When good fences make bad neighbors

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Published Date 9/13/2024

When Bugs Bunny once said, “Of course you know: This means war,” it’s doubtful he was talking about home sale sabotage. In the world of real estate, location is everything. But what happens when your location comes with a side of neighbor nuisance?

It turns out that all it takes is one next-door nightmare to turn your dream sale into a living nightmare according to Realtor.com's Julie Taylor. She tells the story of a house flipper in San Antonio, TX, ready to close on a lucrative deal. Suddenly, an overzealous neighbor appears, spreading rumors about non-existent foundation issues and accosting every potential buyer who dares to show interest. It sounds like a bad sitcom plot, but for the flipper, it was a reality that required legal intervention to resolve.

These nightmarish encounters are far from isolated incidents, says Taylor, who adds that they’re becoming increasingly common, often leaving sellers with lighter pockets and heavier hearts. From mooning security cameras to erecting offensive signage, some neighbors seem to have made it their life's mission to sabotage property sales.

Taylor recounts one real estate agent who found himself in a years-long feud with a neighbor who took pettiness to new heights. It involved offensive signs bearing personal insults and declarations of victory that adorned the property line, visible to every potential buyer. “Despite securing a restraining order, the agent was powerless against the neighbor's ‘free speech’ as protected by the First Amendment,” says Taylor. “Miraculously, the situation resolved itself just in time for an offer to be accepted.”

Deception is not beneath some of these troublemakers. Taylor tells of an Atlanta, GA, story where a crafty neighbor spread malicious rumors about former occupants being drug dealers, all in an attempt to secure the property at a bargain price for a relative. While the tactic evidently forced a price drop, it backfired spectacularly when the seller refused to sell to the schemer's family member.

Even more sinister? Taylor says one homeowner found their sales efforts hampered by a suddenly appearing Confederate flag next door, complete with an ominous sign suggesting potential violence. Such actions not only deter buyers but can significantly extend a property's time on the market, often leading to price reductions.

So as the beleaguered homeowner, what can you do? First it’s always best to attempt a peaceful resolution through communication. But when words fail, legal action may be necessary, according to Taylor. “While offensive signs may be protected as free speech, actions that cause harm or financial loss could potentially result in civil liability for defamation or slander.”

While the world of real estate is fraught with challenges, few are as unpredictable and potentially costly as the neighbor factor. As you embark on your next property adventure, remember: sometimes the biggest obstacle to your dream home isn't the property itself, but the people just over the fence.

Realtor, TBWS

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