Catfish Sellers Targeting Real Estate Agents
Updated: Feb 2
I field a high volume of both SPAM & SCAMS, so much so that I have created template responses when someone is suspected to be either with how to respond in those situations. Below I'll be going over how real estate agents should deal with catfish sellers, who pretend to be legitimate sellers but who are not.
I recently received a Scam Alert from the Chesapeake Bay & Rivers Association of Realtors:
While some are familiar with catfish buyers, it can be those seeming to sell as well. I didn't see a good article specific to how agents could handle the situation, so I created this one.
How to Spot a Catfish Seller
If selling a home, they're typically unable to meet the Realtor at the home, and will want to sell without a home tour.
If selling land, they'll be unable to grant access to communities with gated entry typically, and won't want to meet at the property, though they may be fine with the agent going by the property alone (I've had this issue occur with me before & thankfully it was caught before a property visit including a roughly 2 hr round trip drive)
Often they'll never want to show their face, whether in person or on live video.
Sometimes they won't want to chat audibly at all.
Sometimes they'll want to communicate primarily via insecure channels like Telegram or Whatsapp.
Sometimes they'll want to communicate primarily via social media, and if doing so, often don't have well-established accounts including no or very limited tags of them by friends.
Sometimes they won't use the name of the seller on the tax records (especially those willing to be met in person not on the site of the property), although they often will, as the name of the seller is public record.
Typically catfish won't attempt to pawn off low-value properties.
How to Protect Legitimate Sellers with Standard Protocols
If you're suspicious that a seller could be a catfish:
Early on in the process, look for warning signs of a seller being a catfish, and if the "seller" doesn't call you like many sellers will, call them if you have their number & invite them to do Zoom sessions or in-person meetings. Any "seller" unwilling to do an in-person or virtual meeting should be highly suspect. Don't compose a listing agreement without 1.
Try to locate the seller online using the contact information that you have on file, the tax records, the address, and the name that you have on file. Try https://thatsthem.com/ & https://www.usphonebook.com/ & do some digging to try to find their picture.
Be sure to request that the "seller" send their license to you before composing a listing agreement.
If the "seller" selects the closing company, be sure to confirm the legitimacy of the company.
How to Prevent a Vacant Property Real Estate Scam: Per Secret Service
Per United States Secret Service Cybercrime investigations guidelines:
Full Document from Secret Service
For more information relevant to catfish sellers and for information focused on catfish buyers, go here.