Great Lakes Wire

Michigan Attorney General Dana Nessel has issued a consumer alert to educate renters and homebuyers on avoiding real estate scams. The alert, titled "Real Estate Scams – How to Avoid Being Taken in by Fake Listings," responds to recent reports of fraudulent property listings.

One incident involved a Zillow listing for a Florida house priced at less than three percent of its actual value. The supposed agent targeted first-time homebuyers without representation and demanded a $4,500 deposit before viewing the property. Another case involved four separate scams using Facebook Marketplace for the same Florida home, aimed at both buyers and renters.

"Purchasing a home is often the single largest expense a consumer will make in their lifetime, and entering a new lease on a rental home likewise represents a huge financial commitment," said Nessel. "Sadly, when the sums reach such heights, fraudsters and scammers are drawn to these markets."

Nessel's alert highlights several red flags identified by Zillow that consumers should be aware of:

- Requests to wire funds or use payment apps like Venmo or Cash App.

- Long-distance solicitations from overseas individuals.

- Requests for verification codes via text.

- Demands for personal or financial information.

- Grammar/spelling errors and sob stories.

The Federal Trade Commission (FTC) offers additional strategies to avoid rental scams:

- Conduct online searches for complaints or reviews about owners or companies.

- Compare prices with similar units in the area.

- Verify properties in person or virtually before signing contracts or making payments.

- Avoid providing personal information without verification.

- Do not pay with cash or untraceable methods like wire transfers.

AG Nessel emphasizes her department's commitment to protecting Michigan residents from fraudulent schemes through awareness campaigns and regulatory enforcement.

Victims of rental or real estate scams are encouraged to report incidents to local law enforcement, the FTC, and the website where the ad was posted. Complaints can also be filed with the Department of Attorney General’s Consumer Protection Team.