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murder/suicide

Discussion in 'Urgent - Help Needed' started by John Lakeman, Mar 15, 2006.

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  1. John Lakeman

    John Lakeman New Member

    0
    Mar 14, 2006
    I am appraising a property in Central Wisconsin that is the site of a murder suicide. Obviously there is a certain amount of stigma attached to it by the locals since it is not a secret. How much obsolescence should be assigned as a result? I have to come up with a value relatively soon. What is the solution if any?
     
  2. KYLECODY

    KYLECODY Senior Member

    2
    Apr 26, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Arizona
    tough one....what does the market say?? Are there any similar situations you or local realtors can recall??? Go back as far in time as possible that you have good data on. Even if something occured 5 years ago you could extract a % hit from that if there is one. I have seen this in a city before, 10 doors down from me in Denver, and the home sold for full market value and normal marketing time....I would think something like that would affect marketing time more than sold price, people have real short memories...if its a real small town probably a different story. Good luck.
     
  3. Terrel L. Shields

    Terrel L. Shields Elite Member
    Gold Supporting Member

    973
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    stigma is time dependent. check out Bell's book on Detrimental influences
     
  4. Mark K

    Mark K Senior Member

    67
    Jan 27, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    Indiana
    I appraised one nearby that was the site of a particularly nasty murder, grandkids (teenagers) killed grandma with a claw hammer, stole a few hundred bucks, and left the state. Kids were caught (driving Grandma's car, real rocket scientist material there), confessed.

    House sat empty for a while, 6 mo. or so, and then was listed and sold at the low end of the adjusted range, about 30 DOM. Buyers knew house history, didn't care, liked the basement. Town of about 15K people. House price range was near the median for the area. That was about 5 years ago. House has since resold at market price.

    I think what you'll have is a reduction in the pool of buyers. Some wouldn't even look at it, others said it didn't bother them.
     
  5. Denis DeSaix

    Denis DeSaix Elite Member

    535
    May 16, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    I agree with Terrel; I've heard Bell speak (he's excellent and has great stories!) and purchased the book. It was of great help for a litigation appraisal I did.

    If you don't want to purchase the book and are a member of the Appraisal Institute, Bell has an article that is available on the AI Lum Library site that summarizes the book. It would be of help.

    I would spend the $60 in buying the book; this assignment will pay for the book, and you can be the local expert the next time somethinig like this comes along!

    Good luck.
     
  6. Walter Kirk

    Walter Kirk Senior Member

    21
    Jun 24, 2003
    Professional Status:
    Licensed Appraiser
    State:
    New Jersey
    I know of one case where a well known local politician was murdered in his house. The property was purchased by the victim's son, the man's blood was still staining the walls when the appraisal was done. One man's stigma is another man's bargain.
     
  7. Kevin Mc

    Kevin Mc Elite Member

    0
    Jun 7, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    I can help.....

    I had the same scenario twice in 1985 and 1990. Site of a domestic fight gone bad. Boyfriend beat his girlfriend to death. Other one was a home robbery.At the time there was an article published in one of the trade journals that addressed the issue in detail. It broke down to a 25% negative adjustment. I attached the article with the appraisals but being as it was so long ago, I no longer have those reports. In a paired sales analysis it broke down almost exactly at that percentage so it was pretty reliable. Of course this was in NYC where stigmas are often overseen for the right price, not sure of the market you are dealing withurban,suburban or rural. Good Luck
     
    Last edited: Mar 15, 2006
  8. Hal Mann

    Hal Mann Senior Member

    0
    Jan 19, 2005
    Professional Status:
    Certified General Appraiser
    State:
    New York
    The quarterly stigma thread?

    I have not seen any market data on the impact of murder/suicide stigmas, but I have to believe it isn't so much a value issue as it might be a marketing issue. Of course, marketing issues can indeed impact value. Some folks wouldn't care at all and others wouldn't take the property at any price.
     
  9. Ray Miller

    Ray Miller Elite Member

    0
    Feb 20, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Wisconsin
    Has the property sold in the past? If so was it below the market at the time of each sale? How far in the past did this happen?

    =========================

    You will also need to take the ghost factor in to accout. All so the number of ghost and type of ghost.

    HBU might be as an attraction instead of a single family home.
     
  10. Kevin Mc

    Kevin Mc Elite Member

    0
    Jun 7, 2004
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    Amityville Horror House.....

    still sells significantly below market. Has transacted several times over the years and I believe it sold somewhere around 2002-2003 for $535K when comparable waterfront properties were selling in the $650-$700 range.
     
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