The Settlement Scam

The Settlement Scam has been around real estate for a long time.  A prospective buyer calls stating they’re about to receive a large settlement from a lawsuit.  They want to move to Austin and buy a big, expensive home.  They need an agent to show them around since they don’t know the cit.  If the agent seems agreeable, it starts to escalate from there.  Since they don’t have the money yet, would the agent mind covering their hotel room while they’re in town looking since it will be a big commission.  They’ll talk about looking at homes all day and eating meals together (guess who they expect to pick up the tab).  If you ask a few probing questions, it falls apart pretty quickly and communication stops.  I know this seems so comically see through, but you’d be surprised at how many new agents will fall for it.  In my early years, I had two people try this on me and another one about ten years ago.  A word for the new agents:  if it sounds too good to be true, it probably is. 

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