13 Real Estate Horror Stories & How to Avoid Them
This article is part of a larger series onHow to Become a Real Estate Agent.
While real estate can be an exciting and fulfilling career, it also comes with major challenges—from faulty contractor work to unreasonable clients, major home repairs, unrealistic expectations from partners, and even terrifying surprises. Real estate horror stories can happen to the best and most experienced agents. We gathered 13 of the scariest, most nerve-wracking real estate agent horror stories so you can learn how to avoid these situations in your everyday dealings with clients and other real estate professionals.
1. Leaky Ceiling During the Final Walk-through
The final walk-through before closing can be a relief for agents, buyers, and sellers. However, it can be especially stressful if issues arise right before closing. Depending on the terms of the deal, many buyers and their agents have not visited the home since the initial showing, and they want to make sure that the home is ready for them to take possession.
Real estate agent and licensed attorneyBonnie Heatzigof South Florida experienced a real estate nightmare firsthand during the final walk-through of a $2 million waterfront home. The buyers were visiting from Austria, saw her listing in the local paper, and immediately wrote up a contract. The sale was going smoothly until the final walk-through on a stormy morning.
As the buyers and Bonnie conducted the walk-through, she noticed a stream of water leaking from a 33-foot ceiling behind them. Before she could even mention it, another leak sprung, and another, until water was streaming down the sides of her face and bouncing off the top of her head. Fortunately, they were able to hold money in an escrow account until the roof was repaired, and the closing was still completed successfully.
How to Avoid
Although real estate inspections can be waived during a real estate transaction, agents should always encourage clients to hire a reliablelicensed real estate inspectorbefore moving forward with a purchase. The inspector should examine all portions of the property, including the roof and ceilings, for any water damage or leaks and provide a detailed report. This way, you can be aware of any potential issues and advise your clients appropriately.
Clients especially love when their agent is able to recommend highly trustworthy professionals to them. As you work with home inspectors, appraisers, and mortgage lenders, start building a list of client referrals and keep track of them in areal estate CRMlike Pipedrive. It provides visual pipelines,third-party integrations, and makes it easy to track your communications with partners, leads, and clients. Plus, you can try Pipedrive for free for 14 days.
2. Demolition Mix-up Causes Real Estate Agent Horror Stories
Sometimes mistakes happen that are completely outside a real estate agent’s control. For example, one dayMartin Oreficewas preparing to show an apartment to a prospective tenant. When Martin went to the apartment, he was surprised to find a team demolishing the house he was supposed to show his clients. Apparently, the plan was to tear down and rebuild the older house next to theirs, but the demolition company got the wrong address. In the end, his employer ended up getting a beautiful new duplex out of the deal.
How to Avoid
Unfortunately, there is no way to prepare or prevent some real estate agent horror stories like this one. Real estate can be an unpredictable field, and you have to be prepared to solve unusual problems. However, if this does happen with clients, you can do another search for listings and find your clients a new property.
Since Zillow is the top real estate listing website in the U.S., it makes sense to leverage this platform with current clients and for the purpose ofgenerating leads. As a Zillow Premier Agent, you are the exclusive listing agent and regularly receive new, ready-to-purchase buyer leads sent to you automatically. Learn more about becoming a Zillow Premier Agent.
Learn what our experts think about Zillow Premier Agent inZillow Premier Agent Review: Is It Right for Your Real Estate Business?.
3. Unfortunate Neighborhood Features
When youbecome a real estate agentand complete many hours of education, there are some situations you’ll never expect. For example,Zackary . Smigelwas about to show homebuyers a seemingly lovely suburban home. However, his listing clients didn’t tell him that the neighborhood came with a unique feature—a free-roaming, fully plumed peacock.
Even more surprising, the peacock came for a visit at the same time as his showing with clients. Although it was exciting at first, the bird quickly became territorial and started squawking loudly, chasing the visitors around the garden. Zackary was able to sell the house eventually, but he had to do some extra work coordinating viewings around the bird’s routines and speaking to local animal control about humanely managing this colorful friend.
How to Avoid
Whether you are representing a buyer or a seller, plan to visit the property ahead of time or at least get there a few minutes before your clients arrive. As a listing agent, you should get detailed information about the home and neighborhood so that you can be prepared for any unexpected situations like this one. Include specific questions in yourlisting marketing checklist.
