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  #1  
Old 12-29-2004, 03:49 PM
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Lycabull Lycabull is offline
 
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I am a licensed appraiser born and raised in Wichita, KS. I have lived here (or near here) most of my life. I currently appraise in the greater Wichita area. Some weeks back, a former supervisor of mine posted an interesting question regarding a "stigma." I also saw another thread on the same subject and it got me to thinking about stigmas in general.

Now, for the benefit of those of you who have never heard of the creep I am going to ask about, (no, it's not my former supervisor, he's a good guy, lol) allow me to give you some background so you can help me with my question.

I get into a lot of trouble assuming but I am going to assume many of you have already heard of Wichita's latest claim to fame? We currently have a real live serial killer running amuck. He uses the initials BTK, which stands for "bind, torture and kill." To my knowledge, he began killing people way back in the 1970's. I inadvertently saw some police photos of this killers work. A buddy of mine used to date a girl whose father was in the homocide department back then. One day, they played a very sick joke on me and as I was sitting around, she tossed me an envelope and said, "hey, check these out." Much to my consternation, I soon discovered they were police photos of one of the murders. My point is, having seen what this serial killer can do, I assure you he is about as bad news, as it gets!

A couple months ago, after many years of silence, the btk killer has reared his ugly head again. Recently, he has been sending letters to the press, etc. I can only assume he craves attention? At any rate, as someone who owns a company that has contracted as a locksmith for 25 plus years, I can assure you, once again, the town is living in terror. Deadbolt installations shot up dramatically back when I was doing service in the 70's. My friends in the locksmith business tell me deadbolt sales are way up again due to the recent media coverage.

Now that btk is back in the news, of course the local media outlets are back in full hyperventilation mode. If you live around here, it was hard to miss the news. "America's most wanted would soon be in town to do another show asking for help solving the btk case." Not being much for the sensationalism of network tv, I normally don't watch it but couldn't resist watching the show in question a couple weeks back.

Now, I think my former supervisor helped me learn enough that I wouldn't be afraid to tackle a house with a stigma like that. i.e., a house where a homicide had been committed. While I doubt comps would be plentyful, I am sure other comparables could be found to abstract an adjustment. After all, this guy has already killed several people we know of for sure. I'm thinking some of the other btk houses would provide an indication of the markets reaction to houses where he killed somebody in them.

On America's most wanted, during the show, they actually showed a current view of the inside of one of the houses btk killed someone in, back in the 1970's. I was stunned. I asked myself, "what dullard would let a camera crew inside to show the whole wide world, the inside of their house?" Then it hit me, doh, lol. No doubt good ol Fox probably threw in a financial incentive? That is only speculation on my part but why else would they let a camera crew in?

So now, not only do we have a house that had a homocide committed in it during the 1970's, we now have one that has been linked to having a homocide committed in it, splattered all over the TV, to a national audience!

What effect do you think this would have on the value for the house with the recent publicity, verses one he killed someone in but hadn't been on national tv? Why? And finally, how would you go about supporting your conclusion? The good news is, I don't have this house as an assignment. Only my fertile imagination running wild with scenarios of, what if I DID have that assignment? I just wondered what effect, if any, the rest of you think the recent exposure to a national TV audience would have on a house where a homocide had been committed in it years ago?
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  #2  
Old 12-29-2004, 04:13 PM
Restrain Restrain is offline
 
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The answer is, of course, paired sales. :lol:

Seriously, you find a sale of a home where it was known that such murder occurred and a similar home where it didn't occur and pair them.

There's enough public murders around here that there is data. For example, a home in one community sold for approximately 50% of value because of a publicized murder.
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Old 12-29-2004, 05:02 PM
Randy Beigh Randy Beigh is offline
 
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Mark said something that I think is key to stigmas on criminal related homes. That is the publicity. That same house with no or minimal publicity might not have any stigma, but that publicity can be a killer. Pun intended.

We had a serial rapist in this city in the 1980's named Kevin Coe. After he was caught and sentenced, his mother tried to kill the judge. A book and movie were done. The book mentioned the house Coe grew up. That house was a tourist attraction, if that is right word.

I was asked to do an appraisal of a house in that neighborhood and, unbeknowst to me, the Coe house was one of my sales. The owner told me, he didn't think that I could use that as a good sale. When I asked why, he told me the Coe story. I had several other sales, so just put this sale in the mix, just to see what happened. Sure enough, that house sold for 6% less than the others. Made no sense, since no crimes took place in that home, but that publicity is what did this.
  #4  
Old 12-29-2004, 09:26 PM
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Also consider the time factor. While publicity may be a negative factor on resale. Will the stigma continue forever? Probably not since time does mull the memory. Also keep in mind the type of publicity, local, regional and national attention. While market value right after publicity of a murder or death may have an affect even to the extent that there is no value. As time goes on the stigma may go away. There are instinces of stigma continueing for decades. But how many continue for say 50 years or more.
  #5  
Old 12-29-2004, 10:23 PM
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To further complicate this scenario:
Let's say the stigmatized house should sell for $100,000 without the stigma. For the sake of discussion, we'll use Randy's 6% factor and the house sells for $94,000. However, Fox, ABC, and CBS each pay $2,000 for an interior video shoot, is there a stigma? (94K+6K=100K) What if each network paid $5,000? (94K+15K=109K) What if you charged admission to the "tourist attraction?" Is the negative stigma providing a financial return? At that point is it still a stigma or is it "historical value?"
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Old 12-29-2004, 10:47 PM
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Quote:
My friends in the locksmith business tell me deadbolt sales are way up again due to the recent media coverage.
Leap of illogic, btk is a locksmith! :eyecrazy:
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Old 12-30-2004, 02:35 PM
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Ryan Nyberg Ryan Nyberg is offline
 
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Doug,

Then wouldn't it be instead of a historic house. A income producing property? :lol:
  #8  
Old 12-30-2004, 02:47 PM
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The stigma is wrapped in an enigma which is wrapped in a mystery.

I have an upcoming assignment of a small 2 bedroom, 1 bath home. But it is of such local hisotrical interest that it may have significant value to the local historical society. I need to do some research and homework before taking this one on.
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  #9  
Old 12-30-2004, 02:52 PM
Randy Beigh Randy Beigh is offline
 
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Doug

I thought that your question was thought provoking, but I question if the news services pay for interior inspections? If they do, it's open house at my home.
  #10  
Old 12-30-2004, 03:35 PM
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I thought I would provoke thought once in a while instead only provoking people!
I wouldn't let any news crew film the inside of my home unless I was well compensated.
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