. However, it is also like the Wild West, providing ripe opportunities for scammers to exploit people.

The numbers:

• Losses to scams on social media were $2.7 billion from the 1 in 4 people who lost money to scammers
• The FBI’s Internet Crime Complaint Center (IC3) registered more than 880,000 complaints of online fraud in 2023

Cybercriminals use social engineering to steal identities and hijack social media account access, allowing them to post damaging content or erase data and hijack social media accounts. Most dollar losses are to scams that use social media to promote fake investment opportunities. These include real estate investment deals, fraudulent business pages, and hijacking a real estate agent’s profile. 

Warning Signs

You may have been hacked if you cannot log into your social media accounts. 

If your followers and friends message you and tell you they received inappropriate messages or requests, check your account.

Real estate scammers create ads or post salacious content. 

How to Avoid Real Estate Social Media Scams

• Implement robust cybersecurity protocols, including passphrases and two-factor authentication.
• If you’re a broker or manager, provide real estate agent tips and regular training for your agents and teams. 
• Do not click on links or download from sites or people you do not know
• Avoid connecting with strangers on social media without vetting. Cybercriminals can impersonate users and scam contacts, friends, and family. 
• Investigate tools such as Forewarn to confirm the identities of new clients, check criminal backgrounds, and verify financial status.

6. Moving Scams

Another one of the biggest real estate frauds is when people need to hire a mover. Check out these stats.

The numbers:

• A four-state operation in 2023 discovered more than 1,000 violations of Federal Motor Carrier Safety Administration (FMCSA) regulations. 
• Consumers lost an average of $836 to moving scams in 2023, 7% more than in 2022

Dishonest movers lure clients with lowball estimates, then demand inflated prices once belongings are loaded, creating a “hostage situation.” “The mover will lowball the price and, upon pick up and delivery, request that the shipper pay more, or they will not pick up or deliver. Both are now illegal to do,” said Anthony Booker, a moving consultant for Nationwide USA Movers.

Warning Signs

Lack of proper licensing and insurance

Extremely low estimates compared to market rates

Offering quotes sight unseen without an in-home inspection

Multiple negative reviews or history of complaints

Demanding large cash deposits upfront

Using rental trucks or lacking company logos/branding

No physical business address listed

Refusing to provide written estimates or contracts

How to Avoid Moving Scams

• Successful agents will advise clients to obtain binding quotes in writing, beware of fake reviews, and verify movers through the FMCSA website. 
• Report any problems to the appropriate authorities.
• Protect your clients from moving scams by guiding them through vetting and recommending movers with good reputations.
• Participate in NAR’s annual Realtor Safety Month to stay informed about the latest real estate scams.

7. We Buy Ugly Houses Scams

The numbers: 

• 22.6% of property fraud risks occur when the property is undervalued and its value misrepresented.
• According to the FBI’s Internet Crime Complaint Center, real estate fraud resulted in nearly $400 million in victim losses in 2022.

Buyers target desperate homeowners, often facing foreclosure or financial issues, with lowball cash offers below market value. They use high-pressure tactics or false promises to purchase and resell for profit. They can also target desirable neighborhoods and flood them with postcards and letters with cash offers. 

Warning Signs

Extremely low offers compared to market value.

Requests for large upfront payments.

Lack of company website/address.

Failure to provide required legal disclosures.

How to Avoid:

• Advise sellers to research the company’s reputation, online presence, and licensing
• Do not pay upfront fees before the sale finalizes
• Beware of high-pressure tactics
• Insist on a written contract detailing all terms, costs, obligations
• Encourage homeowners to work with a licensed and knowledgeable real estate agent
• Offer a comparative market analysis (CMA) or encourage homeowners to get an appraisal to determine the home’s value, even if you don’t get the listing. You can charge a nominal fee for CMAs, saving the seller tens of thousands!
• Trust instincts; walk away if something seems off or the investor is overeager

Bringing It All Together

Safety sells in today’s real estate market. In the aftermath of the massive $418M commission lawsuit, prioritizing client safety is no longer optional—it’s a necessity for survival and thriving and the perfect way to establish your value proposition. Agents can add robust safety practices woven into their business model. Build trust, credibility, and loyalty that keeps clients coming back. Clients who feel secure working with you will be loyal, increasing your earnings.

Your Turn

What real estate scams are you or your clients encountering? Let us know below!

The post 7 Real Estate Scams & Ways Agents Can Protect Their Clients appeared first on The Close.

She had to run from a vacant listing because of drug dealers, and her office was robbed…

That’s when Sonia decided to buy a gun.

Here’s Sonia in the Chicago Tribune explaining why:

“I want to choose and have control of my own destiny, because at this point, I should have been dead.”

Curious about the increasing number of stories like Sonia’s and the alarming NAR report from last year that found 25% of male Realtors carried guns, we decided to dig deeper.

We talked to Realtors who carried weapons during showings to find out their stories.

We also looked more closely at the data to see what the heck was going on… Why are so many Realtors carrying weapons?

Here’s what we found out.

The Weapons Realtors Carry: by The Numbers

While most of us read the NAR report from last year that said 25% of male Realtors carry guns, there was a far more alarming statistic buried in the data.

The fact that more than 50% of all Realtors carried weapons of some kind to showings.

Here’s a quick breakdown of the types of weapons Realtors carried:

Why so Many Realtors are Afraid

According to NAR statistics, ~3% of Realtors self reported being victims of physical crime on the job. While that may seem like a relatively low number, it’s important to remember that the overall average for the country hovers around 21 crimes per 1,000 people, or a little under 2 percent.

