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5 Scams Every New Homeowner Should Know About
Posted by : Moneek-2
Buying a home is a huge milestone—but it can also make you a target. Scammers often go after new homeowners because your information becomes more visible through public records, and you’re likely juggling unfamiliar processes. Knowing what to watch for can save you money, stress, and a lot of headaches.
Here are five common scams—and how to avoid them.
1. Wire Fraud During Closing
This is one of the most dangerous and costly scams.
Scammers pose as your lender, title company, or real estate agent and send fake wiring instructions—often via email. If you send your down payment to the wrong account, it can be nearly impossible to recover.
How to avoid it:
- Always verify wiring instructions by calling your title company directly using a trusted number
- Never trust last-minute changes sent by email
- Be cautious of urgent or high-pressure messages
2. Fake Utility or Service Providers
Shortly after moving in, you may get calls or visits from people claiming to represent utility companies or home service providers.
They might demand immediate payment or try to sign you up for unnecessary contracts.
How to avoid it:
- Contact utility providers directly using official websites or phone numbers
- Don’t make payments on the spot to unsolicited visitors
- Verify any service before agreeing to it
3. Home Warranty Scams
You’ll likely receive official-looking letters urging you to “renew” or “activate” a home warranty—often designed to look urgent.
Some are legitimate, but many are misleading or outright scams.
How to avoid it:
- Read all mail carefully—look for fine print and vague language
- Research the company before paying anything
- Know that you’re not required to purchase a warranty
4. Property Deed or Title Scams
Some companies offer to send you a copy of your property deed—for a fee. In reality, this document is typically available for a small cost (or free) through your local government office.
More serious versions involve attempts to fraudulently transfer ownership of your property.
How to avoid it:
- Access property records through your county recorder’s office
- Be wary of unsolicited offers related to your deed
- Consider signing up for property fraud alerts if your county offers them
5. Contractor and Repair Scams
New homeowners often need repairs or upgrades—and scammers know it.
They may offer low-cost services, request large upfront payments, or disappear after starting the job.
How to avoid it:
- Get multiple quotes before hiring
- Check licenses, insurance, and reviews
- Avoid paying large sums upfront
- Use written contracts with clear terms
Most people you’ll work with as a homeowner are legitimate—but it only takes one bad actor to cause serious problems. Staying cautious, verifying information, and trusting your instincts can go a long way.
When something feels rushed, unclear, or too good to be true, it’s worth slowing down and double-checking. A little skepticism can be one of your best tools as a new homeowner.
