30 Jul
2010

Stigmatized homes are any homes that have public perception. They may be homes which were once affected by criminal activity, a suicide, a murder, an oil spill, or any other activity that is considered unfavorable. Long after the clean up of the home is complete, however, the stigma linked to a home lingers.

Some buyers consider stigmatized homes a bargain. They may not care what previous owners did in a home and since stigmatized homes often sell for below market value, savvy buyers sometimes want to buy. In many cases, it is much easier to get a mortgage on a home that is selling below market value. It is easier to enjoy instant equity in a home selling below market value. And, of course, many buyers are not superstitious and do not care that a home has a “history.”

On the other hand, if a buyer becomes a seller, stigmatized homes can be harder to sell –  even years after an event has taken place. Such homes usually take longer to sell and sell for a lower price. Some sellers with stigmatized homes even find themselves facing after-the-fact lawsuits if they failed to disclose some of the flaws of a home – and this can include disclosing a home’s history.