REIWA: Beware of fake buyers

Several REIWA members have reported encounters with fake buyers who waste time and disrupt the sales process.

While no money has been lost, one extreme case led to a police complaint.

Higher-end market targeted

The fake buyer activity predominantly affects the higher end of the market.

The buyers appear legitimate, making it challenging to identify the scam early on.

See LinkedIn post here.

Common scenarios reported

REIWA has identified several recurring scenarios involving fake buyers:

• Two elderly sisters with a supposed large inheritance looking for properties close to each other.
• An elderly man with a younger wife making offers in the name of a family trust.
• An older man viewing high-end properties with a younger girlfriend.
• A “wealthy” non-resident planning to move to Australia and buy multiple properties.

Fake buyers’ delaying tactics

After making an offer, these buyers use various excuses to delay the deposit payment, with no intention of completing the purchase.

Their motivations remain unclear but may include enjoying the attention, pretending to be wealthy, or simply wasting time.

Limited recourse

REIWA has consulted with DEMIRS, which has not received any reports of fake buyers.

Unfortunately, there is little that can be done to prevent this activity. Vigilance is essential, and it is advisable to ask questions or request evidence if suspicions arise.

REIWA: Stay vigilant

REIWA advises members to stay alert and cautious.

If you suspect a fake buyer, take steps to verify their intentions and background to avoid wasted time and effort.

Read the REIWA warning here.

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