Dear TZ,
We love the house you showed us yesterday, but Sarah thought it was a little creepy. How can we find out if someone died there?
~Spooky Sam and Scared Sarah
Dear Sam and Sarah,
Homes where famous murders or deaths occurred often result in the loss of property value – homes like that of Nicole Simpson (OJ Simpson’s wife), Michael Jackson’s house, the Amityville Horror house, and the location of the Heaven’s Gate mass suicide. The term “psychological defects” applies to homes whose value has dropped not because of a material defect like a leaky roof or faulty plumbing but because of the home’s history.
The disclosure laws vary from State to State. New Jersey is one of only a few states where complete disclosure is required, of material defects and psychological defects, within the past year and prior to that, whether a buyer specifically asks or not. According to New Jersey law, statute 11:5-6.4 "... the term "Psychological impairments" includes but is not limited to, a murder or suicide which occurred on the property or a property purportedly being haunted."
So, to answer your question, since you’re buying a home in Union County, NJ, not only would we have to disclose this information to you, but the seller would be legally obliged to reveal this information to us.
On the other hand, what if the home is haunted? Some buyers consider stigmatized properties great investments. They know they can buy the property at a deep discount – 20-50% less than had the property not been stigmatized – and, if they can ride out the stigma, they’ll be able to make a great profit. Other buyers deliberately seek out stigmatized properties and then market them as such. “Haunted” bed and breakfasts are popular for certain niche clients. It’s even possible to sell the soil from a particularly grisly murder scene on websites such as Serial Killer Ink.
The National Association of Realtors has a Field Guide to Dealing With Stigmatized Properties, which will let you know what an agent may or may not reveal in your state.
So what do you think? Still want to buy the house?
~ Team Zuhl
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