If you have to show a home that you’re unfamiliar with or you find unfavorable obstacles like this, give your clients a gentle disclaimer. For example, if you’re bringing a client to a home that has odd choices in interior design, you can say something like, “This home might not be your taste in decor, but let’s focus on the size and layout to see if it’s a good fit for you.”
4. Taking a Risky Insurance Policy
Insurance is an absolutely essential cost for any new homeowner and is often required as a condition of the sale. Real estate agentMarina Vaamondeonce had a client buying a home, but the insurance agent was coming back from vacation the day after closing. The insurance agent advised the buyer to postpone the closing date just one day so the insurance policy and closing would be on the same day.
Unfortunately, the client decided to go against this advice and take possession of the home without insurance for one day. However, the day Marina’s client closed on the home, a terrified deer crashed through the sliding glass doors that led to her backyard. Unfortunately, since her insurance policy had not started yet, she had to pay for the entire repair cost herself.
How to Avoid
Having a good home insurance policy is key for every homeowner. It exists to protect clients in the event that there’s any damage, repairs, or catastrophes that happen at or on the property. Encouraging all clients to find a good insurance policy is one of the most importantreal estate agent tips. Agents can also provide their clients with a list of insurance brokers they’ve worked with, so they can choose the company and policy that best fits their needs.
5. Choose Contractors Wisely
招聘cru授权承包商cial when renovating or repairing a home, whether for a client’s home or an investment property.Mike Laurenziwas planning a flip project and met with a new contractor. When he arrived, the contractor was already inside the house making suggestions. The first thing she said was, “If we move the fireplace from this wall to this side of the house, it will give you a wall to hang the TV on.”
Although this suggestion was true, the fireplace was a large brick fireplace with a chimney going up through the middle of the roof. The investor knew this project was unnecessary and would add thousands of dollars to the budget. However, the contractor seemed to be a good fit, so Mike hired her for the home. Unfortunately, the project ended up going significantly over budget, the contractor left the job before it was complete, and her electrician put 196 holes in the walls to incorrectly run the electrical wire.
How to Avoid
There are, unfortunately, millions of real estate stories like this one. Thoroughly check the credentials of any individuals who work on your property, including contractors,appraisers, plumbers, and electricians. Also, all of these individuals must have insurance policies to protect against issues that arise during the construction process. As you meet and evaluate potential contractors, seriously consider any potential red flags that arise and address them immediately.
In addition, make sure you have a margin when planning any repair or renovation. Plan for a few extra days or weeks to ensure you’ll meet your deadline, especially if you’re listing the property immediately after completing the project.
6. An Unwelcome Resident
Real estate agent horror stories can happen even in high-end homes.Ashley Farrellwas listing a multi-million-dollar unoccupied home, so service providers were given access through a lockbox. Unfortunately, during the process, one of the service providers left an access point open. During Ashley’s first showing, a squirrel scurries across a banister, disappears, and returns a few minutes later to jump on the master bed. Ashley immediately called the homeowner to hire a pest control/animal removal company. However, the owner never made the call.
一周后,阿什利进了回家的板块r showing, but a terrible smell hit her and the visitors immediately upon opening the door. The squirrel had died in this luxury home of over 4,000 square feet, and they weren’t sure where it was. Ashley was worried that the squirrel might still be alive or that there might be another squirrel somewhere, so she searched under surfaces with the handle of a broom. It took over 30 minutes to find the squirrel hidden under a couch. The squirrel was removed that day, but it took many days for the smell to dissipate, even with a whole house deep cleaning.
How to Avoid
Even with the best plans, contractors, and communication, you can’t prevent mistakes from happening occasionally. Although Ashley did the right thing by calling the homeowner, there was a clear miscommunication about having the squirrel removed. Ideally, the homeowner would have confirmed with the agent that they made an appointment and confirmed the squirrel was removed, or the agent would have followed up with the owner. Unfortunately, this miscommunication led to the listing staying on the market for a longer period of time and an expensive cleaning fee.
To learn more about listing luxury properties, readHow to Become a Luxury Real Estate Agent.
