So Many New Scams! Here Are Some We’re Seeing Now

I’m so offended by the texts and emails I receive which are clearly from scammers.  I don’t want you to be a victim, so let me describe some of them.

At least once or twice a day I get an email labeled “payment notification,” “deposit notification,” “ACH transfer completed,” or something similar with no message, only an attachment. But the attachment is not a PDF or document, it’s a file with the suffix “.htm” or “.html,” signifying that it’s a website. I could be pretty sure that by clicking on that link I would have my computer or iPhone infected with some kind of coding which would open me up to identity theft or worse. Don’t click on any link that’s a website! Another frequent email scam pretends to be from Microsoft stating that my password is about to expire. If I click on the link it will, of course, ask for my password! Here’s a screenshot from my Scam folder where I have been archiving the scam emails I receive:

Text messages are an increasing source of dubious and unsavory contacts. Many of them simply try to start a conversation with a greeting (a particularly clever such text message is shown at right), but the phone number is from a strange area code. Delete those!  If it’s a real person, they will call you if you’ve ignored the text.

Be careful out there!

The ‘We Buy Ugly Houses’ Company, HomeVestors, Is the Subject of a ProPublica Investigative Report

HomeVestors of America is a franchisor of its “ugly homes” concept and now has over 1,100 franchisees, including here in the Denver area. The chief benefit of being a franchisee is the company’s national advertising which you have surely seen on billboards and in other media.

HomeVestors also trains its franchisees on lead generation, which was the subject of a May 11th article by ProPublica, co-published with the Dallas Morning News and Shelterforce.

To quote from the article, “HomeVestors, the self-proclaimed “largest homebuyer in the United States,” goes to great lengths to distinguish itself from the hedge funds and YouTube gurus that have taken over large swaths of the real estate investment market. The company says it helps homeowners out of jams — ugly houses and ugly situations — improving lives and communities by taking on properties no one else would buy. Part of that mission is a promise not to take advantage of anyone who doesn’t understand the true value of their home, even as franchisees pursue rock-bottom prices.”

Pro-Publica’s investigation, which included “interviews with 48 former franchisees and dozens of homeowners who have sold to its franchises” found that franchise owners “used deception and targeted the elderly, infirm and those so close to poverty that they feared homelessness” if they sold.

One former franchise owner said they were trained to lie.

We in the real estate industry are familiar with various tried-and-true prospects for listing a home, including couples that have recently divorced, or where an elderly husband or wife has just died, but HomeVestors apparently “goes the extra mile” in that regard.

A former employee of an ad agency hired by HomeVestors is cited as saying that the ad agency’s owner bragged about being able to target homeowners who had recently broken a hip, saying that the injury “is effectively a 60-day countdown to death — and, possibly, a deal.”

Click here for the full ProPublica article. And here are some follow-up articles:

HomeVestors Praised ProPublica’s Reporting, Then Tried to “Bury It” The “We Buy Ugly Houses” company held a virtual meeting for its franchises to outline a plan to “minimize visibility” of our investigation.
By Anjeanette Damon, Byard Duncan and Mollie Simon
Help ProPublica Investigate “We Buy Houses” Practices If you’ve had experience with a company or buyer promising fast cash for homes, our reporting team wants to hear about it.
By Byard Duncan, Anjeanette Damon and Sarah Smith

Jeffco Sheriff Warns About Sharp Increase in Scams Against the Elderly

Posted on the Jeffco Sheriff’s “Behind the Badge” blog on May 15, 2023

In the last 60 days, we have taken 24 reports of elder fraud, involving victims age 70 or older. This is a 41% increase from the previous 60 days. Our victims are not numbers, however; they’re real people. People like Susan, who was victimized on April 21st, and whose name we have changed to tell her story.

Susan, 76, got a call from a man claiming to work for an Internet provider. He told her that while he was checking her Internet speed, he noticed she had a $500 credit on her account for services she was entitled to but did not use. He instructed her to get on her computer and when she did, a page was already open that she did not recall opening. The caller told Susan she had accidentally hit a button that selected a refund of $5,000 instead of $500. The caller then told Susan he would lose his job if he didn’t get the extra $4,500 back.

The caller instructed Susan to withdraw $4,500 from her bank and purchase nine $500 gift cards. He stayed on the phone with Susan while she went to the bank and two separate stores to purchase the gifts cards. During the call, Susan asked him several times if he was scamming her. He said no. Once she had the gift cards, the caller instructed her to tell him the gift card numbers and security codes. Susan did. After the call ended, Susan tried calling his phone number back but the number was disconnected.

