Property flip fraud often involves which of the following actions?

Property flip fraud typically involves overstating the value of a property for resale. This practice is designed to deceive lenders and buyers about the true worth of a property, allowing the fraudster to secure larger loans or sell the property at an inflated price. By presenting a misleading appraisal or marketing a property with fictitious improvements, individuals engaged in property flip fraud can manipulate the market, leading to significant financial losses for unsuspecting buyers or investors.

In a legitimate property flip, the focus is usually on buying low, improving the property, and selling high; however, in fraudulent flips, the emphasis shifts to creating a false narrative of value without the necessary investments or conditions that would justify such high prices. This action undermines market integrity and can have broader consequences for real estate markets and economic stability.