As a home buyer that is purchasing a home that had a death on the property, you may be wondering how this will affect the home’s value in the future. Investing in a property takes a lot of time and money, so, it is important to understand if the market value of your home will be negatively affected in the future. Home buyers need to be able to make smart decisions when purchasing a home since it can have a negative effect on their finances in the future.
Usually, if a traumatic event happened on the grounds of a home, the sellers are required to disclose exactly what happened. This is because anything that occurs on a home’s property can have an effect on the current and future owners. For instance, if a damaging flood occurred on the grounds of a home, the homeowners would then be required to disclose this information to any potential buyers of the home. This is done because any damage that happened to the home can cause a problem for future owners who may need to repair damage. However, required disclosures vary from state to state. But, just like with any other major event that occurs on a property, property owners are typically required to disclose a death on the property. This is especially true in the case of a violent crime that resulted in a death on the property.
Disclosing a death on the property of a home doesn’t necessarily mean that the home value will decrease. In actuality, there is no way to know what happened on the grounds of many older homes that are decades old. So, in reality, there are many homes and properties where someone has passed away on the grounds unbeknownst to the current owners. Sometimes if the death occurred decades ago, this information may not have been expressed.
The only issue with a death on the property is that some buyers may not want to live in that home because of the taboo of a death on a property. Sometimes this can cause a home to become a stigmatized property by home buyers because of their knowledge that there was a death on the property. To combat this, some owners decide to sell their home at a certain percentage below market value before buyers even look at the home. However, home sellers should gauge their interested buyers before deciding if a price drop is absolutely necessary.
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