Buying a home in Long Island is exciting, but new homeowners may be at risk for scams aimed at taking advantage of their unfamiliarity with local processes or eagerness to settle in. To protect your investment, here’s a look at five common scams targeting Long Island’s new homeowners and tips on how to stay safe.
1. Fake Deed Transfer Scams
In this scam, fraudsters send official-looking letters, emails, or calls claiming that new homeowners must pay a fee to receive a “certified” copy of their property deed. These letters often use urgency tactics, warning that without immediate action, the homeowner could face penalties or even lose ownership.
How to Avoid It: The local government (typically the county clerk’s office) maintains deed records, and there’s no need to pay a third party for this information. Verify any requests directly with the Nassau or Suffolk County Clerk’s office if you’re unsure.
2. Property Tax Adjustment Scams
New homeowners may receive offers from companies promising to reduce their property tax assessment for a fee. While legitimate tax appeal services exist, some scammers charge upfront fees and then disappear or file incorrect paperwork, leaving homeowners with fines or penalties.
How to Avoid It: Before paying for a tax reduction service, research the company thoroughly. In Long Island, you can appeal your property tax assessment directly through the county’s tax grievance process without paying any third-party fees.
3. Home Warranty Scams
Scammers may call or send mail to new homeowners, urging them to buy or renew a home warranty policy. These solicitations often appear legitimate, complete with details about the property and urgency to respond quickly. In reality, some of these policies either don’t exist, provide minimal coverage, or charge exorbitant fees.
How to Avoid It: Always verify any home warranty offer with a reputable provider. If you’re interested in a warranty, contact a well-established company directly instead of responding to unsolicited offers.
4. Mortgage Payment Diversion
In this scam, homeowners receive fake notices about where to send their mortgage payments. They might get emails claiming their mortgage company’s bank information has changed or that payment must be directed to a specific account. These scammers often replicate lender branding, making their communication look legitimate.
How to Avoid It: Never follow emailed instructions to change your payment details without confirming directly with your lender. Mortgage companies rarely change payment information, and if they do, they will notify you securely. Contact your lender to confirm any change.
5. Home Improvement Fraud
Some scammers prey on new homeowners who want to make upgrades or repairs. They may offer deals on roofing, paving, landscaping, or interior work, ask for an upfront deposit, then vanish. In Long Island, this can also include “storm chasers” who appear after severe weather, promising repairs they never intend to complete.
How to Avoid It: Always hire licensed, insured contractors and get several quotes to compare. Check reviews and consult with neighbors to see if they have worked with the contractor. Avoid cash-only deposits, and insist on a contract that outlines the payment structure and project timeline.
Tips for Staying Safe as a New Homeowner in Long Island:
- Verify Before You Pay: Whenever someone asks for money or personal information, verify their legitimacy. Trustworthy companies will not rush you into decisions.
- Stay Educated: Check with local organizations like the Better Business Bureau, the Long Island Board of Realtors, or Nassau and Suffolk County consumer protection agencies.
- Guard Your Personal Information: Scammers may gather information from public records, so be careful about sharing personal details with unsolicited callers.
By staying vigilant and informed, you can protect your investment and enjoy your new Long Island home without unnecessary stress. Awareness and research are your best defenses against scams targeting homeowners.
