Buying a Stigmatized house? You will need an Appraisal
What is a stigmatized house?
Sometimes bad things happen in houses and they make it, well, undesirable to potential buyers. The term ‘bad things’ is really broad because the reality is that a bad thing to one person is not so bad to another person. These ‘bad things’ take the form of murders, airport noise, being haunted and former meth labs. Former crime scenes, and proximity to tectonic faults, and nuclear reactors could also stigmatize a property.
In short a stigmatized house is a property which buyers or tenants may shun for reasons that are unrelated to its physical condition or features.
What is a stigmatized house worth?
Understanding what a stigmatized house is worth is really important for a few reasons. As a buyer realize that the stigma may wear off in time … or it may not. When you go to sell the house in 5, 10 or 20 years it may still be know as ‘the murder house’. Just because it looks like every other house on the block does not always mean that people see it that way.
There are a few professionals that are qualified to appraise stigmatized properties. They can determine the value of the home home for purposes of future resale as well as for a lender.
How will I know if the house I am going to buy has a stigma?
Real estate agents have a certain level of fiduciary responsibility to disclose factual information, not rumors. The National Association of Realtors has some guidelines on disclosure. The reality is that your buyer’s agent may not know about the stigma, so the best way to find out is ask the listing agent. Then ask the neighbors. Once you know all there is to know you can make your own pricing decision in consultation with your agent.
Looking to buy a house that is NOT stigmatized? Call me and lets set up a time to find property. 513.518.1140
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