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Urgent Please help! STIGMA?

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Hi Konkie --

Welcome to the forum!

Are you appraising this REO property for the bank, or for a buyer? If it's for a buyer, are they aware of the stigma? If it's for the bank, are they aware?

I have no direct experience with this kind of stigma, but I recall reading that a murder or suicide in a property can have a significant negative impact on the market's response to the property, up to (and beyond) 20% of the value.

On the other hand, it might not have significantly more stigma than a typical REO in fair to poor condition. It only takes one buyer to sell a house, and the repairs needed to upgrade a trashed out REO are already factored into the selling price.

If it's a nice house in otherwise good repair, the question will be how much of a discount is required to overcome the stigma and make it look like a good deal compared with the competing properties.

Good Luck!
 
I had a friend in the rental business ask me last week to do an Appraisal and a Home Inspection on a house that the tenant had just killed himself in, as soon as he could get the pieces of brain out of the popcorn ceiling texture. He says he is getting out of the rental business (I guess it wasn't as glamorous as the tapes made it sound). He hasn't called yet, I guess he's still cleaning bits off the ceiling.
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Mr Rex said:
I had a friend in the rental business ask me last week to do an Appraisal and a Home Inspection on a house that the tenant had just killed himself in, as soon as he could get the pieces of brain out of the popcorn ceiling texture. He says he is getting out of the rental business (I guess it wasn't as glamorous as the tapes made it sound). He hasn't called yet, I guess he's still cleaning bits off the ceiling.
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Rex, You are really one sick puppy!

I was thinking about occupancy of the house. Would it be owner occupied since the ghost is still there or tenant occupied? :icon_question:
 
I did an REO with bullet holes still in the walls and blood spatter everywhere.Also a large piece of the rug has been removed where the Mr Stressd borrower blew his brains out after popping the Mrs.Tried to get them to Cleon up the mess but they sold , as is where is.I mentioned it In the report and was unable to determine market impact.It sold in 30 days..
 
As asked and answered many time before, I have done at least one a year since I started in 2002 except for this year.
I even posted pictures until I was properly awakened.
I have yet to find one that suffered any stigma or prolonged marketing times. In fact the one high profile case I worked, the marketing time was extremely short. There are some really weird people out here!
 
Could be an asset.................
 
Murder/Suicide

Had an inspection once and noticed across the street, the home was "yellow taped" off from the police. The owner of the home I was appraising mentioned about there being a murder/suicide there the other day, and I recalled actually reading about it in the paper.

Here's the weird part: about 10 months later, I got the order to appraise this murder/suicide home for a sale! No mention of any stigma by the Realtor, and the place had been renovated by a flipper since the deaths. I refrained from asking the Realtor about the "incident," just hoping that he'd mention it himself. He didn't, and booked out of there once the front door was locked (ghosts?). As I'm walking down the driveway, the neighbor comes out and says, "It's about time someone else is going to move in there. It's been almost a year since the murders!" I couldn't believe it!

Long story short, we informed the lender about the situation and how we'd have to find some market reaction toward it. They understood completely, and took it upon themselves to let the buyer know of what happened in the home. Great! Full disclosure I guess. The buyer wanted out of the sale, claiming that the Realtor had full knowledge of the situation and failed to inform her. The Realtor said there was no law stating he had to inform ANYONE of what he knew about the home.

This lender is still my biggest client....and....
.....I still got paid.....:clapping:
 
Sometimes they go for more $$

The Bundy condo where OJ killed Nicole Brown Simpson and Ron Goldman went for a $50,000 premium.

A few weeks after the murders, I was in West LA doing an appraisal, so I took photos of both the Condo and OJ's house.

Rockingham was torn down a few years ago.
 
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