Real Estate

Stigmatized properties

Buyers in the market reject stigmatized properties due to phycological or social factors. The rejection has nothing to do with the features of the property itself nor with its condition or location. Properties are usually stigmatized due to emotional reasons. For example, if suicide or a homicide takes place on a property, most people avoid buying the property even if all its features are ideal. Similarly, if the property is rumored to have ghosts or is haunted, people shy away from buying it, and it ends up being stigmatized. Owners of a stigmatized property have difficulty selling the property and finding buyers. According to research conducted by a real estate firm, the value of a stigmatized property dropped, and it is sold for 3% less than the price if everything was normal. The results also stated that it is 45% longer to sell a stigmatized property than average.

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Types of stigmatized homes

A house in which a murder and suicide might have occurred.

This type of stigma comes into existence when a person is murdered, or someone has killed themselves at the property. It is said that this type of stigma is the worst one, and sellers face extreme difficulty in trying to sell such a house. That is because the death of someone on the property leaves behind trauma that has existed for a long time. According to data, it is said that most people say that the ghost or spirit of the dead person still resides at the property, and hence they avoid buying such a property. According to the law, the seller does not have to add this information to the documents; however, the word usually spreads in the market, and most people find out.

A haunted house

Not everyone believes in ghosts or paranormal activity but even then, most people back out from a deal if they find out that the house is haunted. According to a survey conducted by a newspaper, 45% of people would not buy a property that is rumored to be haunted even if the property is available at less than the market rates. Just like murder or suicide, the state does not require you to reveal such information, and the seller can hide it if they want and can do so. However, it is morally wrong to hide such information from the buyer.

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Criminal stigma

Many buyers aren’t just interested in the house’s current condition; they also want to understand about its history. They want to know how the house was used and who resided there. If they find out that the property was used to carry out illegal acts or was the criminal’s home, most people avoid buying such property even if the criminal is dead. Similarly, if the property was used to grow drugs, it gets stigmatized as people fear that they might get into trouble with the cops in the future.

Minimal Stigma

A minimal stigma is not that popular and is only held by a particular portion of the population. Such stigmas only bother a small number of people and hence do not significantly impact the price. An example of a minimal stigma is the debt stigma. Many people consider it bad luck if the previous owner suffered significant financial losses while staying at the property. They believe that the property brings out bad vibes, and they may have to face the same problems.


Stigmatized properties cause distress to the seller but can result in discounts that will benefit the buyers. In most nations, there is no requirement to formally declare any stigma attached to a property. However, all real estate agents and sellers are advised to be honest with the buyers and give them accurate information. Read more about Nova City.

Author Bio

Ramza Zahra is a Karachi-based freelance content writer who uses her life experiences and curious nature to research and pen it down and make a living. Currently, she is working with Sigma Properties as an Snr. Content Writer.

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