Murder Suicide, Need Advise Pronto!

[Deleted member 130081]

Appraise it with an EA?

American Horror Story season 1 - Awesome!

 

[glenn walker]

Buyers action indicated a $39,000 reduction and that makes it a lot easier because this situation is very hard when you have NO buyers or your doing the assignment for an-estate or court case. Each one is different but since you know for a fact there is a purchase contract for $39K less than market I would consider that as the discount for being ( stigmatized ). As far as paired sales it's not going to happen because each death is different and Socio-Economic issues come into play.

I took a course on case studies of stigmatized houses years ago by a highly-touted expert witness appraiser but frankly I came away thinking it was mostly a lot of hype and he had no better idea than any body else what or how much effect the stigmatization had on the values but he did have some nice charts -graphs and photos.

Example :
** Jimmy-Bob local neighborhood loser kills himself or is murdered- Discount could be very minimal 5%-10%
** Linda-Love Hollywood Celebrity- Beverly Hills Mansion- Shot and Stabbed- Discount could be 50% or more
** Multiple murders on celebrity property by guys with three foot machetes -50% to Tear Down .

 

[hastalavista]

Except in high profile/notorious scenarios, my experience is that the price-impact is more dependent on the general market conditions than anything else.

Valued a property for an estate in San Francisco; retrospective and I had the benefit of knowing what it sold for after the effective date (guess what??? No interior inspection possible for that one!).
There was condition differences in my value date vs. the later date of sale, but my value was lower than the latter list price which was $200k (10%) less than the sale price; this property became the high-sale in this local market.
MLS describe that a violent crime had occurred on-site that resulted in the victim dying sometime later.
No impact on value; the tight market didn't care about the event.

 

[jay trotta]

Buyers action indicated a $39,000 reduction and that makes it a lot easier because this situation is very hard when you have NO buyers or your doing the assignment for an-estate or court case. Each one is different but since you know for a fact there is a purchase contract for $39K less than market I would consider that as the discount for being ( stigmatized ). As far as paired sales it's not going to happen because each death is different and Socio-Economic issues come into play.

I took a course on case studies of stigmatized houses years ago by a highly-touted expert witness appraiser but frankly I came away thinking it was mostly a lot of hype and he had no better idea than any body else what or how much effect the stigmatization had on the values but he did have some nice charts -graphs and photos.

Example :
** Jimmy-Bob local neighborhood loser kills himself or is murdered- Discount could be very minimal 5%-10%
** Linda-Love Hollywood Celebrity- Beverly Hills Mansion- Shot and Stabbed- Discount could be 50% or more
** Multiple murders on celebrity property by guys with three foot machetes -50% to Tear Down .

Gotta love the Graphs & Photo thang.......it'll do it every time

 

[timd354]

I just got back from an inspection (vacant house) and I realized why the contract price was 37k under list price. Found the sellers disclosure and it was checked that other than death by natural causes, suicide,... occurred on the property. I Googled the property and sure enough there was a murder suicide which occurred on the property. I have called the listing agent to confirm, but have not heard back in a day. Still waiting.

My question is how does one account for the "stigma" or external obsolescence which occurred on the property. Paired sale analysis?? I can't find another similar "stigmatized property" Also is there a canned statement which I can include to "cover me"

Do I ask for an additional fee?

Thanks for any help on this one.

The perceived stigma may or may not affect value and marketability depending on the market. In the past 2 years we have had 2 properties that we foreclosed in which the borrower was murdered i n the property (including a murder-suicide). We had no problem selling the properties for full market value - likely because both properties were both in very hot "sub belt" markets. In other markets, the stigma may well have affected value/marketability

 

[Valueseeker]

Im glad this thread is open still. Although my subject isnt stigmatized, the property across the street (same build, same everything) had a murder suicide in it. Im trying to explain the reason for using other sales on the street. I was looking for advice as to whether just say "a murder / suicide occured..." or if you esteemed veterans have a good euphemism for this sort of thing?

I dont honestly know if there is a way to vaguely beat around the bush but Im reaching here. For some reason I feel like stating the obvious is harsh. Hah! We live in a world with safe spaces. Im looking to keep everyone from getting potentially triggered reading the report. (bad joke).

 

[Meandering]

The sale across the street was not used, as it was opined to be stigmatized by the unnatural, untimely demise of the previous occupants.

.

 

[Deleted member 134708]

I'd use market participants reaction and judgment of the event.

They judged to be ~$40k.

"The appraiser is reporting the judgment of market participants. The appraiser is not using their judgment."

 

[Meandering]

I'd use market participants reaction and judgment of the event.

They judged to be ~$40k.

"The appraiser is reporting the judgment of market participants. The appraiser is not using their judgment."

Oh come on,
That's your "market" support. You need to use it.

.

 

[Deleted member 134708]

Oh come on,
That's your "market" support. You need to use it.

.

Maybe that came off wrong.

"The appraiser is not using the appraisers judgement. The appraiser is using market participants judgment."

I'd word in better English but for website...