Real Estate Fraud: Exaggerating with the Price
March 30, 2017
January 27, 2023
Exaggeration in real estate prices offered by real estate companies is one of the most prominent cases of real estate fraud that a buyer can face in the Turkish real estate market. In this article by Turkey Dream Apartment - Kamiran, we will explain to our valued customers the most important points that must be paid attention to before falling into the trap of exaggerating the price of the property and paying large sums of money for real estate at a low price.
How is real estate fraud by exaggerating the price?
Construction companies adopt the principle of unified price, in the sense that the client and the real estate companies that play the role of mediator receive the same price of the property from the entity responsible for managing the sales of the project.
However, when projects are presented by marketers, whether individuals or real estate companies, they increase the price of the property to raise the percentage of profits that they can obtain.
You may think that it seems logical, as real estate companies will provide additional services and facilitate the sale process to the buyer, and therefore this increase is due, but, if you know that there is a good profit margin that the intermediary company gets from the construction company if the sale process takes place through it. That is, there is a fixed percentage It is approximately equal to 3% of the property price in most projects, which is considered a commission for the real estate broker based on the original price determined by the authority responsible for the property. Therefore, the large increase in the price of the property over the real price is an illegal increase, so that the profit is a commission from the construction company in addition to the increase that the company collects from the investor, and this method is considered one of the forms of fraud and real estate fraud that we notice in the Turkish real estate market, especially in the ownership transactions with Aliens.
The principle is that the real estate company or the real estate broker informs the investor of the real price without any increase and leaves the customer free to decide who he wants to deal with. These are the simplest rights that the investor should enjoy. He has the right to ask about the price and information related to the project and to obtain correct and accurate information. He also has the right to review this information by the concerned authority, then choose the most appropriate and economical method for him.
Fraud by exaggerating the price often coincides with evasiveness in providing real information about the project. Whoever resorts to changing the price usually refuses to give the real name of the project or its exact location in order to prevent the customer from checking the information given and knowing the deception he was exposed to.
What is the seriousness of real estate fraud by exaggerating the price?
The relationship between the real estate company and its customers is a long-term relationship based on mutual trust and reassurance that the company provides the best service and the best price for the benefit of the customer. In the event that it turns out otherwise, and the customer finds that the numbers are different from the truth, then he will definitely not return, and thus the company will have lost a customer, and with him a reputation and reliability that is difficult to restore later.
On the other hand, if the client finds that the information given by the real estate broker is correct and accurate, this transparency will generate great confidence in its value more than all material profits. The customer will undoubtedly return to the reliable source and the safe party that understands his needs and desires and realizes that correct knowledge is a basic right for any customer.
Why does an investor need a real estate company?
You may think that it is safest to deal with the construction company directly so as not to fall victim to the exaggeration of the price of real estate in Turkey, but the presence of a reliable real estate broker with long experience in the real estate market is very important, especially in cases of ownership by foreigners, for the following reasons:
The trusted party will not increase the price of the property, but will provide all the necessary information so that the customer is sure of all the numbers and specifications given, and thus guarantees that there is no possibility of deception and fraud.
The real estate companies, the most important of which is Kamran, offer a package of distinguished and necessary services to complete the purchase process in a proper legal manner, such as: translation and certification services, real estate, legal and investment consultancy, ensuring all property specifications, the correct conduct of the sale contract, obtaining the title deed of the property and other procedures that may It constitutes a major obstacle for the investor in the event of buying from the construction company itself