Stigmatized properties have been impacted psychologically by a traumatic event. This could be from crime, suicide, or even alleged paranormal activity. There may not be even anything physically wrong with the property. Depending on the situation, a stigmatized property can be difficult to sell.
But if you have a stigmatized property, are you required to disclose it to a potential buyer? It depends on where you live. Keep in mind, there are buyers who won’t care if the price is right.
What Makes a Property Stigmatized
The National Association of Realtors (NAR) states a stigmatized property is “a property that has been psychologically impacted by an event which occurred, or was suspected to have occurred, on the property, such event being one that has no physical impact of any kind.”
Criminal Activity or a Notorious History
Public perception could be impacted if the house were known for illegal activities like drug dealing or prostitution. Child neglect or abuse on the property could also stigmatize a house.
Anne Johnson
Author
Anne Johnson was a commercial property and casualty insurance agent for nine years. She was also licensed in health and life insurance. She went on to own an advertising agency, where she worked with businesses. She has been writing about personal finance for 10 years.
