Understanding property stigma

Property stigma is a challenging factor to account for when selling or buying a home. Here’s some information to help you understand it better.

What is property stigma?
Any feature of a home that makes it less attractive but is unrelated to its physical or functional properties is usually considered a type of property stigma. Common examples include:

• A suicide or death occurred

• A major crime took place

• A grow-op or meth lab was removed

• There are reports of unexplained phenomena

Whether or not a property is stigmatized is entirely subjective. What one person finds acceptable may be a deal-breaker for another.

What does it mean for buyers?
In most cases, sellers aren’t required to disclose property stigmas. The best thing to do is tell your real estate agent what you want to avoid, and they can ask the seller or their agent. If they refuse to answer, you can either conduct your own research or find another property. Your realtor will be able to assist you in making a decision.

What does it mean for sellers?
In most cases, you’re not legally required to disclose property stigmas. If something about the property could be considered one and you’re asked about it directly, you can either answer the question, answer with a qualification that the buyer does their own research or refuse to answer at all. If you choose to answer, you have to be honest.

Keep in mind that, in the end, whether or not a property is stigmatized is entirely subjective.