While the raw percentages of Realtors who have self reported being victims of crime on the job isn’t that high, many Realtors still fear going to work every day.

For example, 44% of female agents felt afraid at open houses or in vacant or model homes.

Here’s a quick breakdown of areas where Realtors felt afraid:Somewhat surprisingly, there was very little difference in levels of fear between Realtors who worked in suburban or urban areas. Realtors also reported feeling safer in small towns and rural areas than in urban or suburban areas.

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The National Association of Realtors Stance on Weapons

Curious about the official take NAR had on weapons, we reached out to NAR’s Managing Director of Media Communications, Sara Wiskerchen to get their opinion. Here’s what she told us:

“The National Association of Realtors® doesn’t have a position on the legal use of firearms or any other personal safety device used by agents. However, NAR recommends that before agents arm themselves with any self-defense weapon, including firearms, sprays or Tasers, that they know their local and state laws and brokerage’s policies to ensure they are conforming to all applicable rules and regulations. Also, homeowners always have the right to prohibit agents from carrying guns onto their property.”

While this statement was fairly even handed, it doesn’t quite address an issue that many Realtors were concerned with.

Safety training for guns or other weapons.

An amazing 55% of Realtors said their associations should provide gun training as a member benefit.

In Their Own Words: Realtors Who Carry Weapons

As you might imagine, the inherent risk of meeting strangers in out of the way locations, and the idea of leveling the playing field was the most common reason Realtors carried weapons.

Here’s Virginia Realtor Chris Cloud explaining his take on Realtor safety:

Virginia Realtor Chris Cloud, Weapon Carried: Gun

“My wife and I both concealed carry while showing properties. I carry always. The “set-up” too easily favors the predator. They set the destination, they set the meeting time. It’s “neutral” territory–neither My place or Theirs, so crime is easier.

Realtors are Vulnerable.”

Florida Realtor, Real Estate Investor & Writer Alison Bethell, Weapon Carried: Gun

“I started out with a Taurus revolver with a pearl handle. It was recommended to me by a firearms store because it’s lightweight, easy to carry and doesn’t have a lot of recoil. I also really liked the aesthetics of the pearl handle. I also had a Glock 9mm but mostly just used that to practice at the shooting range since I found it too heavy to carry.

At the time I carried, I owned a real estate brokerage and investment properties as well as a bar and nightclub. Some of my properties weren’t in the best neighborhoods and I also had a property management division where I managed about 20 of my client’s properties.

I went to the shooting range regularly and it built up my confidence the more I practiced. I only carried when going to my bar and nightclub and when picking up rent or meeting contractors at the properties. Thankfully I never had to use my weapon but it just gave me the feeling of added security once I got used to carrying it. I had tenants threaten me(mostly because they were getting evicted or didn’t want to pay rent etc), I even had to get a protective order against one and called the police on at least 2-3 tenants over the years.”

Retired US Navy Commander, Leadership Speaker, and Realtor, Mary Kelly, PHD: Weapon Carried: Gun

“I started carrying my 9 mm as a realtor when I found cocaine during a listing appointment. I realized then that not all clients are trustworthy, and I also learned that is it necessary to fire clients who are not a good fit for me.”

Tennessee Realtor Chad Baur, Weapon Carried: Gun

“It is a privilege that I am allowed to carry a firearm in defense of my family and myself and today we experienced the benefit of that privilege firsthand. I am extremely grateful to have not had to use my weapon (I value human life quite highly and I hope I never need to harm another person).”
Via: Concealed Nation

Connecticut Realtor Jerry Diorio, Weapon Carried: Gun

“I don’t leave home without my Ruger 38. Haven’t had to use it. Better to be judged by 12 than carried by 6.”

Via Facebook

Idaho Realtor Christine Martinez, Weapon Carried: Gas Gun

“I carry a gas gun and before any open house or meeting anyone I place it on me where I can use it!!! Any unyousel feel before entering a house I go with my gun.”

Via Facebook

Wyoming Realtor Jill Kamber Knox, Weapon Carried: Gun

“ Yes, always! .38 special locked & loaded. Hopefully I never need to use it. Always go with my gut & my office & husband know where I’m going & who I’m showing. I will take a pic of vehicle & plate just in case.”

Via Facebook

San Antonio Realtor, Joe Edward Herrera II, Weapon Carried: Gun

“As a former sheriff deputy I’ve seen first hand what could happen if your not prepared, so I carry my glock .40 at all times. I havent had to use it as a Realtor but id rather have it and not need it, then need it and not have it.”

Via Facebook

Utah Realtor, Jennie Hendricks, Weapon Carried: Gun

“Always carry. .38 revolver- haven’t used it defensively, but don’t keep it a secret that I carry.”

Via Facebook

Pensacola Realtor, Barbara Hobbs, Weapon Carried: Gun

“I carry a Glock 19, have not had to use it- but while showing a few houses today we went to a foreclosure- opened the lockbox an the door was open… Just pushed- Thankfully it was my boyfriend and I looking… He was carrying, mine was in my bag- I got mine, he went in took his out of his pocket- and we did a sweep- I would never have gone into a few if I didn’t have my gun with me…. “

Via Facebook

Pennsylvania Realtor, Leah Christine, Weapon Carried: Gun

“A .38 special, I’ve never had to use it but I’m glad I have it with me in case I do.”

Via Facebook

Over to You

Do you carry a weapon as a Realtor or know someone who does? We want to hear your story. Hit us up on Twitter or leave a comment.

The post Shock Study: More Than 50% of Realtors Carry Weapons on Showings appeared first on The Close.