“Scan your favorite newspapers or news websites this April 1, and chances are you’ll see some headlines that look suspicious. Read further, and you’ll probably find that some of those stories are complete hoaxes. After all, it’s April Fools’ Day,” comments the Library of Commerce Magazine on its blog. While the post dates the annual observance of trickery to Renaissance Europe, today’s hoaxes often use modern technology and mind games. And too often, the very unfunny outcomes harm homeowners, homebuyers and home sellers. Here are five of the latest home-home related scams.
1. Deed Fraud
Criminals are impersonating property owners to illegally sell their property. Typically, they’re choosing properties that are unoccupied and potentially even undeveloped land. This means, it can be months or years before the crime is detected. That could occur at a painful or traumatic time for the seller, perhaps due to a job loss or family death.
According to Matt Troiani, National Association of REALTORS Senior Counsel and Director of Legal Affairs, “The scammers may be getting more sophisticated in using technology, including AI, to identify properties to fraudulently sell and to impersonate sellers.”
Tips: NAR has a tip sheet on its website for spotting red flags and recommended practices. Red flags include property significantly below market rate, cash requirements, no for sale sign at the property, among others. Tips include requesting proof of ownership, verifying the seller’s identity and contact information, using a notary at closing, among others.
2. Storm Chasing
“One of the more common scams we hear about involves storm-chasing,” shares Angi Hicks, co-founder of home service platform Angi, (formerly Angie’s List). After a major storm, these individuals go door-to-door offering to inspect your roof and make repairs. They often request a sizable deposit upfront — or even full payment — then either do subpar work or vanish entirely.” When I lived in Florida, locals called these scam artists, ‘Chuck in a truck,’ because they would cruise through hurricane-ravaged areas offering quick repairs.
This can also happen with other natural disasters. Team Rubicon, a veteran-founded emergency support nonprofit, reports that scammers are already showing up at fire-scourged homesites in the Los Angeles area.
Tips: Hicks suggests researching any contractor you choose to have work on your home, checking their credentials and licensing. Ask friends and neighbors for referrals. Review contracts carefully and never pay in full upfront. Get everything in writing! California’s Department of Insurance has a robust web page of additional tips, resources and a hotline for wildfire-impacted homeowners.
3. Model Home Scam
Hicks cites this as the costliest home repair scam she’s encountered. Here’s how it works, she explains: “A contractor might approach you offering an incredible deal in exchange for using your home as a showroom for potential clients. It sounds like a win-win—but it rarely is. They rush through renovations, often cutting corners in ways that aren’t immediately obvious. Everything may look great at first glance, but beneath the surface it’s a different story. Bathrooms might have incorrectly installed ventilation, which can cause mold, improperly sloped shower drains allow for standing water, and tile jobs that crumble months later.”
Tips: “If a deal seems too good to be true, it probably is,” Hicks comments. “Always vet your contractor thoroughly — check licenses, read reviews, and ask for recent referrals. And don’t be afraid to ask detailed questions throughout the project. A legitimate pro will be happy to walk you through the process.”
4. Mortgage Scams
“A fairly new and dangerous threat has arisen for homeowners who have fallen behind on their mortgage payments and may be at risk of foreclosure – opportunistic companies,” writes the Federal Deposit Insurance Corporation on its Consumer Resource Center site. “They often refer to themselves as a ‘foreclosure consultant’ or ‘mortgage consultant,’ and market themselves as a ‘foreclosure service’, ‘foreclosure rescue agency’ or ‘loan modification company.’ They count on homeowners being vulnerable and desperate,” the FDIC warns. They say they can help a homeowner keep their home, refinance or modify a mortgage, repair their credit or postpone foreclosure. “In reality, these ‘options’ are intended to convince you to take the wrong steps so they can take your money and possibly your home.” These strategies come in different packages and can come victims’ way by phone or email. They charge outrageous fees, make unfulfillable promises and offer services someone can easily do themselves for free. “In the end, you are worse off than before, because you have little or no time to save your home, or seek other assistance,” it advises.
Tips: The FDIC offers multiple warning signs of a mortgage scam, including upfront fee demand, unsolicited offers, suggestions to stop making mortgage payments and end contact with your lender, instructions to transfer ownership and others.
5. Solar Scams
“Solar energy is rising in popularity. So are the scams,” warns the Federal Trade Commission in an online Consumer Alert. “Did a salesperson knock on your door and promise free rooftop solar panels at no cost to you? Or say you’ll never have to pay another electricity bill because government programs, grants, or rebates cover your solar installation? It’s likely a scam. While there are some government-funded solar programs for households that qualify, ‘going solar’ isn’t free. Honest businesses will tell you exactly how much it’ll cost to get and install solar panels.”
San Diego-based energy consultant Rebecca Ely is seeing scams like these in her top residential solar market. Echoing the FTC, she reports that homeowners are being told that they can get solar for free from the government. (I see these ads all of the time on social media. Do you?) It’s not true, she declares. “There are programs where you pay nothing out of pocket and you do not have a loan against you, otherwise known as a Power Purchase Agreement, or ‘PPA.’ similar to a lease with a better buyout option.” This is essentially renting the equipment, which the solar provider maintains and owns. “The homeowner simply pays a lower rate for power, a fixed monthly bill,” she notes. The provider keeps the tax benefits and, in many cases, charges the homeowner an annual escalator, (i.e., rent increase). “So no, it is not free and the government is not paying for these systems,” Ely comments. In many PPAs, the homeowner is paying more over a long lease than they would if they’d paid cash for the panels. Sometimes, she says, solar consultants undersize systems to make a quote look appealing, but the homeowner ends up underserved and unhappy down the road.
A related solar scam the energy consultant cites is solar consultants claiming they work directly with the local power company. “We are two entirely separate entities. I often hear, ‘I went solar with SDG&E’ [San Diego Gas & Electric]. No one went solar with SGD&E,” she confirms.
Tips: “A homeowner needs to consider more than price,” Ely cautions: Ask “What does that price include?” It is extremely important to check reviews and have a trustworthy, experienced consultant review everything closely.” She also suggests working with an independent, unbiased and experienced broker. “You want someone who will warn you of all and any potential cons.”
Last Words
Millions of Americans are scammed each year. When it comes to your home — or a home you’re considering purchasing — a scam can be devastating and, in the case of shoddy repairs or remodels, dangerous. Buyer beware today and year-round!
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Interviews were conducted by email between March 31 and April 1, 2025.
Read the full article here
