Florida homebuyers and sellers are losing more than $7 million each year to real estate scams during the holiday season, according to a new study that reveals the Sunshine State suffers the greatest financial impact from these crimes.
The research from PPS House Buyers analyzed Federal Trade Commission data and found Florida sits 95.6% above the national average for real estate scam reports, which stands at 1.14 reports per 100,000 residents.
The study shows the holidays create a perfect storm for scammers who exploit buyers' urgency to close deals before Christmas. Common scams include fake rental listings demanding upfront deposits and wire transfer fraud at closing.
"The holidays create the perfect storm for real estate scams, as buyers feel pressure to close before Christmas, and scammers exploit that urgency with deals that seem too good to miss," Joel Medrano said.
Medrano is CEO of PPS House Buyers, the company that conducted the research.
"It's concerning how some states with fewer reports still see victims losing enormous sums of money. In Wyoming and North Dakota, the average losses exceed $75,000 per incident, which can be devastating for families," Medrano said.
The research found that while some states report fewer incidents, the financial impact per victim can be devastating. In Wyoming and North Dakota, average losses exceed $75,000 per incident.
Red flags include deals that seem too good to be true and pressure to act quickly. To protect yourself, experts recommend verifying you're working with legitimate parties, conducting in-person property viewings, and never sending money without proper verification and a signed contract.
"Anyone involved in real estate transactions should verify all parties through official channels, never wire money based on email instructions alone, and be especially cautious of deals that seem unusually urgent or pressure you to act quickly," Medrano said.
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