It’s just a guess, but I suspect that it will be terribly difficult to serve a subpoena….

I know of no similar case in the U.S., but before we laugh at folks overseas it might be good to consider that we DO recognize that ghosts, goblins, genies and whatever impact real estate values. If you have a haunted house — what we call stigmatized property — you must tell any would-be home buyers in some states. And while some potential purchasers may find the possible presence of a ghost attractive, others may not.

With a stigmatized property there may be no worries about the physical condition of the house, instead the concern is with psychologically impacted homes. Some states have regulations which say what must be said or not said when homes are stigmatized.

The concept of stigmatized property is defined differently depending on the jurisdiction where the property is located and can include a requirement to inform buyers if the property has been the scene of a murder, a suicide or maybe it has been haunted. There may be a time limit — say no requirement to tell about a suicide from three years ago. If you have a property where such events have occurred you need to speak with a knowledgeable real estate broker or attorney to find out what must be disclosed and what can be kept quiet.

While some buyers may shy away from such properties, a good ghost story might well be an attractive selling point for more-adventuresome purchasers.

Saudi Family Takes Genie To Court is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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It’s easy to understand that the value of a home will be reduced if the roof leaks or the basement floods, but matters become more complex when the issue is psychological rather than physical.

Suppose a home is in flawless physical condition, but suppose as well that it’s also been the site of a murder or a suicide. Everything works, nothing leaks or floods, but is the home as valuable as a similar property where such events have not occurred?

Some prospective buyers would plainly be discomforted by such news with the result that either they would not bid on the property or they would reduce their offers.

While the feelings of many buyers are entirely understandable, it’s also easy to see that sellers may be unfairly hurt in this process.

Suppose a home is the site of a suicide or murder. If the individual who died was a friend or relative of the owners, they no doubt feel enormous loss and perhaps wish to move. But under some state rules, when they offer their home for sale the owners must tell buyers of recent events at the home, thereby lowering its value.

The catch is that a number of states have so-called “stigmatized housing” rules which say that owners and their brokers need not disclose the events at the home related to suicides, accidental deaths, natural deaths, ghosts, or felonies. These rules are inconsistent, however, so that the disclosure requirements in one state may be vastly different than another. And many states have no rules dealing with stigmatized homes, a legal gap which offers no guidance to buyers, sellers, or brokers.

The result is that what must be said depends on where you live. A murder, for example, may have to be disclosed in one state, not disclosed in another, or disclosed today but not after several years.

Moreover, HUD has taken the position that owners and their brokers can say nothing if an owner has AIDS or has died from AIDS. The logic is that those with AIDS have a disability and are therefore a protected class under federal anti-discrimination rules.

In looking at the various guidelines which impact stigmatized homes, it’s little wonder that state rules are often divided on this issue. Stigmas relate to personal values, preferences, and perceptions, matters difficult to legislate.

If you own a property which is or may be sitgmatized, or if you are considering the purchase of such a property, be certain to first speak with knowledgeable brokers and attorneys in your state to see what disclosures, if any, are required.

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Published originally by Realty Times on May 25th 1999 and posted with permission.

Stigmatized Housing — Will Ghosts Get Your Equity? is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

Technorati Tags: crime, ghost, home, murder, sale, stigmatized, suicide

The subject of stigmatized houses is complex. While some people may want a house with a ghost, others do not. The subject gets tangled even further when one is asked whether murders and suicides at a property must be disclosed.

The rules on this matter vary by state — some say a given condition must be disclosed, others say “no,” some say disclosure is not necessary after so many years, and some states say nothing one way or the other. For specifics, please speak with a broker or real estate attorney in your community.

What’s “Stigmatized” Real Estate? is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

Technorati Tags: ghosts, murder, property, real estate, stimatized, suicide