Rental Scams

The Latest Rental Scam

Written by: Chelsy Vaughn Martin

It seems like whenever I open my e-mail lately, another warning about a scam is waiting in my inbox. Today, I got a memo from the company about rental scams. According the the IRA "a typical scenario involves an individual who is not the owner or owner's agent placing an ad to scam the unsuspecting public out of money for deposits."

Great! Now I have to go to Google to check all of our listings, not that it's easy to find the scams. According to our Regional Operations Manager, one of the agents I work with had a scam reported. They were told it was listed on Zillow, but they couldn't find it when they tried to search for it. Finally they discovered that it was buried on the second page, somewhat hidden. 

This e-mail gave me tips on how to find and also prevent this scam from happening to my listings. They said not to list my email or phone number. Excuse me! How are interested parties going to contact me about my listings if I don't provide them with any CONTACT(key word here) information? Obviously checking craigslist and other sites known to advertise for rentals is a must. But what I want to share with you, is how to spot a rental scam. As an agent, I'm going to do everything that I can to prevent this from happening to one of my listings, but obviously some agents won't do the work and even the ones who do, won't be able to prevent it every time.

So, how do you spot if the rental property you are interested in is a scam? According to Indiana Realtor Advocate, these are the red flags you need to look for:

• If the rental price is too good to be true it probably is! According to Ken Vaughn, prices in Fort Wayne for rentals run from around $650-$1500 depending upon location, size and quality obviously.
• Don't send money up front to anyone you don't know or before you see a property or sign a lease.
• Don't deposit a check from someone and then agree to wire money back for an overage. Return the check if you receive over payment.
• Will the owner only interact with you online? Can the owner show you the property or make arrangements for you to see it?
• Wiring money required.
• Urgency... "I need to hear from you today!"
• Never provide your bank account number, routing number or other financial or personal information.
• Bottom line: Trust your gut!

If this happens to you, report it! You can file a complaint at www.ic3.gov if you have been a victim of internet crime. Also, you can file with the local law enforcement. File with the Indiana Attorney General by logging on to www.Indianaconsumer.com or calling their Consumer Hotline at 1-800-382-5516. File with the Indiana State Police by going to www.in.gov/isp, go to the about ISP tab and select your geographic area, it will identify a corresponding number depending on where you reside. 

This really aggravates me, it's just another thing that we as agents have to be concerned about and you as a consumer have to worry about. But, the more you know, the less likely it is to happen to you. The biggest thing here is that only the agent or the owner should be able to get inside the house. If they can't show it to you at some point, there is a reason. Also, if you notice that a listing is being fraudulently represented by someone other than the owner or agent, try to contact them if at all possible. By helping one another we can hopefully eliminate the incentives for scammers to do this to people!

Why the Holidays can be a good time to buy.

Why the Holidays Can Be A Good Time to Buy a Home.

Written by: Chelsy Vaughn Martin

If you've been considering buying a home recently, maybe you should add that to your Christmas list. I spoke with Ken Vaughn of The Vaughn Group at RE/MAX Results in Fort Wayne today about why the holidays can be a good time to buy a home.

1. Fewer Buyers

Right now the people interested in buying tend to be more motivated. "People have goals in mind. Some of them want to buy a house by the end of the year and others want a house to start the new year out." says Ken. "There are few buyers out right now and potentially a better opportunity to make a better buy." Ken has been in real estate for over 34 years and knows real estate like the back of his hand. "I'm good at what I do, and I don't say that arrogantly. I love what I do." Our listings on Realtor.com are already receiving less views than in previous months, a sign of a slowing market. Fewer buyers means that there is a reduced chance of multiple offers and bidding wars. This could mean a better buy for you!

2. Eager Sellers

"Another advantage is that some sellers become more motivated at this time year because the market slows down," says Ken. This means that sellers will likely be more willing to negotiate on terms that would have been out of the question for them before the holidays. Sellers may want to sell before the end of the year for tax purposes as well.

3. Greater Affordability

During the month of December, home prices are lower than any other time of year. You can see by looking at the average list price on Zillow Market Reports that the list price is typically the lowest in the month of December. With interest rates and home prices predicted to rise in 2014, this makes now a great time to buy. According to the National Association of Realtors, 30-year fixed mortgage rates are to hit 5.4% by the end of 2014. Home prices are expected to increase an average of 3-5% in 2014.

4. Quicker Mortgage Approval

I asked Greg Thomas at Ruoff Mortgage if it is generally faster to get approved this time of year because of less people trying to buy. "We can get deals done in three weeks this time of year," Greg told me. "The rest of the year, it takes on average weeks to get deals done."

So there you have it. Adding a house to your Christmas wish list could be a great opportunity for you this year. If you have any questions, or comments, let us know. Call/text or email Ken at 260.413.9416 or ken@fwhomz.com, or call/text or email me at 260.403.8236 or chelsyvm@fwhomz.com.

One last thing, leave me some comments down below, I want to know what you guys think of my blog. Give me some feedback, ask questions if you want and let me know what real estate topic you'd like to have me blog about next! 

Conventional Loans 3%-5%

CONVENTIONAL FINANCING MILESTONE

GUEST BLOG WRITTEN BY: GREG THOMAS

November 15^th marks another milestone for conventional financing. The minimum down payment of 3% for Fannie Mae backed loans is once again moving back up to 5%. This move will match their Freddie Mac counterpart current requirements. Many lenders will still be able to offer the Conventional 3% down payment program for folks that currently have accepted offer and are in a position to lock their loan by the end of business tomorrow. This probably goes without saying, but a limited amount of folks currently in the market will be able to take advantage of this.

This upcoming change should not be a deterrent for conventional financing for folks that need a low down payment option. Many people do not realize that a gift from a family member is allowed with conventional financing. For example, if a buyer only has 3% of the own money they can receive a 2% (or more) gift. There are even some lenders that allow for the entire down payment to be a gift and still be eligible for conventional financing. This is huge for anyone that thinks or has been told FHA is the only loan available to them. FHA loans have expense financed fees and lifetime PMI!!! Whereas, conventional financing has many more options and is a much less expensive. Be sure to check with a trusted mortgage professional for more details and find out what ALL of your options are before signing on the dotted line.