Unfortunately Susan was scammed for $4,500.00. Could the same happen to your parents? Your grandparents? Even you?

Please talk to your loved ones about scams. Think of how many scam calls, emails or texts you get in a week, and you may not even be targeted like older adults are. Elder fraud is one of the more common and frustrating financial crimes. Oftentimes, victims are not able to recover their hard-earned money. And oftentimes, we are not able to identify suspects who hide behind layers of fake identities and cloned phone numbers.

Scams come in many forms, but how we should respond to them is the same:

> Do not answer calls from unknown numbers. If it’s important, they’ll leave a message.

Do not provide personal information on the phone or in an email or text message to anyone you do not know. Personal information includes date of birth, social security number, credit card numbers, and bank account information.

> Do not withdraw money, send money, purchase gift cards, or make other financial transactions for someone you do not know.

> If you suspect it’s a scam, end all communication – hang up the phone or delete the email or text message.

> If you have been scammed or your personal information has been used without your knowledge or permission (for example, a new credit card arrives in your name), report it to local law enforcement immediately (and cancel the card!).

One of the best ways to help protect your older loved ones from being scammed is to talk to them about common scams and how to avoid them. For more information, visit https://www.jeffco.us/985/Scams.

Do Agents Inflate the Cost of Buying or Selling a Home with ‘Junk Fees’?

This week’s topic is inspired by an article I read on BusinessInsider.com last week with the catchy headline, “Real estate agents are tacking ludicrous ‘junk fees’ on to every home purchase.”

The article acknowledges that there are many legitimate fees — including title insurance, which is absolutely necessary to protect both the buyer and seller of a home. In Colorado, unlike some states, it’s common for title insurance (the second largest expense after agent commissions) to be deducted from the seller’s proceeds rather than added to the buyer’s costs.

Other necessary expenses paid at closing and not levied by the buyer’s or seller’s brokerage include, for the seller, the fee to record the release of lien for any paid-off mortgage, HOA transfer fees, escrow for the final water bill, half the settlement fee to the title company (typically $300-400), and property taxes for the current year pro-rated to the date of closing.

For the buyer, fees are levied for the buyer’s half of the settlement fee mentioned above, and for recording documents with the county clerk. If the buyer financed the purchase with a loan, there are fees levied by the lender, such as processing & document preparation fees, origination fee (“points”), pre-paid interest from the date of closing through the end of that month, and appraisal (if not paid earlier). In addition, the buyer will be debited at closing for their homeowner’s insurance policy plus 3 months’ escrow of same, and 3 months’ escrow of property taxes.

All of the above are not junk fees, but necessary fees to close on the sale or purchase of a home.  It should be noted that the contract to buy and sell could include provisions moving some of these fees to one side or the other of the transaction. For example, the buyer might offer, in order to win a bidding war, to pay the HOA transfer fees, the full settlement fee, and/or the cost of title insurance. Once I saw a buyer offer to pay the property taxes for the full first year of ownership instead of the seller crediting the buyer with his/her pro-rated share.

So, if all those are necessary fees, what are those “junk fees” complained about in the BusinessLeader.com article? It’s a single fee which some agents began charging their clients years ago. It’s shown on the settlement statement as an “administrative fee.” 

Basically, it’s a transaction fee which larger brokerages in particular began charging their agents to bolster their profits. It could be a flat fee like $300 or it could be a small percentage of the sale price. This fee is deducted from the agent’s share of the commission, but agents are allowed to pass that fee on to their clients, which many have chosen to do. That’s what the article was complaining about, not multiple “junk fees.”

Of course, buyers and sellers, upon signing a listing or buyer agency agreement with their agents, could negotiate not to pay this fee, just as they could negotiate a lower listing commission. But, as you can imagine, this fee slips through without most clients noticing or objecting to it. Myself, I never propose charging my clients for this fee. Call my broker associates or me if you don’t want to pay any junk fees for buying or selling a home.  You can reach any of them on their cell phones by calling 303-302-3636.

