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When a real estate agent works with a potential home buyer, they must point out any physical or material defects in the property.
A death on the property? It depends on the state in which the house is located. In most states, death is not considered a reportable material defect.
According to the National Association of Realtors, some homes are considered “stigmatized properties,” or homes that “have been psychologically impacted by a past or suspected event on the property but have no physical impact.”
According to NAR, stigmatizing events include murder, suicide, alleged hauntings or a notorious previous owner.
Different people interact with stigmatized characteristics in different ways.
Harrison Beacher
Real estate agent and managing partner of Coalition Properties Group in Washington, DC
Which States Require Death Disclosure?
Listing agents have different requirements for what they must disclose to a buyer from state to state. Most states do not have a death disclosure requirement.
For those that do, the rules can be straightforward and specifically require that early death be disclosed to homebuyers. Even these rules may only apply to recent deaths or more stigmatizing events such as murder.
For example, in California, a seller must disclose whether anyone has died in the home within the past three years.
In Alaska, however, the listing agent must report whether there have been any known murders or suicides in the last year. South Dakota requires sellers to disclose deaths within the last 12 months.
The regulations depend on the respective stigmatization. In New York, a seller is not required to disclose whether a death or crime has occurred in the home. However, if a seller makes claims about paranormal activity in the home, they must inform the buyer about alleged ghosts in the property, experts say.
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It is often up to home buyers 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 death has occurred in the home. However, you must be truthful when a potential buyer inquires.
Aside from the disclosure laws in a particular state, real estate agents have a fiduciary responsibility to sellers, said Harrison Beacher, 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 to empirical resources to get answers, but I am under no obligation to go into detail,” Beacher said.
Here's what home buyers should know about properties stigmatized by murder, suicide, alleged hauntings or notorious previous owners, and how to learn more details about the home's history.
Who buys stigmatized properties?
Stigmatized homes can be a “deterrent” for homebuyers who believe in ghosts, said Daryl Fairweather, chief economist at Redfin, an online real estate brokerage firm.
“Some people are scared,” Fairweather said, while others “may go to these houses.”
According to a new report from Real Estate Witch, a data site owned by Clever Real Estate, nearly three-quarters, 72%, of potential home buyers said they would purchase a “haunted house” at a cheaper price. The website surveyed 1,000 adults in the U.S. in September to get their opinions on buying and selling supposedly haunted houses.
Some buyers don't care what happens to a stigmatized property “if it means they get a discount,” Beacher said.
According to Real Estate Witch's report, about 43% of Americans surveyed said they would bid at least $50,000 below market value for a haunted house.
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, had originally listed the home for sale for $2.2 million, but later reduced the price to $1.9 million.
“Different people interact with stigmatized real estate in different ways,” Beacher said.
In 2023, according to Zillow, around 67% of prospective buyers said they would buy a supposedly enchanted house if it met their wishes, such as attractive amenities, the right location or a cheaper price.
But buyers should know that “every property has a story,” said Connie Vavra, managing broker of RE/MAX, a real estate brokerage franchise in Elgin, Illinois.
“We can’t erase the history that was made there…That doesn’t mean you can’t and don’t have good energy there.” [a] It was a good experience living in this house.”
This is how you find out the history of a house
If you have any questions or concerns about a property's history, you should first contact the real estate agent. In some states, real estate agents are required to provide truthful information upon a buyer's request, or at least point you in the right direction to find out.
Here are two ways to check this, say experts:
1. Talk to neighbors and officials
Keep an eye out for the property's neighbors, experts say. In addition to the real estate agent, neighbors can also give you first-hand insight into the area and information about the previous homeowners.
You can also call the county manager where the property is located, said Theresa Payton, a former White House chief information officer and now CEO of cybersecurity company Fortalice Solution.
Check with the county clerk's office about the property you're considering and whether there are crimes associated with it, she said.
2. Follow the paper trail
An internet search can reveal details. If police respond to activity at the home, the event will likely be reported in the newspaper and publicly disclosed, Payton said.
You can do advanced searches of newspaper headlines and police reports online because “all of this information is free,” she said.