The Craigslist real estate section can be wonderful. I have recommended it in several previous posts, including the 3 best ways to find homes for sale in Grand Rapids, tips for working with FSBO homes, and the Ultimate Guide to Buying and Selling Real Estate in Grand Rapids. It has a lot to offer, and when used properly, can be a great resource.
However, there is are some risks. Since postings are not monitored for content and legitimacy, there are scams on the site. The type of fraud varies, from fake money transfers to shady leases, but all can leave you high and dry. How can you avoid scams, while still taking advantage of this great resource?
1. Stay Local
First, work with local people who you can meet in person. The Craigslist real estate site for Grand Rapids has a lot of postings from local property managers, owners, and sellers. When you call on an ad, find out where they are located. Offer to walk through the property with them, or meet at a nearby coffee shop.
For local folks, this won’t be a problem. For a scammer working out of another country, it’s impossible. If the person can’t meet you, or refer you to a legitimate person in the area, walk away.
Many con men will tell you that they are missionaries, are out of town on business, or work for the government. They will have a dozen reasons for why they can’t meet you, and most will probably sound good. Don’t believe them.
NEVER wire money to someone without walking through a property, and don’t believe the ‘send me a check and I’ll send you keys’ scam.
2. If it sounds too good to be true, it is.
Are all of the houses in an area renting for $1,000 per month? The house being offered at $400 is not legitimate. Is the beautiful condo that should sell for $150,000 being offered at $60,000? It is a scam.
This is difficult, because we all want to find a good deal. But put yourself in the shoes of a legitimate landlord. If they could easily fill their home with a good tenant by offering $100 less than market value, why would they offer it for $500 less? It doesn’t make sense.
You can find great deals on the Craigslist real estate site. However, you won’t find a legitimate property without major flaws for pennies on the dollar.
3. Scammers are smarter now.
Sometimes, fake posts are easy to spot. The grammar is awful, half of the words are misspelled, and there is no real contact information. However, most con artists are smarter than that.
They will steal legitimate real estate posts from other websites, including text and pictures. Everything will look very nice, and it will be indistinguishable from a regular post. They will replace the real contact information with their own, and hope you send them money.
They may provide a phone number (that rings to an answering machine), and they may email back and forth with you several times. However, if you take a few minutes to research, you can stop them from fooling you.
Search for the ad text in Google. Often, fake ads are copied word for word from a real site. If you find the same posting listed for a higher price elsewhere, the low price is probably fake.
If the person tells you they are ‘working around their property manager,’ call the property management company, and look up the housing records online. Odds are good that the person is not the actual owner.
4. Listen to your instincts and look at facts.
Trust yourself, and trust facts. If you are getting a strange vibe from a person, pay attention to it. If they are being evasive, or some things don’t add up, break off contact with them immediately.
If they can’t arrange a walk-through of the property, are pushing you to send money, or tell you to ‘just look in the windows,’ walk away. These are all clear signs of a scam.
Don’t let your desire for a great deal blind you to facts. Con artists rely on you ignoring your gut instincts. Pay attention to the red flags, and act accordingly.
5. Craigslist is still valuable.
Yes, scams happen on Craigslist real estate. However, the vast majority of posts are legitimate.
So don’t be afraid to use the site. Just use your common sense and some caution, and you can find a great place to live!