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When a real estate agent works with a potential home buyer, he or she is asked to point out physical or physical defects in the property.
Death on property? It depends on the state in which the house is located. In most states, death is not a physical defect that requires disclosure.
Some homes are considered “stigmatized properties,” or residences that have been “psychologically affected by a prior or suspected event on the property, but have no physical impact of any kind,” according to the National Association of Realtors.
Stigmatized events include murder, suicide, alleged stalking or a notorious former owner, NAR noted.
Different people react to stigmatized property in different ways.
Harrison Beecher
Real estate agent and managing partner at Coalition Properties Group in Washington, DC
What countries require death disclosure?
Listing agents will have different requirements from state to state on what must be disclosed to a buyer. Most states do not have any death disclosure requirements.
Among those that do, the rules can be clear and explicitly require disclosure of the homebuyers' prior death. Even these rules may only apply to recent deaths or more stigmatizing events such as murder.
In California, for example, the seller must disclose whether someone has died in the home within the past three years.
Meanwhile, in Alaska, the listing agent must report if any known murders or suicides occurred in the past year. South Dakota requires sellers to disclose deaths within the past 12 months.
Regulations will depend on the stigma involved. In New York, the seller does not need to disclose whether the home is the site of a death or crime. But if the seller claims paranormal activity in the home, they should inform the buyer that there are supposed ghosts on the property, experts say.
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Often times, it is the responsibility of homebuyers to ask the agent directly about the history of the property. States like Georgia do not require real estate agents or sellers to disclose in advance whether a home is the site of a death. But they have to be honest if a potential buyer inquires.
Outside of a particular state's disclosure laws, listing agents have a fiduciary responsibility to sellers, said Harrison Beecher, a real estate agent and managing partner at Coalition Properties Group in Washington, D.C.
“If someone asks me about this, I can point them toward experimental resources for answers, but I'm not under any requirement to go into detail,” Beecher said.
Here's what homebuyers should know about properties that have been stigmatized by murders, suicides, alleged hauntings, or notorious former owners, and how to find more details about a home's history.
Who buys stigmatized properties?
Darrell Fairweather, chief economist at online real estate brokerage Redfin, said stigmatized homes can be a “turn-off” for homebuyers who believe in ghosts or spirits.
“Some people are freaked out, while others might be looking for those homes,” Fairweather said.
Nearly three-quarters (72%) of potential homebuyers said they would buy a “haunted” home for less, according to a new report from Real Estate Witch, a data site owned by Clever Real Estate. The site surveyed 1,000 American adults in September to find out their views on buying and selling supposedly haunted homes.
Some buyers don't care what happens to a stigmatized property “if they can get a discount on the price,” Beecher said.
About 43% of Americans surveyed said they would offer at least $50,000 less than market value for a haunted home, according to the Real Estate Witch report.
In 2021, the LaBianca Mansion, the home where Leno and Rosemary LaBianca were murdered by followers of Charles Manson in 1969, was sold for $1.875 million. The previous owner, Zak Bagans, a paranormal investigator, originally put the house on the market for $2.2 million, but later lowered the price to $1.9 million.
“Different people react to stigmatized property in different ways,” Beecher said.
In 2023, about 67% of potential buyers said they would buy a supposedly haunted home if it met their needs, such as having attractive features, the right location or a reasonable price, according to Zillow.
But buyers should know that “every property has a history,” says Connie Vavra, brokerage director for RE/MAX, a real estate brokerage, in Elgin, Illinois.
“We can't erase the history that was done there…that doesn't mean you can't have good energy there and have a good experience living in that house.”
How to know the history of a house
If you have questions or concerns about a property's history, the first thing you should do is ask your real estate agent. In some states, real estate agents need to provide honest information at a buyer's request, or at least point you in the right direction to find out.
There are two ways to check, experts say:
1. Talk to neighbors and officials
Experts say: Keep an eye on your property's neighbors. Along with a real estate agent, neighbors can give you first-hand experience of the area, as well as information about previous homeowners.
You can also contact the county manager where the property is located, said Theresa Payton, a former White House chief information officer who is now CEO of cybersecurity company Fortalice Solution.
Ask the county manager's office about the property you're considering and if there are any crime records associated with it, she said.
2. Follow the paper path
An internet search can turn up details. If police responded to any activity at the home, the event would likely be reported in the newspaper and would be public record, Payton said.
She added that you can do advanced research online through newspaper headlines and police reports, as “all this information is free.”
