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Real Estate Scam Artists Use Craiglist to Post Fake Ads

Published by Joseph Ferrara (2) April 2nd, 2008 in PSA and Scam. Comments

 

Watch out for this fake ad scam on Craigslist.org (or any other place where real estate listings are posted). Folks who have no connection to homes for sale are trying to rent them to unsuspecting consumers.

Here’s how the scam works: Someone finds a house for sale listing from any real estate site and re-lists it for rent on Craigslist, or other venue. The scam artist misrepresents the facts (eg. owner out of the country) and asks for a deposit upfront (1 month rent plus security, or whatever they can get). The victim pays the money and the person disappears. They later learn the house or apartment was not for rent.

This happened to Seattle Realtor (and blogger) Marlow Harris. Her house, listed for sale at $365,000, appeared in an ad on Craigslist for rent at $1,200 a month. She discovered the scam in time.

I’ve seen a clever version of this rental scam run in the Hamptons. An ad is placed for a summer rental, usually in the fall or winter (you have to list early). Eventually someone answers the ad, comes to see the house, signs a lease and leaves a substantial deposit.   The next person comes– same routine– sign the lease, pay the deposit. This goes on all fall and winter. When summer rolls around, all these folks, with leases in hand, drive up to the house to discover the person who rented to ALL of them is missing– turns out that person was an off-season renter, renting under a false name. Yep. Big rip-off.

So watch it out there folks.

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  • Also open your eye in the for sale section the cars and trucks category 70% of the ads are scams.
  • Wow, thanks for that tip.
  • Sue
    Yes most do, especially when I tell them that I will state its their listing. There have been a few that said no, which in actuality it is not in the best interests of their seller. Advertising is good. The worst thing that could happen is that I sell it.
  • Sue

    Do you find that most listing agents will grant you the permission to post their listings on your website?
  • Sue
    I guess we leave ourselves open with the internet. There will always be people looking for ways to take advantage.

    I do put other agent's listings on my website. However, I check with the agent first and get their permission. This is especially important if they are with a different agency. On my site I reference the agent's name on the listing. This is more than they get with the way IDX features the listings. In NJ the IDX just references agency not the agent.
  • There's been a rise in problems like this recently in my area. I love using CL, but the problems with it seem to be mounting as well....
  • Does high end property appear much on CL?
  • I've heard of Rental and Real Estate Agents tell their clients that they think by putting thier clients high-enjd property on CL, it will be ssen as a desperate act. I'm not sure if I disagree with this entirely as its easy to see how a potential buyers percetption is.
  • Brett,

    I don't agree with your assessment of marketing. As agents we have to rethink our marketing and advertise in all the places buyers are looking, including Craig's List. Sticking with just traditional marketing and traditional real estate web sites does not give adequate exposure to the entire market.

    With regard to Craig's List scams, be careful of people who send you "bank checks" for more than the amount of the purchase. This is another scam going on with Craig's List. The "buyers" send more money than needed, ask you to send them the overage in cash and never come to pick up the item purchased. It seems now there are a number of places you can get a money order and not all the places are legitimate.
  • I just 'discovered' this for myself this weekend, when I got an email from a renter for an apartment I am listing for sale, who responded to a Craigs List ad that (apparently) used my listing language and my photos. The rent ad on Craigs List said 'I' (they used my name) was on a missionary assignment to (you guessed it) Nigeria. The renter googled to find me, as she thought something was a little weird.

    Craigs List had already flagged the ad for removal by the time I heard about it, so their mechanisms are pretty good for only having (what, 12?) employees.

    In my market, BTW, Craigs List is a useful marketing tool for the right apartment to reach the right demographic. And I have also had licensed agents scam my listings by putting them on their websites with (yes) my text and photos, so this problem is not limited to Craigs List.
  • Another craigslist ploy to get buyers: Take another agent's listing and post it as your own-- usually a co-op or condo apt. When an interested buyer calls, the agent contacts the listing agent and says: "I'd like to bring my client over to see the apt." If a deal is struck, the hijacking agent splits the commission with the listing agent. If not, the agent has a buyer client.
  • Unfortunately, the thing that makes Craigslist cool and easy is also the very same thing that makes it ripe for abuse.
  • We had a similar experience occur with our website, but it wasn't a scam. A Craigslist poster used a link to our website to advertise the community in which the home was located. We received a few angry phone calls from people who thought we were renting the property. It took us a while to figure out that people were getting our number from the link in the Craigslist ad.
  • I guess it isn't marketing unless you pay for it? I didn't know that.
  • Maybe real estate agents will actually start "marketing" instead of clamoring to free sites where you get what you pay for....I guess that's just wishful thinking though.
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