Though the housing recovery is trucking along, that doesn't mean real estate scams have gone away. Home owners have been duped out of an average of $4,000 to $5,000 from scams, but even five-figure losses aren’t uncommon for those who have fallen prey to fake loan modifications and other housing fraud. Highlighted here are four of the most common real estate scams today:

1. Rental scams: Scammers illegally pull online listing information from a home for sale and re-post it as a rental on another site, such as Craigslist. They’ll often ask for money upfront, in the form of a security deposit or broker fee, from prospective tenants. Scammers often advertise the home at a low price and collect application fees from several prospective tenants in order to hold the property for them.

Sometimes buyers are anxious to look for a home and want to get started right away. However, the first step in the home buying process is getting pre-approved for a loan. Before issuing a pre-approval letter, a lender will check a person's credit, income, debt, and assess their overall financial position. From there, the lender can state that you qualify for a loan up to a certain amount and issue a pre-approval letter. A pre-approval letter is a necessity for the following reasons:

Here is an interesting NBC New article about deaths in real properties and how it affects their value. In Michigan, it is not necessary for a seller to disclose a death in the house. The law reflects the idea that someone dying in a house does not affect its value. That doesn't mean that potential buyers are not concerned about it. Now there is a website consumers can check diedinhouse.com. I wonder how accurate it is? Before paying for a search at this site, the first step would be to ask the seller the question outright. Legally, they cannot lie to a direct question. If someone still has doubts or concerns, then I guess the website would be the next step.

Found a house you love and have an accepted offer? The hard part isn’t over yet. I caution buyers to not get too emotionally attached to a property until they have completed a home inspection. In a basic home inspection, the inspector will check the structural and mechanical systems of the house (foundation, electrical, plumbing, roof, furnace, etc.) There are additional inspections for pests, radon, and anything else of special concern. A home inspection is one of the most important steps in the home buying process.