Urgent Please help! STIGMA?

[Konkie]

Received an REO appraisal request, found out after the inspection that one of the previous owners was murdered in the home; information was obtained from listing agent and local newspaper. How do I properly address this in the report...please help!!!

 

[Tom Barclay]

There have been quite a few of these requests over the years.
Here is one. Try the search fuction.

http://appraisersforum.com/showthread.php?t=129161&highlight=murder

 

[Metamorphic]

I dont know if there's a right way to do it. But if I had to address it I'd call a friend that's on the police force and ask him if he knew of any houses where there had been some murders in the county and then I'd go see if any of them had transfered shortly after the murder, then see if they took a hit relative to a paired sale.

If you dont have a friend with access to police computers, you could just start googling for murders in your area, investigate whether they occurred in the persons home, then figure out what home that was by searching the public record DB by name. If you figure you have the right residence, then you hope it transferred shortly after the murder, then you look for a paired sale.


I dont think anybody is going to criticize you if the death house is out of your neighborhood as long as the paired sale is comparable. Just figure out a percentage and call it "the best you can do".

 

[Liz Mura]

It really depends on the perception of the stigma. If it was a High Profile murder, or one that got a great deal of media attention, the stigma is greater. If it was buried in the back pages or committed some time ago, the sigma might actually be nonexistant. This isn't very scientific, but you might want to poll a few non-real estate people in you area...ask them about the murder. If no one even remembers it or heard of it, you probably don't need to make an adjustment. You will be the best judge of that.

 

[c w d]

Pick up a copy of "appraising the tough ones" I think that is what it is called. Look on the AI website. It's a good book and has a section on stigmatized properties.

 

[RSW]

Ooooo! That's creapy! Did you have to go in and do the inspection by yourself?

 

[Metamorphic]

Ooooo! That's creapy! Did you have to go in and do the inspection by yourself?

Of course not! The ghost will be there.

 

[Thern Newbell]

Have you researched the listing history of the property? If there are prior listings, you could speak to the agents for those listings to guage what kind of resistance there may have been for the property in the market, which you can address in the report. Even if an agent listed the property five years ago, they are bound to remember the house. That is, of course, if the murder occured a few years back as opposed to in the last few months. As far as an adjustment for stigma, it is very difficult to provide guidance without knowing more about the property and the market.

 

[Webbed Feet]

Received an REO appraisal request, found out after the inspection that one of the previous owners was murdered in the home; information was obtained from listing agent and local newspaper. How do I properly address this in the report...please help!!!

Konkie,

The very first thing I would address is asking the my client if they were aware of this. If they said yes, the very next thing I would address with them is why they did not tell me! Then we would discuss a new fee quote. If they said no, I would inform them of it and ask them if they would like that in a letter to them with a new fee quote? If they didn't LIKE the new fee quote, I'd let them know how much they owe me so far if they want to cancel the appraisal request.

Now, in YOUR case not only is there the new fee due to the altered SOW due to the undisclosed stigma causing additional research that has to be done, but you obviously don't know how to do that research and handle the situation. So..........................................................What does USPAP say when an appraiser discovers they are not qualified to proceed with an assignment? .. You go back and do what with your client?

I'd say you have a few things to "properly address" long before you get to addressing anything in a report. If you done them, please post that you have and post what actions you agreed to with your client to "become qualified."

Webbed.

 

[RSW]

We had a home here in our subdivision where the daughter murdered her mother in the house. The house was empty for several years and has not sold twice. I don't know why it sold twice but the first buyer did a lot or updating on the interior and exterior and then put it on the market in less than a year. The first purchase was for $246,000 and the second one was for $276,000. That seems to be pretty similar to other two story homes that have sold in our neighborhood in the last few years. I really don't think there is any stigma to that house.