6 Red Flags to Look Out for in a Real Estate Transaction

October 15, 2025

A real estate transaction brings a mix of anxiety and excitement. With all these emotions, it's easy to miss the signs of a scam since you need to keep your eyes on many things at once. The support of a licensed title and escrow company is crucial in cases like this, but knowing what to look for is ultimately the surest way to avoid making a decision you could regret later on.

The Top 6 Red Flags to Look Out for in a Real Estate Transaction

1. Surprisingly low prices: It's not impossible to find the perfect deal, especially in Florida's competitive marker, but you still need to know how to separate a good offer from a potential scam.
   
   Sellers might list a price that's below the building's market value for a number of reasons: maybe they're in a hurry to sell, or they're confident that there will be plenty of potential buyers and offers to choose from. In these cases, you can expect the price to be lower by a few potential points.
   
   The seller's motives might not be as simple if the price is way below the expected range. The property might require major repairs, or there could be undisclosed factors that make its location less than ideal (a rowdy community, flood hazard, etc.)
   
   The flip side of this is a purchase offer with numbers that fall below the property's listing price. This might ring alarm bells in the seller's mind, depending on the buyer's demeanor during the negotiation. If it's a common occurrence, it might also be a sign that you need to review your pricing.
2. The seller is in a rush: Choosing a house is only the beginning, and most sellers are well aware of this. Before closing, all property documents must go through a meticulous evaluation to rule out the risks of fraud, liens, or encumbrances. Likewise, buyers and real estate agents need to inspect the property in person, checking its durability, sturdiness, and any elements that could look different from the photos on display in the listing website.
   
   If a seller wants to rush the process or even sidestep any of the standard requirements (title search, home appraisal, title insurance, homeonwers insurance), you're facing a huge red flag. They might want you to overlook a problem in the title or the property itself.
3. Poor communication with real estate agent: You shouldn't ignore your instincts if you feel uncomfortable with your agent's performance. Real estate agents are meant to put their knowledge at your disposal, helping you navigate the local market and keeping an eye on different parts of the process. You can always look for a different option if your current agent is vague when delivering information or if you're constantly unable to get a hold of them.

4. Sudden changes in the property listing: You need to be extra careful if the property has been removed and relisted several times. On its own, this is not an issue, especially if the property has been on sale for a long time. Now, the biggest concern comes if you see major changes in the property's general information and the photos attached to it. A different price isn't a red flag unless the number is wildly different from the last price range.
5. The state of the neighborhood: Knowing the property's general location is one thing, but living in that specific area is a completely different matter. Be sure to keep an eye on the neighborhood during your property inspections and don't be afraid to ask more specific questions about the community, climate, criminal activity, public services, etc. If you see other "For Sale" signs in the property's vicinity, it's worth taking a step back until you get to the root of the problem.
6. Ownership discrepancies: Many of these discrepancies are easy to spot when you have the technology of a real estate company to conduct the title search. Missing information, mismatched names, an unclear chain of title transfers, and other inaccuracies require a closer look at both the seller and the property as a whole.
   
   There are other things to look into: Your seller should be open to in-person negotiations, even if most of the communication is done via phone/email. Don't make any payments if you can verify that the seller has the standard permits and mortgage documents. This also applies to instances where the homeowner's location doesn't match the address listed in the county's tax records.

Avoid the Worst Red Flags in Your Real Estate Transaction

Many of the red flags mentioned above can be spotted with the support of a title and escrow professional. We can help you identify which issues can be fixed and which of them are clear signs that you should quit while you're ahead.

Key Title & Escrow provides specialized escrow and closing services so you can feel at ease at each stage of your real estate transaction. We offer all the services you need to avoid financial losses, from comprehensive title searches to a strong communication system to keep you informed about the smallest change.

Our staff also has the expertise to bring quick, effective solutions to any of the problems that might arise along the way, giving you the counsel and resources you need. Key Title & Escrow helps you with the most important parts of the process, so you don't have to jump between different title and escrow services to meet all the clauses in your escrow agreement.

Call (305) 235-4571 or toll-free at (800) 547-0006 for more information. You can also get in touch with us via the website's contact form, and we'll be happy to help you.