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When a real estate agent works with a prospective homebuyer, they’re required to point out physical or material defects in the property.
A death on the property? It depends on the state where the house is located. In most states, death doesn’t count as a material defect requiring disclosure.
Some homes are considered “stigmatized properties,” or dwellings that have been “psychologically impacted by a past or suspected event on the property, but has no physical impact of any kind,” according to the National Association of Realtors.Â
Stigmatizing events include murder, suicide, alleged hauntings or a notorious previous owner, NAR noted.Â
Different people interact with stigmatized properties in different ways.
Harrison Beacher
real estate agent and managing partner at Coalition Properties Group in Washington, D.C.
Which states require disclosure of death
Listing agents will have different requirements state-by-state on what to disclose to a buyer. Most states don’t have any death disclosure requirements.
Among those that do, rules can be straightforward and explicitly require prior death to be disclosed to homebuyers. Even those rules may only apply to recent deaths or more stigmatizing events such as murder.
In California, for example, a seller must disclose if someone died in the house within the last three years.
Meanwhile, in Alaska, the listing agent must communicate if any known murders or suicides happened in the last year. South Dakota requires sellers to disclose deaths within the last 12 months.
Regulations will depend on the stigma in question. In New York, a seller doesn’t need to disclose if the house was the site of death or crime. But if a seller has made claims of paranormal activity in the home, they have to inform the buyer of potential ghosts in the property, experts say.
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Oftentimes, it falls on the homebuyers directly asking the agent about the property’s history. States like Georgia do not require real estate agents or sellers to disclose upfront if the home was the site of a death. But they have to be truthful if a prospective buyer inquires.
Outside of what the disclosure laws are in a specific state, listing agents have a fiduciary responsibility to the sellers, said Harrison Beacher, a real estate agent and managing partner at Coalition Properties Group in Washington, D.C.
“If somebody asks me about it, I can point them towards empirical resources to get answers, but I’m not under any requirements to go into detail,” said Beacher.
Here’s what homebuyers should know about properties that have been stigmatized by murder, suicide, alleged hauntings or notorious prior owners, and how to find more detail about the home’s history.
Who buys stigmatized properties?
Stigmatized homes can be a “turn off” for homebuyers who believe in ghosts or spirits, said Daryl Fairweather, chief economist at Redfin, an online real estate brokerage firm.
“Some people are spooked away,” said Fairweather, while others might “seek out those homes.”
Nearly three-quarters, 72%, of potential homebuyers said they would buy a haunted house for a lower price, according to a new report by Real Estate Witch. The site polled 1,000 U.S. adults in September to discover their views on buying and selling haunted houses.
Some buyers don’t care what happens in a stigmatized property “if it can get them a discount on price,” Beacher said.
About 43% of polled Americans would offer at least $50,000 below market value on a haunted house, Real Estate Witch found in the report.
In 2021, the LaBianca mansion, the home where Leno and Rosemary LaBianca were murdered by Charles Manson’s followers in 1969, sold for $1.875 million. The previous owner, Zak Bagans, a paranormal activity investigator, originally put the house on the market for $2.2 million, but later cut the price to $1.9 million.
“Different people interact with stigmatized properties in different ways,” Beacher said.
In 2023, about 67% of would-be buyers said they would buy a haunted house if it met their wants, like having appealing features, the right location or a more affordable price, according to Zillow.
But buyers should know that “every property has a history,” said Connie Vavra, managing broker of RE/MAX, a real estate brokerage franchise, at Elgin, Illinois.
“We can’t erase the history that’s been done there … That doesn’t mean that you can’t have good energy in there and have [a] good experience living in that home.”
How to find out a home’s history
If you have questions or concerns about a property’s history, the first thing you should do is ask the real estate agent. In some states, real estate agents need to provide truthful information upon a buyer’s request, or at the very least, point you towards the right direction to find out.
Here are two ways to check, experts say:
1. Talk to neighbors and officials
Keep an eye out for the property’s neighbors, experts say. Besides the real estate agent, neighbors can give you first-hand experience of the area, as well as information about the previous homeowners.Â
You can also call the county manager where the property is located, said Theresa Payton, a former White House chief information officer who is now the CEO of cybersecurity firm Fortalice Solution.
You can also ask for someone at the county manager’s office who may know about the property you’re considering and if there are any crime records associated with it, she said.Â
2. Follow the paper trail
“The internet is a dangerous source for information,” Vavra said, as you can find a wealth of details about a property.
If police responded to any activity at the house, the event will likely be reported in the newspaper and it would be public record, Payton said.
You can do an advanced search online through newspaper headlines and police reports, as “all that information is free,” she said.
