Starting Your Housing Search Online? 3 Scams to Look Out For: By D. Michael Burke

As published in the News-Press May 29, 2010  — Michael Burke Bonita – Estero Luxury Real Estate Expert

The Internet has been a great tool for both sellers and buyers – you won’t ever hear me denying that. Most buyers these days begin their search for the perfect home online, for instance, while sellers are granted an amazing tool for researching housing prices and real estate agents. But while the Internet has been mostly a good thing for the real estate market, it has also invited a few scams buyers need to be aware of. Here are a few things to keep in mind when doing your home shopping online.

Fake Photos

Unfortunately, it is really easy to fake photos and virtual tours in online listings. Sellers can make pictures of the home look better than it really is in all sorts of ways: Posting old pictures, such as from when they had first bought the house and it still looked perfect; tinkering with the color and contrast settings to make the landscaping appear more lush, since as everyone knows a greener setting sells a house better; and even altering the photos in Photoshop to make it look like the neighbors aren’t really that close, or to erase flaws in the hardwood floor.

An even bigger problem is that the photos you see of the interior of the house may not actually be that house at all. With tons of photos online, it is all too easy for the dishonest soul to pick out a photo of a bathroom, or a kitchen, or a bedroom that looks like it could be in their home, and add it to the listing.

So how do you protect yourself? Luckily, there are a few ways. You can always drive by the house, obviously, and schedule a showing to see the inside. Google Maps and Google Earth also help you check out the neighborhood while online and see if it is really as pretty and green as it looks in the listing photos. The overhead view is good for checking the size of the property, getting a look at the backyard, and scanning the neighborhood for signs that it might not be such an ideal setting after all (e.g., trash in yards, dead or overgrown landscaping). The street view will show you what the house really looks like from the front (just in case the listing picture has been fudged) and give you another view of the neighborhood. Finally, some cities and counties allow you to do an online parcel search and view details such as the city’s appraisal, what improvements have been done (with a permit), and a recent photo of the front of the house.

Inaccurate Descriptions

Even more common than faked pictures are fudged descriptions. These are more insidious, in a way, because they are not necessarily outright lies — the seller might simply be fudging the truth. For example, you might find that the four-bedroom house you were expecting is simply a three-bedroom house with a utility room. Or the seller might claim to have done a complete remodel, when all the really did was minimal updates in the bathroom or kitchen. Another, common fudge is that the property includes a rentable mother-in-law apartment, when the apartment isn’t legally rentable at all.

Fortunately for you, most things can be verified online these days. For instance, when you are browsing houses online, you can do a parcel search on the county’s website to double check square footage, number of bedrooms, and the size of the lot, not to mention the dates of any improvements to the house. You can also double check the local laws for constitutes a rentable apartment — many cities keep this information on their websites — and keep this in mind when you are emailing the agent or when you see the property.

Teaser Interest Rates

If you are shopping for a home online, most likely at some point you are going to spot an ad or wonder how much house you can afford, and start looking for a mortgage online as well. Unfortunately, there is a lot of misleading advertising and marketing online, and the teaser rates lenders advertise online may not be real — or at least not available to the majority of people. You apply, and before you know it you are being quoted a much higher interest rate as being the best you can get.

Your best bet here is to exercise a little patience, and get off the computer when it comes time to look for a lender. Get mortgage quotes from your bank or a well-known lender, or ask your real estate agent for their suggestions. Most agents have a trustworthy broker they work with regularly, and as I tell my clients, if my broker didn’t offer good rates I wouldn’t use them.

Use Caution and Common Sense!

After reading about all the leprechauns lurking online, you might think I’m about to tell you not to shop for your home on the Internet — but that’s not my point at all. The vast majority of sellers and agents are honest, but it pays to be on the lookout for these scams. Above all, when searching for a home or a loan online, use common sense and don’t hesitate to do some fact checking on any house you are interested in!

The Internet has revolutionized the housing market, making it easier than ever to shop for a home. As an agent at the forefront of the available technology, I am experienced with not only the benefits, but also the pitfalls to shopping for a home online. To discuss further what you need to look out, don’t hesitate to call me! You can also add my website, www.CoconutPointRealEstate.com, to the list of luxury real estate websites that you know you can trust.

D. Michael Burke, P.A. Keller Williams Elite Realty
Michael@CoconutPointRealEstate.com / www.CoconutPointRealEstate.com