Half-Duplex Overlooking Standley Lake with Mountain Views Just Listed by David Dlugasch

This half-duplex at 8581 Jellison Street is a patio home, requiring no exterior or grounds maintenance by owner. Snowfall over 2 inches is cleared by the HOA up to the covered porch and garage. On the top floor it has both a primary suite and guest suite, both with ensuite bathrooms and walk-in closets. In the basement is a third bedroom with egress window and ensuite bathroom. The interior was entirely repainted prior to listing, and all new carpeting was installed. This home is move-in ready, for sure! The exterior will be repainted this summer by the HOA. In addition to its awesome views of Standley Lake and the foothills (including Longs Peak), this home is adjacent to a pedestrian/bike path adjacent the Highline Canal. It also has the largest backyard (maintained by HOA) in the subdivision. You can view a narrated video tour below or at www.ArvadaHome.info, then come to David’s open house Sat., May 13th, 11am-1pm.  Or call David at 303-908-4835 for a showing.

On the MLS, a Half-Duplex Is No Longer a ‘Single-Family Home’

The single-family home that David Dlugasch listed this week, a half-duplex, will not be found by buyers searching the MLS for single-family homes, thanks to a big change made in January 2020, when our MLS began conforming to a standardized set of property descriptors which all MLSs were expected to adopt.

Under the new system, a duplex must be listed under the “Multi-Family” Sub-Property type, with  “Duplex” under Property Structure. This replaced the earlier system, which had “Single-Family Attached” as well as “Single-Family Detached” as property types.

You can search by address and find the listing, but most people searching for homes are unlikely to include “multi-family” in their search criteria, even though they would love this single-family home if they saw it.

Finalists Announced for Home Electrification Prize

The Department of Energy (DOE) has announced 6 finalists in its Equitable and Affordable Solutions to Electrification (EAS-E) Prize.

Although administered by the National Renewable Energy Laboratory (NREL) here in Jefferson County, none of the finalists were from Colorado. Two were from California, and one each from New York, Oregon, Ohio and Nevada.

Two of the finalists focused on solutions which eliminated the need to upgrade a home’s electrical panel. The New York finalist’s plan focused on allowing the occupant to remain in the home during the conversion process. The Ohio finalist focused on cold-weather conversions.

Click here to read the full article on probuilder.com.

Price Reduced on Applewood Tri-Level Backing to Lena Gulch

  This well-maintained brick home at 13065 W. 15th Pl. is now listed at $725,000. Take the video tour by clicking on the thumbnail below or at ApplewoodHome.online, then call your agent or listing agent Jim Swanson at 303-929-2727 to see it in person.

Emissions from EVs Depends on the Source of Your Electricity

Before I bought my first electric vehicle in 2012, I told myself, “I don’t want to switch from burning gas to burning coal,” since coal at the time was the biggest portion of my electric utility’s fuel mix. I went ahead and bought my 2012 Chevy Volt, because I installed enough solar panels on my home to get all my electricity from the sun. Since then, I have bought three Teslas and sold one (my RWD 2014 Model S to friends in Arizona).

Then I learned why EVs have lower emissions than gas-powered cars, even if the fossil fuels represent 100% of the utility’s fuel mix. The reasoning is reflected in this graphic from http://www.FuelEconomy.gov:

The gist of the graphic is that only 16 to 25% of the energy in gasoline goes to propelling the vehicle. The rest is basically waste energy, 68% to 72% of it engine losses such as heat. By contrast, roughly 90% of the energy in electricity goes to move an EV.

That differential in fuel efficiency is at the heart of why EVs are more climate- and pollution-friendly than gas-powered vehicles can ever be.

IRC Standardizes Building Code for Tiny Homes

Cities, towns and counties typically base their building codes on the International Residential Code (IRC), which is collaborating with the Tiny Home Industry Association (THIA) to standardize the codes related to tiny homes used for permanent occupancy, whether on a foundation or on wheels.

Tiny homes are increasingly being adopted as an affordable means of housing the homeless, but have also grown in popularity among those who choose to “live lightly.”  I have toured tiny homes in more than one “green homes tour” in Boulder and elsewhere.

The standards are included in the IRC as Appendix AQ. ICC/THIA Standard 1215 will complement existing tiny house resources developed by the Code Council, including the “International Tiny House Provisions,” “Model Legislation on Tiny Houses,” and a “Guide on Navigating Certification and Regulation of Tiny Houses.” All of these are available on the Code Council’s dedicated off-site construction webpage.

“This new standard will codify existing requirements for the design, construction, inspection, and certification of tiny houses into a single standard while also helping to address identified gaps in available requirements,” said Ryan Colker, Code Council vice president of innovation.

“This joint effort with the Code Council will go a long way in helping to clear the confusion within the regulatory and tiny home builder community,” said Brad Wiseman, CEO and Board Chairman of THIA.