While the negative reputation of a property may deter some buyers, there are others who specifically seek out homes with a troubling past, often to take advantage of lower prices. According to the National Association of Realtors (NAR), real estate agents are required to disclose any deficiencies related to the property or materials used, but whether or not a death has occurred in the home often depends on state laws. In most states, a death is not considered a significant defect that must be disclosed.
NAR highlights that certain events, referred to as “stigmatizing events,” can affect the perception of a property. Such events may include murder, suicide, reports of hauntings, or the previous owner’s negative reputation.
Each state has different regulations regarding the disclosure of death-related information. California stands out as the only state that mandates real estate agents to disclose all instances of death in a property. Alaska requires disclosure of murders and suicides that have occurred in the past year, while South Dakota requires information on deaths from the previous 12 months. New York, on the other hand, does not require any death disclosures but does require agents to inform buyers if a property is haunted.
Typically, homebuyers need to proactively inquire about a property’s history. In states like Georgia, agents or sellers are not obligated to disclose whether a death has occurred, but they must provide truthful answers if asked by potential buyers.
Harrison Beacher, managing partner at Coalition Properties Group in Washington, notes that beyond specific state regulations, agents have a fiduciary responsibility to sellers. “If someone were to ask me this question, I would direct them to resources where they can find answers, but I’m not obligated to elaborate further,” he explains.
Experts suggest two initial steps for potential homebuyers to gather detailed historical information about a property:
1. **Talk to Neighbors and Officials:** Neighbors can provide firsthand experience about the area and insight into past homeowners. Additionally, contacting the county manager where the property is located can help ascertain any criminal records related to the home.
2. **Research Relevant Documents:** Online searches can yield a wealth of information. Any police reports related to the property are public records and may have been covered in local news articles, with all information typically available for free.
Daryl Fairweather, chief economist at the online real estate brokerage Redfin, points out that while some buyers may shy away from properties with a poor reputation, many others are drawn to these homes for the discount they offer. Data indicates that 72% of potential homebuyers would be willing to purchase a “haunted house” at a lower price.
