W
hen buying a home, real estate agents are required to disclose physical or material defects, but death on the property isn't always considered a defect requiring disclosure. The National Association of Realtors defines "stigmatized properties" as homes impacted by past events with no physical consequences, such as murder, suicide, alleged hauntings, or notorious previous owners.
Stigma can affect people differently, and some may be deterred from buying a stigmatized property while others might seek it out. A Redfin report found that nearly three-quarters of potential homebuyers would buy a haunted house for a lower price. Some buyers don't care about the history if it means getting a discount.
Disclosure laws vary by state, with some requiring listing agents to inform buyers of recent deaths or stigmatizing events. For example, California requires sellers to disclose deaths within three years, while Alaska requires listing agents to communicate known murders or suicides from the past year. In New York, sellers don't need to disclose death or crime but must inform buyers of paranormal activity claims.
Homebuyers often have to ask directly about a property's history, as some states don't require upfront disclosure. Real estate agents have a fiduciary responsibility to sellers and may not be required to provide detailed information unless asked by the buyer.
To research a home's history, experts recommend talking to neighbors and officials or following the paper trail. Neighbors can provide first-hand experience of the area, while county managers or police records may hold information about previous events at the property. Online searches can also reveal newspaper headlines and police reports related to the property.
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