7. Frozen Pipe Disaster
买房是许多体育的一个激动人心的里程碑ople, but knowing how to take care of it is extremely important. Massachusetts real estate brokerBill Gassettwas helping a client relocate to another state when he experienced this firsthand. The homeowner left the state shortly before the start of winter and forgot to automatically schedule his oil delivery or prepare his home. Eventually, the heat left home when temperatures were regularly under 32 degrees Fahrenheit.
Bill went to check on the property and immediately heard the sound of rushing water outside the home. As soon as he opened the door, he saw the floor flooded with two feet of water and a waterfall coming from the ceiling that removed the ceiling altogether. In addition, because of the standing water, the home was filled with black mold.
How to Avoid
When you’re representing a homeseller, especially if the owner isn’t actively living in the property, you must ensure that they have a plan to take care of the home until it sells. If you live in a cold environment, it’s best to provide specific information about maintaining a home and preventing problems during winter months.
Another way to proactively prevent these real estate nightmares is by providing your current and previous clients with regular resources about homeownership and proper maintenance, like how-to guides for maintaining your home or checklists for annual maintenance responsibilities. With Canva, you can easily create graphics to share on social media, by email, or even through direct mail. It’s a user-friendly graphic design platform with hundreds of thousands of templates made for real estate. Include specific home maintenance tips for your area, build a strong social media following, and prevent future horror stories. Start using Canva for free!
8. Uneven Expectations & Miscommunications
Real estate investingis an exciting career, but investors and contractors face many potential risks and unknowns.Forrest McCallwas a licensed contractor working as the site superintendent for an extremely run-down property that required an extensive amount of work. On the first day, her team did a massive amount of construction, including floor and drywall work that filled the home with chemical fumes, removed the kitchen and hot water, and left only minimal heat. Near the end of the day, she asked the investor about the housing accommodations, which were extremely common in long-distance projects like this one.
She was then informed that her team was expected to stay in the property they were renovating. In addition, the pandemic prevented them from getting takeout. After spending one night on the property, several of her team members had to get medical attention. The following morning, Forrest called the investor and told him the entire crew would be removed if he didn’t immediately provide them with safe, secure accommodations. Unfortunately, this investment group continued the project with unrealistic expectations, resulting in ongoing supply chain issues and failure to meet due dates.
How to Avoid
There are many common practices in the real estate industry, but you can’t automatically expect your partners, team members, clients, or employees to have the same expectations. It is ultimately your responsibility as a professional to clearly define your expectations and requirements from a project or partnership. Forrest states that this project taught her to always make housing arrangements well before the job actually starts. In addition, advanced communication about deadlines and expectations is required to prevent unnecessary stress.
9. Unforgiving & Irate Clients
Selling a home is an emotional time for your clients, but there is a limit to how you can support them as an agent.Karyl Allen, a Virginia Realtor, was listing a property as usual, scheduling an open house, and following her normal routine of advertising the open house in the newspaper. The sellers originally approved the idea but changed their minds based on privacy issues. However, the request came too late, and the ad couldn’t be removed from the paper.
Karyl’s team leader advised the clients to put a note on the door stating that the open house had been canceled—a relatively common solution. Unfortunately, the homeowners were extremely dissatisfied with this response and canceled the listing agreement. When Karyl went to their house to remove the lockbox and return their key, they screamed at her and insulted her repeatedly. She eventually told them she needed to leave and stepped around the client.
However, the client still did not allow her to leave in peace. He demanded that she remove the “for sale” sign in the front yard. Karyl informed him that the sign was installed by a third party and would be removed within 48 hours. As she was getting in her car, the client started shaking the six-foot-tall wooden signpost aggressively to get it out of the ground. When he succeeded, he threw the sign at her car. Luckily, it didn’t reach her car, and she was able to leave the property.
How to Avoid
Although this is an extreme situation, there are plenty of real estate agent stories about clients who are dishonest or display inappropriate behavior. As a real estate professional, you will be working with many people in stressful situations. While you should plan and communicate the ways you are going to market your properties, you can’t prevent mistakes from happening if your clients change their minds or if third-party services have other policies.
如果您遇到一个客户已经失去了温度er, call the police and make a report to protect yourself. In all cases, be prepared to let clients go if their behavior crosses a line. Start by reading our guide onHow to Fire a Client (+ Free Breakup Letter for Agents).
