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When a real estate agent work with a prospect house buyerthey are required to report physical or material defects in the property.
A death on the property? It depends on the condition the house is in. In most states, death does not count as a material defect requiring disclosure.
Some houses are considered “stigmatized properties“, or homes that have been “psychologically impacted by a past or suspected event on the property, but have no physical impact of any kind,” according to the National Association of Realtors.
Stigmatizing events include murder, suicide, allegations hauntings or a known former owner, NAR noted.
Different people interact with stigmatized properties in different ways.
Harrison Beacher
real estate agent and managing partner at Coalition Properties Group in Washington, DC
Which States Require Death Disclosure
Listing agents will have different requirements from state to state as to what they must disclose to a buyer. Most states have no death disclosure requirements.
Among those that do, the rules may be simple and explicitly require that prior death be disclosed to home buyers. Even these rules may only apply to recent deaths or more stigmatizing events such as murder.
In CaliforniaFor example, a seller must disclose if anyone has died in the home within the past three years.
Meanwhile, in Alaskathe listing agent must communicate if any known murders or suicides have occurred in the past year. South Dakota requires sellers to disclose deaths that occurred in the past 12 months.
Regulation will depend on the stigma in question. In New York, a seller does not need to disclose whether the home was the scene of a death or crime. But if a seller has made complaints paranormal activity in the house, they must notify the buyer of supposed ghosts in the property, experts say.
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Often, it is the responsibility of buyers to ask the agent directly about the history of the property. States like Georgia are doing it no need real estate agents or sellers must disclose upfront whether the home was the site of a death. But they must be honest if a potential buyer inquires.
Aside from disclosure laws in a specific state, listing agents have a fiduciary responsibility to sellers, said Harrison Beacher, a real estate agent and managing partner of Coalition Properties Group in Washington, DC.
“If someone asks me about this, I can direct them to empirical resources for answers, but I don’t have to go into detail,” Beacher said.
Here’s what buyers should know about properties that have been stigmatized by murder, suicide, alleged hauntings or notorious previous owners, and how to find more details about the home’s history.
Who buys stigmatized goods?
Stigmatized homes can be a “turn-off” for buyers who believe in ghosts or spirits, said Daryl Fairweather, chief economist at Redfin, an online real estate brokerage.
“Some people are scared,” Fairweather said, while others might be “looking for these houses.”
Nearly three-quarters, or 72 percent, of potential buyers said they would buy a “haunted” house at a lower price, a study found. new report from Real Estate Witch, a data site owned by Clever Real Estate. The site surveyed 1,000 American adults in September to find out their views on buying and selling allegedly haunted houses.
Some buyers don’t care what goes into a stigmatized property “if it can get them a discount on the price,” Beacher said.
About 43 percent of Americans surveyed said they would offer at least $50,000 less than market value for a haunted house, according to the Real Estate Witch report.
In 2021, the LaBianca Mansion, the house where Leno and Rosemary LaBianca were murdered by Charles Manson’s followers in 1969, sold for $1.875 million. The previous owner, Zak Bagans, a paranormal activity investigator, initially put the house on the market for $2.2 million, but later reduced the price to $1.9 million.
“Different people interact with stigmatized properties in different ways,” Beacher said.
In 2023, about 67% of potential buyers said they would buy a so-called haunted house if it met their wishes, such as having attractive features, a good location, or a more affordable price. according to at Zillow.
But buyers should know that “every property has a story,” said Connie Vavra, managing broker at RE/MAX, a real estate brokerage franchise, in Elgin, Illinois.
“We can’t erase the history that was made there…That doesn’t mean you can’t have good energy in there and have (a) good living experience in that house. “
How to know the history of a house
If you have any questions or concerns about the history of a property, the first thing to do is speak to the real estate agent. In some states, real estate agents must provide truthful information when requested by a buyer, or at the very least, point you in the right direction to find out.
Here are two ways to check, experts say:
1. Talk to neighbors and officials
Keep an eye on the property’s neighbors, experts say. Besides the real estate agent, neighbors can give you first-hand experience of the area, as well as information about previous owners.
You can also call the county executive where the property is located, said Theresa Payton, a former White House chief information officer who is now CEO of cybersecurity firm Fortalice Solution.
Ask the county manager’s office about the property you’re considering and whether any criminal records are associated with it, she said.
2. Follow the paper trail
An Internet search may reveal details. If police responded to activity at the house, the event would likely be reported in the newspaper and it would be a public record, Payton said.
You can do an advanced search online of newspaper headlines and police reports, because “all that information is free,” she said.
