It is natural to focus on the present condition of a home that you want to buy. Still, as you conduct due diligence on the property, you should investigate to see if the home possesses any stigmas. Knowing whether you have a stigmatized residence on your hands may be something you want to consider before purchasing it.
According to Bankrate, a stigmatized property is a location that bears a psychological impact because of an event that has happened on the property. The event has not harmed the present physical state of the residence, but it has given the property a negative reputation.
Examples of property stigmas
Some properties are the location of a serious crime. There may have been a murder, a sex crime, drug dealing or some other criminal offense. In other cases, a homeowner has gotten into serious debt, drawing the attention of debt collectors to the property.
There are also properties reputed for paranormal activity. Some people report odd variances in temperature or claim to observe movement of furniture. You might not find out about such claims until after you buy the home because paranormal activity generally does not appear on real estate disclosure forms.
The pros and cons of a stigmatized property
Buying a stigmatized home may not necessarily be a problem. You might not care about stories about paranormal occurrences or past criminal activities on the property. Some stigmas also fade with time. Additionally, the stigmas attached to the residence might be motivating the seller to offer you a lower sale price for the home.
On the other hand, stigmas may produce ill effects that you will have to deal with. Debt collectors may show up if a previous owner was in serious debt. People looking for illegal drugs might come by if someone had used the home for drug sales. You may also have trouble selling the home because of a stigma. Be as thorough as you can in your research so you know if a property has stigmas that may cause you problems down the road.
