Customer Complaints in Real Estate: Types, Reasons and Solutions


Buying or selling a property can be one of the most significant financial transactions in a person’s life. Naturally, customers expect a smooth and hassle-free experience when dealing with real estate professionals. Unfortunately, this isn’t always the case, and customers often encounter issues that can lead to frustration, disappointment, and ultimately, customer complaints. Customer complaints can have a detrimental impact on real estate businesses, leading to lost business, a negative reputation, and potential legal implications. In this article, we will discuss the types of customer complaints in real estate, the reasons for them, and how real estate businesses can address them effectively.

Types of Customer Complaints in Real Estate

Customer complaints in real estate can vary in nature and severity. Here are some common types of customer complaints in real estate:

Communication Issues

Real estate transactions involve several parties, including the buyer, seller, real estate agent, mortgage lender, and attorneys. Communication breakdowns can occur at any stage of the process, leading to frustration and misunderstandings. For example, customers may feel that their agent is not responsive enough, doesn’t keep them informed about the progress of the transaction, or doesn’t answer their questions in a timely manner. This can lead to anxiety and uncertainty, and customers may begin to feel that they are not a priority.

Delays in Closing

Real estate transactions can take time to complete, and customers may become anxious about meeting deadlines. Delays can happen due to a variety of reasons, such as inspection issues, appraisal delays, or problems with financing. Customers may feel frustrated and stressed if the closing date is postponed repeatedly or if they are not kept informed about the status of the transaction.

Unexpected Costs

Real estate transactions can involve several costs, such as closing costs, home inspections, and repairs. Customers may be surprised by unexpected costs that were not disclosed to them upfront or feel that they were misled about the costs involved. This can lead to mistrust and dissatisfaction, and customers may feel that they were taken advantage of.


Real estate agents are obligated to provide accurate and truthful information about properties to their clients. Misrepresentations can occur when an agent provides false or misleading information about a property’s condition, location, or value. This can lead to serious financial consequences for the customer, such as unexpected repair costs, a lower resale value, or even legal disputes.

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Reasons for Customer Complaints in Real Estate

Customer complaints in real estate can arise from several factors. Here are some reasons why customers may file complaints:

Inexperienced Agents

Real estate transactions can be complex, and customers expect their agents to have the necessary knowledge and skills to navigate the process successfully. Inexperienced agents may lack the experience or training needed to handle customer complaints effectively, leading to misunderstandings and unsatisfied customers.

Lack of Transparency

Customers expect transparency and honesty from their agents about all aspects of the transaction, including costs, timelines, and potential issues. A lack of transparency can lead to mistrust and suspicion, and customers may feel that they were misled or taken advantage of.

Poor Customer Service

Real estate transactions involve significant financial and emotional investment, and customers expect excellent customer service from their agents. Poor customer service can lead to frustration and dissatisfaction, and customers may feel that their agent is not acting in their best interests.

Real estate transactions involve legal documents and obligations that must be followed strictly. Any violation of these obligations can lead to legal disputes, which can be time-consuming, expensive, and stressful for customers. Customers may file complaints if they feel that their agent did not follow legal requirements, leading to financial or legal consequences.

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How Real Estate Businesses Can Address Customer Complaints

Addressing customer complaints effectively is essential for maintaining a positive reputation and retaining customers. Here are some strategies that real estate businesses can use to address customer complaints:

Improve Communication

Effective communication is crucial in real estate transactions. Real estate businesses can ensure that their agents are trained to communicate effectively with customers, providing regular updates and answering questions promptly. Establishing clear communication channels and setting expectations upfront can also help avoid misunderstandings and reduce anxiety.

Be Transparent About Costs

Real estate businesses should be transparent about all costs associated with a transaction, including any fees, taxes, or repairs. Customers should be informed of these costs upfront, and any changes should be communicated promptly. Providing detailed estimates of costs and breaking them down can also help customers understand where their money is going.

Address Concerns Promptly

Real estate businesses should have a system in place to address customer concerns promptly. This can involve designating a specific person or team to handle complaints, establishing clear procedures for filing complaints, and providing regular updates to customers on the status of their complaint. Addressing complaints promptly can help prevent them from escalating into more significant issues and demonstrate to customers that their concerns are being taken seriously.

Improve Customer Service

Real estate businesses should prioritize providing excellent customer service to their customers. This can involve providing training to agents on how to handle customer complaints effectively, establishing customer service metrics to track performance, and soliciting feedback from customers to identify areas for improvement. Real estate businesses can also establish a culture of customer service by encouraging agents to put the customer’s needs first and empowering them to make decisions that benefit the customer.

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Case Studies of Real Estate Businesses

Here are some examples of real estate businesses that have successfully addressed customer complaints:

Keller Williams Realty

  • Keller Williams Realty, a large real estate brokerage firm, has a system in place to address customer complaints promptly. Customers can file a complaint online or by phone, and the company has designated a specific team to handle complaints. The team investigates each complaint thoroughly and provides regular updates to the customer on the status of their complaint. Keller Williams Realty has also established customer service metrics to track performance and provide feedback to agents.


  • Redfin, an online real estate brokerage, has a customer service team dedicated to addressing customer complaints promptly. The team includes both customer service representatives and real estate agents, ensuring that complaints are handled by knowledgeable professionals. Redfin also provides a satisfaction guarantee, promising to refund the customer’s fee if they are not satisfied with their service.


  • Zillow, a popular online real estate marketplace, has a dedicated customer service team that handles complaints promptly. Customers can file a complaint online or by phone, and the company has established procedures to ensure that complaints are investigated thoroughly. Zillow also solicits feedback from customers and uses this feedback to improve its services.


Customer complaints in real estate can have a significant impact on real estate businesses. Addressing complaints effectively is crucial for maintaining a positive reputation, retaining customers, and avoiding potential legal issues. Real estate businesses can address customer complaints by improving communication, being transparent about costs, addressing concerns promptly, and improving customer service. By taking these steps, real estate businesses can demonstrate to their customers that they value their satisfaction and are committed to providing a positive customer experience.

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