Tiny home scams: How to keep yourself safe

A tiny home expert is recommending people avoid sales on Facebook Marketplace as police warn of a number of tiny home scams.

On Friday, police reported that Hawke's Bay residents had been targeted by a number of Facebook Marketplace scams - in particular, tiny home, shipping container and portable cabin home scams.

Multiple people had fallen victim to the scams and had either paid deposits or the full price to scammers, police said.

One victim lost $10,000, but other victims had also lost thousands.

Police said in many cases the offenders were based overseas, limiting police's ability to recover the funds.

Some scammers were getting more savvy and using photos of legitimate listings for their scams, Tiny House Hub director Sharla May said.

But she said people would often be quick to share those scams to tiny home Facebook groups to warn others.

May, whose organisation provides free advice for tiny home buyers, has a list of tips to help people avoid getting scammed.

Beware of pressure tactics

Scammers love to create urgency, saying there's "another buyer" ready to grab the deal and pushing people into paying a deposit without thinking. People should never hand over money until they've inspected the tiny house in person and confirmed everything checks out.

Check the ownership

If it's a tiny house, ask for proof of ownership or registration for the trailer in their name. If it's land, request a copy of the title deed. No proof, no deal! You can look this up online (on places like CarJam for tiny homes on registered trailers) and make sure the owner's details match the seller you're dealing with. If they don't, walk away!

Watch out for dodgy payment methods

Platforms like PayPal, Cash App, or Venmo can leave buyers vulnerable to scams. With bank transfers, most banks now alert you if the account name you enter doesn't match the real account holder's name.

Check the photos being used

Scammers often use photos they've nicked from real estate or other tiny house listings. A quick reverse image search can reveal if the same pictures are being used elsewhere. If it looks dodgy, it probably is.

Keep off Facebook Marketplace

Facebook Marketplace and similar sites are a hotspot for scammers. Buyers should stick to verified platforms or deal with sellers who can prove they're legit. If something feels off, report it straight away.

Meet the seller and view the property in person

A genuine seller will have no problem meeting you at the tiny house or land to show you around. If they make excuses or say it's "not possible", run the other way.

Know the market

If a deal seems too good to be true, it probably is. Scammers use super-low prices to lure victims, so it's worth researching the going rates for tiny houses and land to avoid falling into that trap.

Trust your gut

If it feels dodgy, it probably is. Take your time, ask questions, and don't let anyone rush you.

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