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when a real estate agent Cooperate with promising people Homebuyersthey need to point out physical or material defects in the property.
Someone died on the property? It depends on the state where the house is located. In most states, death is not considered a material defect requiring disclosure.
Some houses are considered “stigmatized characteristicsAccording to the National Association of Realtors, these homes are “psychologically affected by past or suspicious events, but without any form of physical impact.”
Stigmatizing incident including murder, suicide, suspected Troubled Or the infamous former owner, NAR noted.
Different people interact with stigmatized properties in different ways.
Harrison Beecher
Real estate broker and managing partner at Coalition Properties Group in Washington, D.C.
Which states require disclosure of death information?
Listing agents in each state have different requirements for what to disclose to buyers. Most states do not have any death disclosure requirements.
Of those that do, the rules can be simple and clear and explicitly require that before death Disclosed to home buyers. Even these rules may only apply to more shameful events such as recent deaths or murders.
exist californiaFor example, the seller must disclose if anyone has died in the home within the past three years.
At the same time, in Alaskathe listing agent must communicate if any known murders or suicides occurred in the past year. south dakota Sellers are required to disclose deaths within the past 12 months.
Regulations will depend on the stigma involved. exist New York, The seller is not required to disclose whether the home was the site of a death or crime. But if the seller files a claim paranormal activity In homes, experts say they must inform buyers that there may be a ghost in the house.
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Typically, home buyers will need to ask the agent directly about the history of the property. Georgia and other states do this unnecessary The real estate agent or seller should disclose in advance whether a home is the site of a death. But if potential buyers ask, they must be honest.
Harrison Beacher, a real estate agent and managing partner at Coalition Properties Group in Washington, D.C., said listing agents have a fiduciary duty to sellers in addition to state-specific disclosure laws.
“If someone asks me this question, I can point them to empirical resources for an answer, but I don’t have any requirements to elaborate,” Beecher said.
Here’s what homebuyers should know about properties that are stigmatized by murder, suicide, alleged hauntings or notorious previous owners – and how to find more details about the home’s history.
Who buys stigmatized properties?
Daryl Fairweather, chief economist at online real estate brokerage Redfin, said stigmatized homes could “put off” homebuyers who believe in ghosts.
“Some people are scared away, and some people may be looking for those houses,” Fairweather said.
Nearly three-quarters (72%) of potential homebuyers said they would buy a “haunted” home at a lower price. new Report from Real Estate Witch, a data website owned by Clever Real Estate. The website surveyed 1,000 U.S. adults in September to get their views on the buying and selling of so-called haunted houses.
Beecher said some buyers don’t care what happens to stigmatized properties “if it gets them a price discount”.
According to the Real Estate Witch report, approximately 43% of Americans surveyed said they would be willing to purchase a haunted house for at least $50,000 below market value.
LaBianca Mansion, 2021, where Leno and Rosemary LaBianca were murdered by followers of Charles Manson in 1969. Sell $1.875 million. The previous owner, Zak Bagans, was a paranormal activity investigator. at first The house was listed for sale at $2.2 million, but the price was later reduced to $1.9 million.
“Different people interact with stigmatized property in different ways,” Beecher said.
By 2023, approximately 67% of potential buyers said they would purchase a haunted house if it met their needs, such as attractive features, the right location, or a more affordable price. according to To Zillo.
But buyers should know that “every property has history,” says Connie Vavra, managing broker at RE/MAX, a real estate brokerage franchise in Elgin, Illinois.
“We can’t erase the history that happened there … that doesn’t mean you can’t have good energy there and have a good living experience in that home.”
How to learn about a home’s history
If you have questions or concerns about a property’s history, the first thing you should do is ask a real estate agent. In some states, real estate agents are required to provide truthful information upon buyer’s request, or at least point you in the right direction.
Experts say there are two ways to check:
1. Talk to neighbors and officials
Keep an eye on the property’s neighbors, experts say. In addition to a real estate agent, neighbors can provide you with first-hand experience of the area and information about previous homeowners.
You can also call the county manager where the property is located, said Theresa Payton, former White House chief information officer and current CEO of cybersecurity company Fortalice Solution.
Ask the county manager’s office about the property you’re considering and whether there are any criminal records related to it, she said.
2. Follow the file trail
A web search can reveal detailed information. If police respond to any activity at the house, the incident may be reported in a newspaper and become a matter of public record, Payton said.
You can do advanced searches online through newspaper headlines and police reports because “all this information is free,” she said.
