Fight fake listings

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The excitement is in the home, not the loan.

In the digital age, the real estate industry has undergone a transformation, with online platforms becoming the go-to place for buyers and sellers to connect. But with this convenience comes a dark side – the rise of fake real estate listings.

Late in May, Maryland high school seniors decided it would be hysterical to list their school on Zillow as a “nice, half-working jail”. According to Inman News, their listing highlighted the school’s spacious kitchen, private basketball court, private study, multi-use turf field and 100-space parking lot for a potential buyer’s luxury cars. However, the school’s ongoing sewage and pest issues pushed them to appraise their school at the bargain-basement price of $42,069.

While the prank was innocent enough in nature, it attracted a variety of interested bidders who could have been swindled by more savvy and nefarious con artists

Now, Zillow claims to catch most fake listings before they go live, but some slip through like the case of Kelly Moss — a Georgia woman who turned herself into the local Sheriff’s Office for scamming renters on Zillow out of almost $8,000 in so-called transaction fees.

Red Flags

According to a Zillow spokesperson; there are some red flags to watch for:

A requirement to pay upfront fees
A requirement to share sensitive information
Solely offering virtual tours
Same listing, different name
A price that’s too good to be true
Insisting you don’t use an agent

As real estate professionals, here’s what we can do as outlined by Inman and the NAR.

Use AI systems that can detect and flag fake property listings based on patterns or inconsistencies in the data. You should understand that this technology isn’t exact, so additional verification needs to be conducted.
Verify the identity of the seller or buyer to ensure they are legitimate as well.
Conduct thorough due diligence, including previewing and inspecting the property as well as reviewing legal documents.
Use Google Lens to see if the property has been or is currently listed.
Review Google Maps to confirm the existence and location of the property.

Build strong relationships by Educating clients and help them be aware of red flags as well. Encourage clients to communicate directly with reputable agents or sellers using secure channels, such as official phone numbers or email addresses. Recommend trusted resources. Provide clients with a list of trusted real estate platforms and websites known for their rigorous verification processes. AND ALWAYS Stress the importance of professional representation emphasize the benefits and security of working with a licensed real estate agent to ensure their interests are protected.

If you have a client or friend who has already been affected, check out the resources down below and most importantly, stay vigilant, educate clients, friends and colleagues by sharing this info!

Resources & reporting

Realtor.com, Redfin and other top portals have similar guides for buyers and renters to avoid scams, and they also have methods for reporting:

Redfin: Potentially fraudulent listings must be sent to Redfin’s customer service team. Consumers can call 844-759-7732 or fill out a customer service web form here. If the potentially fraudulent listing is for the for-sale market, it will also need to be reported to the proper MLS.
Realtor.com: Consumers can report potentially fraudulent listings by clicking the “report this listing” button at the bottom of each listing page.
Trulia: Just like its sister site, consumers can report suspicious listings by clicking a report button on the top right side of a listing page. Renters can also email rentalsupport@zillow.com to flag sketchy rental listings.
CoStar: CoStar has a wide array of portals for the residential and commercial for-sale and rental markets. Apartments.com has a verified listing badge; however, you can report potentially fraudulent listings by calling 888-658-7368 x2 or emailing support@apartments.com. Homes.com has a similar reporting system, with consumers being able to flag suspicious listings by emailing support@homes.com or calling 1-800-431-5509.

If a buyer or renter falls victim to a scam, they’ll also need to contact local law enforcement authorities and the Federal Trade Commission (FTC). The FTC enables consumers to easily report scams using an online questionnaire.