The Pros (and Cons) of Buying a Home With a Dark Past
Imagine: you are in the process of finding a new home to buy, but anything that matches even some of your criteria is worth much more on the list than your budget allows. Then one day you notice this: a house in your price range that ticks all (or at least some) of your boxes. Of course, it looks a little rough around the edges – as if no one has lived there for a long time – but nothing that can be slightly greased with elbows can fix it.
Just before making an appointment with a realtor to inspect the property, you quickly search for an address on the Internet and immediately find out why it is so cheap: something bad happened there. Be that as it may, from this people do not want to live there.
In an article for Hunker, Mariette Williams reveals both the pros and cons of buying a home with a dark past. Here’s what you need to know.
What is stigmatized property?
For your information, there is an official term for homes with a checkered past. They are called “stigmatized real estate” and the National Association of Realtors defines them as “property that has been psychologically affected by an event that has occurred or is believed to have occurred on that property, and such an event does not have any physical impact.”
So what exactly is the event? According to the NAR, property can be stigmatized for a number of reasons, including its location, the fact that someone has been killed or died by suicide in the home, alleged ghosts, and / or an infamous previous owner.
Benefits of Buying Stigmatized Real Estate
According to Chris Lippi , certified real estate broker and owner of the real estate website ISoldMyHouse, the biggest benefit of buying stigmatized real estate is the low price that can pay off in both the short and long term . com . She explained why this is so in a recent interview with Hanker :
“If you can live in the property long enough before you need to sell it, then you can sell it at a higher price than what you bought it for. By then, the stigma may simply be forgotten, or people may no longer worry about stigma because time is ticking. “
Disadvantages of buying stigmatized real estate
Even if you live in a haunted place or the former crime scene does not bother you, in many cases, a disruption in occupancy can lead to the fact that the house will need some improvements, if not a complete renovation.
Moreover, as recently reported Hunker evaluator from New York Julia Kusaeva , stigmatized property owners may be faced with unwanted visitors – and no, she is not talking about ghosts. If the house is known for being the site of criminal and / or supernatural activity, it is possible that it will become a destination for true aficionados of crime or paranormal researchers.