‘Do Not Approach’: When ‘Uncooperative’ Residents Won’t Allow Buyers To View the Property

In the leafy, bucolic Hudson Valley town of Ossining, NY—where homes can sell for well over $1 million—a four-bedroom house was recently listed for only $175,000.

Why so cheap? The listing hinted at one possible reason, warning potential buyers not to approach the house because “existing occupants are not cooperating.”

“Don’t go there and knock on the door,” warned the listing agent, Noel Cohen of Cohen and Cohen Realty. “The sellers have made it clear that if people just show up, they will get cursed out.”

The homeowners had stopped paying their mortgage during the COVID-19 pandemic, Cohen explained. With a potential foreclosure looming, they were attempting a short sale.

The listing also made clear that the house was in sorry shape, with active leaks and holes from woodpeckers, carpenter bees, and other “animal infestations.” Additionally, the property was in dire need of a new roof, furnace, siding, central air conditioning, and above-ground oil tank.

Making matters worse, the listing did not include any interior photos—and no open houses were offered.

All of this might make a homebuyer wonder: Is this “bargain” worth the headache? Will these homeowners leave once their house is sold? Cohen insisted they would, but added, “They don’t want to leave ahead of time.”

Yet, after Cohen spoke with Realtor.com®, the listing description was changed to: “Please do not approach property [or] existing occupants until you have an appointment”—omitting the part about uncooperative residents.

Shortly after that, the listing was removed. The home spent only four days on the market.

Uncooperative occupants: ‘Not for the faint of heart’

Most homes for sale come with some problems, particularly if they’re below market rate. But the problem involving a willful or defiant inhabitant complicates matters more than usual.

“Having uncooperative occupants in a home one is purchasing will undoubtedly make it more challenging to run the usual due diligence, and this could lead to a delayed closing or surprises at or after closing,” says Realtor.com Chief Economist Danielle Hale. “I would expect that not every buyer wants to go through this hassle, so sellers in this situation would likely have to offer a price discount or other favorable terms to entice buyers.”

Listings with “uncooperative” inhabitants aren’t as uncommon as you might think. Homeowners facing foreclosure, like Cohen’s clients, might be aggrieved about vacating.

“Foreclosures and short sales are typically very difficult situations, as the homeowners are upset and often in denial about the situation,” explains Florida/California broker Cara Ameer, who has worked with many distressed properties. “When showings are not easy, these kinds of homes are best left for seasoned buyers who aren’t afraid of difficult owners. This is not for the faint of heart.”

If the occupants are renters, they might be unenthused about moving out, too. In fact, about 16,000 listings on Realtor.com include the word “tenant” in the listing, and they come with a 9.7% discount compared with similar properties without this word in the description.

In addition to discounted prices, homes with uncooperative occupants might sit on the market much longer than usual. This listing below in Cambria Heights, NY, for a four-bedroom, single-family home sat on the market a year before finding a buyer, likely due in part to the listing warning, “Do not disturb tenant.”

This listing for a four-bedroom, multifamily home in St. Albans, NY, cautions, “Uncooperative tenant on 1st floor. Please do not approach or disturb the tenant.” It’s no steal, either, at $800,000.

And just in case you might miss the warning on this $600,000 Oakland, CA, property, the listing puts it in all caps: “DO NOT DISTURB UNCOOPERATIVE TENANTS.”

These listings are often a deal, but Ameer warns, “If it sounds too good to be true, it usually is.

“When buyers see what looks like a deal online, I coach them through what buying something like this will entail, and they usually come around that there are better options out there,” she adds.

What you need to know about occupied homes

“If I were representing a buyer interested in a property with such complications, I would advise them to proceed with caution,” warns Devin Kay of the Exclusive Group at Douglas Elliman, who has dealt with reluctant sellers. In most cases, a judge would eventually have to force the sale.

Jameson Tyler Drew of the Anubis Group, who once owned an eviction firm, tells just how dark these types of situations can get.

“I’ve been shot, stabbed, and physically assaulted multiple times,” he says.

As an agent, Drew says he would usually stick to doing a drive-by showing for the interested buyer “from the safety of my car.”

Have lots of cash—and be prepared for a legal battle

If you’re determined to forge ahead with a short sale, foreclosure, or “deal” property with difficult occupants, the pros advise that you have cash on hand as the process will likely entail a legal battle.

“It can take quite a long time to get rid of people who are staying there because courts are backlogged,” explains Los Angeles real estate attorney David Almaraz.

“You have to assume it is going to be costly to get [reluctant occupants] out,” agrees attorney Bruce Ailion, of Re/Max Town and Country. He also advises securing a property once you do get in—as some tenants will eventually find their way back inside.

He once spent a year in a legal battle with an evicted owner who broke back into his former house three different times. Ailion had to hire a full-time security guard to watch the house until it was sold.

Additionally, a short sale comes with its own set of issues given that the bank can scuttle any deal it doesn’t like, and mortgages may not be possible to get.

“A buyer interested in pursuing a short sale should be prepared for uncertainty, and there are no guarantees,” says Ameer. “The buyer needs to make sure that the kind of loan they are doing is a match for the property, as well as their ability to obtain insurance. If the home is in obvious disrepair, that may not be a fit for traditional conventional, FHA, or VA loans.”

Also, short sales tend to happen with neglected properties, so be prepared for some work.

The risks of an occupied house

Another byproduct of reluctant occupants is that some might take out their frustrations on the property.

“You have to assume, when you get the property, there may be considerable damage, and then you need to factor that into your offer,” says Ailion. “I tell buyers that when you eventually get possession and open the door, you may find Christmas morning—or Halloween night.”

Branden Rivero, who deals with distressed properties in Florida, recently encountered the latter when he bought a property he couldn’t get in to view because of uncooperative owners.

By the time he got inside, the house was destroyed, including a wall that had a message for him: “HA HA” painted in black.

They “started putting concrete down the drains, ripping off electrical wiring, putting holes in the walls, and splattering black paint throughout the property,” Rivero recalls.

Being a professional flipper, he wasn’t fazed. But he suggests the average buyer who wants a deal should stick to properties that are “a little outdated.”

Drew’s main advice is to do a “cash for keys” transaction with hostile occupants, where they are paid off to leave.

“Money talks,” he says. “Even the most hostile tenant may change their mind when given the proper financial incentive.”