Realtor Horror Stories & How to Find a Realtor You Can Trust

After the Joy Cotto scandal made headlines—where dozens of North Carolina families were left with broken promises, unfinished homes, and no clear way to recover their money—it’s clear just how dangerous a bad real estate agent can be. But here's the thing: you don’t need to be the victim of outright fraud to lose a fortune.

Most homebuyers don’t fall into elaborate traps and fraudulent schems. They get steered in the wrong direction by someone they thought they could trust. A realtor who tells them to skip inspections. Waive contingencies. Go thousands over asking without solid justification. None of it is illegal. But it’s reckless, costly, and far more common than you'd think—especially in fast-moving markets like Texas, Florida, and California.

Some agents are outstanding. Others are simply good at marketing themselves. And a small but dangerous few are willing to bend the rules—or break them—to close a deal.

So how do you tell the difference?

Let’s walk through what you need to know—starting with the nightmare stories that prove just how bad it can get.

Real Estate Horror Stories: When Things Go Beyond Bad Advice

The Joy Cotto Scandal: Homes Promised, Dreams Shattered

In North Carolina, a realtor named Joy Cotto was recently suspended after it was revealed she had been selling lots for custom-built homes through her husband’s construction company—despite the fact that he wasn’t a licensed builder. Families paid massive deposits, some over $300,000, and were left with little more than a few rotting walls.

One of those families was Courtney Hicks and her husband, who put down $320,000 on what was supposed to be their dream home in Iron Station. Instead of a house, they ended up with two partial walls of wood that eventually rotted due to exposure. No inspections, no updates—just a broken promise and a financial hole. Hicks said the couple even had to pay rent elsewhere during the ordeal, compounding their financial stress.

Cotto promoted the home builds through her husband Mario Cotto’s unlicensed company, Monarch Custom Homes, using her license and professional credibility as a realtor to build trust with buyers. Many clients say they were never told Mario wasn’t a licensed contractor and were under the impression that everything was being done legally and professionally. But when progress stalled, they found themselves in a legal gray zone—their deposits gone, their homes incomplete, and little recourse beyond formal complaints.

In total, at least 21 families have filed complaints against Cotto, leading to mounting public pressure. While her local Realtor association only issued a fine and required ethics training, the North Carolina Real Estate Commission finally stepped in and suspended her license for two years starting in May 2025. During that time, she cannot practice or apply for reinstatement until May 21, 2027, and even then, she would have to restart the licensing process from scratch.

What makes this case particularly disturbing is that none of the disciplinary actions came until months after homeowners had already suffered serious losses. For many, the damage was irreversible. And because this wasn't criminal fraud—at least not yet—there's been no restitution.

Florida: Forged Wills and Stolen Property Titles

In Florida, an agent named Jason Valiant forged documents to gain control of a $1.6 million oceanfront property owned by an elderly couple. He used fake powers of attorney and falsified wills to manipulate the title. He had already been disciplined once before. And he still found a way to re-enter the profession.

California: A Pattern of Violations

In California, dozens of agents face monthly disciplinary action from the Department of Real Estate for offenses ranging from misleading ads and unlicensed activity to mortgage fraud and falsified disclosures. These aren’t one-off mistakes—they’re examples of systemic misconduct that often go unnoticed until the damage is already done.

Texas: Theft, Ghost Listings, and Escrow Abuse

Even in Texas, where the Texas Real Estate Commission publicly lists license revocations and fines, there have been repeated cases of agents stealing escrow funds, faking listings, and ghosting buyers after collecting deposits.

In California, dozens of agents face monthly disciplinary action from the Department of Real Estate for offenses ranging from misleading ads and unlicensed activity to mortgage fraud and falsified disclosures. These aren’t one-off mistakes—they’re examples of systemic misconduct that often go unnoticed until the damage is already done.

Even in Texas, where the Texas Real Estate Commission publicly lists license revocations and fines, there have been repeated cases of agents stealing escrow funds, faking listings, and ghosting buyers after collecting deposits.

Those are the headlines that make national news, and everyone thinks they won’t fall for something like that. The fraud is too obvious. The behavior too extreme. They assume they’d spot it instantly and walk away. And maybe they would. But that’s not how most buyers lose money. Because you don’t need to be the victim of a massive scam to end up thousands of dollars in the hole. All it takes is an agent who doesn’t know what they’re doing—or worse, one who knows exactly what they’re doing and just doesn’t care. Careless advice, pressure to move too fast, or silence when something smells off can be just as costly as outright fraud.

The Everyday Red Flags: Legal, But Harmful

You don’t need a full-blown scam to end up in a bad financial spot. In many cases, it’s not fraud—it’s just bad advice. A realtor who doesn’t know the market, doesn’t do the homework, or puts their commission ahead of your bottom line can quietly derail your deal. And the worst part? You might not even realize it until it’s too late.

A few examples:

• An agent tells you to waive your appraisal contingency even though the home is priced far above nearby comps. You "win" the offer, but when the appraisal comes in low, you're suddenly on the hook for a massive gap between what the lender will finance and the purchase price. Now you need to come up with the difference in cash—or risk losing your earnest money and the deal altogether.

• You’re advised to waive your inspection contingency, only to find major structural issues after closing—issues that would have been discovered with a $400 inspection. And now you’re staring down a $50,000 bill to fix a foundation issue you didn’t know existed. The seller’s long gone, the deal is closed, and you’re stuck footing the entire bill.

• Your agent encourages you to offer over asking without providing a competitive market analysis to justify the price. You overpay by tens of thousands of dollars because you trusted their word.

• Your agent is also representing the seller, but doesn’t fully explain what dual agency means or how it affects their ability to negotiate on your behalf.

• Your agent recommends their "preferred lender" or "preferred title company" without disclosing that they’re receiving a referral fee or business kickback in return.

None of these scenarios are illegal on their face. But they all expose the buyer—you—to unnecessary risk, stress, and financial loss. And they’re all avoidable with the right agent.

What Makes a Good Real Estate Agent?

A good realtor does more than open doors and write offers. They protect your interests. They educate you about the process. They push back when something doesn’t feel right, even if it means losing a deal. They’re transparent, available, and informed. And most of all, they earn your trust by showing you they care more about your outcome than their commission.

But you won’t find that out from a business card, a Facebook ad, or a slick Instagram profile. You have to ask the right questions—and know what to look for in the answers.

That’s why we created this resource: Questions to Ask Before You Hire a Realtor. It covers everything from local market knowledge to negotiation style and communication expectations. It helps you go beyond surface-level charm and find out if the agent actually knows what they’re doing—and if they’re committed to doing it for you.

Don’t Know Where to Start? We Can Help.

If you don’t already have a realtor, or if you’re not sure you’re working with the right one, we’ll help connect you with someone who actually puts your needs first.

We’ve worked with hundreds of real estate agents across Texas, Florida, California, and beyond. We know who communicates well, who negotiates smart, and who actually shows up for their clients. We only recommend people we’d trust with our own home purchase.

You can request an intro here: Need an Agent?

It’s free, and there’s no pressure. Just a straightforward way to get in touch with someone who knows the market, respects your goals, and won’t lead you into a deal you’ll regret.

Because in a housing market this competitive, the last thing you need is an agent who looks the part but doesn’t do the job. You need someone who’ll protect you. Someone who knows what’s fair, what’s risky, and what’s just plain wrong.

And we’ll help you find them.