10. A Terrifying Hidden Surprise
All real estate agents know that homes that appear perfect can often have hidden problems. However, in an especially unusual case,Will Coppknew a family who purchased a home that seemed perfect for them. However, soon after moving in, they started to notice strange noises coming from the walls and ceilings at night. They initially brushed it off as normal settling sounds, but it quickly became apparent that something more sinister was going on.
After several sleepless nights filled with unexplainable noises and disturbances, they decided to investigate further. Finally, they discovered a well-hidden room behind one of the walls, with chains hanging from the ceiling and evidence of torture devices scattered throughout. They immediately contacted the authorities and vacated the property for good.
How to Avoid
虽然这房地产恐怖故事不是通讯on, it could have been prevented with a more thorough home inspection. A good quality home inspector should have been able to find a room, even if it was hidden, and prevented this traumatic event and a logistical nightmare from happening.
11. Last Minute Dispute
Real estate is a field that will always present unexpected situations to even the most experienced professionals. In one example,Pavel Khaykinwas working with a real estate buyer. He had helped them find a house they loved, and the closing date was rapidly approaching. Suddenly, on the day of closing, the seller refused to sign the paperwork. It turned out the seller had found a buyer who was willing to pay more than his client’s offer.
How to Avoid
This horror story could have easily been prevented in a few different ways. Pavel admits if they had done more due diligence, they would have found the seller had a history of changing their mind at the last minute in legal transactions. In addition, the seller could have been prevented from causing such a big problem if the contracts and paperwork leading up to the closing date included specific clauses. Make sure to work with a real estate lawyer who knows how to set up contracts that eliminate potential issues like this one.
12. Bad Clients Refusing Good Advice
Successful real estate agentsknow that they are responsible for advising clients to make the wisest decisions, but clients don’t always take that advice.Tyler Seeger of Retirement Beingwas helping a couple find a new home. They had a modest budget and decent credit, but they were unable to be flexible with their requirements. Tyler worked with them for 13 weeks, even though they had extreme reactions to every home they saw, saying the properties were trashy or the agent was trying to “rob” them with homes they believed were too expensive.
At one point, the couple found a house they loved because it had a pool. However, it needed massive repairs, and Tyler adamantly recommended that the clients not buy this house. The couple was dead-set on their ways, so the transaction was completed.
Months later, the woman client called Tyler again in the middle of the night and blamed him for ruining her marriage by allowing them to buy this house. As he had expected, it needed an extreme number of repairs and became a financial disaster. The agent had to block the couple after being harassed, and the couple ended up getting divorced and spending months disputing the house.
How to Avoid
In this case, Tyler’s managing broker had actually advised him to fire these clients after a month or so of failed home showings. Although Tyler was able to complete the transaction without getting personally involved in the legal battle, this situation caused him months of unnecessary stress. One of the primary reasonswhy real estate agents failis a lack of boundaries for unreasonable clients. To grow a thriving real estate business, you must learn how to set boundaries to prevent burnout or find yourself getting harassed.
Additionally, you will inevitably have clients who choose to ignore your advice. Make sure that you are prepared both emotionally and legally by making your advice extremely clear to clients and even having them sign documentation that they are going against your advice.
13. Open the Refrigerator With Caution
Our 13th real estate agent horror story is from Roseann Galvan, who was showing an empty and very clean apartment to her clients. They were especially excited about the kitchen as they were both enthusiastic cooks. There was a beautiful new stainless steel refrigerator, so Roseann and her clients opened it to take a look at the interior.
When they opened it, they found it was full of human hair. Although they all paused in disgust for a few moments, Roseann regained her composure and continued with the showing.
How to Avoid
As previously discussed, it’s best to arrive at home showings a few minutes before your clients. Inspect the property, open cabinets, check the refrigerator and closets, and turn the lights on. This way, if you find an issue, you can appropriately prepare your clients.
However, you may not always have that opportunity. In that case, ask the listing agent about the home’s condition so you can be aware of anything you and your clients will walk into. During the showing, volunteer to be the one to open cabinets and refrigerators first, so you get the initial glimpse. If something is awry behind the door, you can warn them or tell them the condition before they look for themselves.
Bottom Line
Whether you’re anew real estate agentor have decades of experience, there will always be surprises and real estate horror stories that keep you on your toes. The key to these surprises is being able to creatively solve problems and learn from your mistakes as you move forward.