Stigmatized Property
Definition of "Stigmatized Property"
Stigmatized property is a property that home buyers might back off on closing a deal due to factors that are not related to the property’s price, structural/aesthetic conditions and overall features.
The stigmas of a stigmatized property can include:
Criminal – a stigmatized property by a criminal activity. Say a house used to be a brothel or a drug den; it’s likely that a lot of home buyers will shy away from closing the deal worrying their doors will be knocked on a lot by former customers.
Debt – if the former owner of the property held a lot of debt, home buyers might look at the house as a stigmatized property fearing a lot of collectors unbeknownst to the change of ownership will come and annoy them.
Death – if there was a homicide or a suicide inside the house, home buyers might feel a bit weird living there. Some states and cities even demand the home seller disclose that information in their full disclosure. In California, for instance, it’s required that this information is made available to the home buyer if the death occurred less than 3 years ago.
Phenomena – Would you live in a haunted house if the price was right? Well, many consider a haunted house a stigmatized property, and some places do obligate the home seller to disclose that information.
Minimal – those are properties that are only stigmatized by a small group of people. Example: a person from one certain religion might see a property that used to be a temple for a “competing” religion, as a stigmatized property but people from the same religion as the temple will not care.
Public – it’s the opposite of the minimal; it’s that stigmatized property that everyone knows about its stigmatized history. A home where a slaughter of national dimensions occurred will fall into this stigmatized property category.
Real Estate Tip:
Need to know if a property is stigmatized – and how to deal with one that is? Get a real estate agent and let him (her) show you how!
Popular Real Estate Terms
Principal highway designed to divert traffic around a major urban area in order to limit congestion and expedite traffic flow. A belt highway is connected to the urban area by main highways ...
The appellant definition references a concept related to legal proceedings. The appellant is the individual who is dissatisfied with the judgment in a lawsuit and asks for a superior court ...
Relationship between individuals or entities out of which exists a mutual interest. An example is a privity of contract among the contracting parties concerning the actions each are to take. ...
An increase in the income tax basis of a property that is a result of a tax-free exchange. As a result of an inheritance, for example, the basis of the inherited property was stepped up to ...
Last installment payment, substantially greater than the previous installment payments. The unpaid balance of a long-term loan is paid off in a lump sum at the end of the loan term. ...
Construction materials from stone, brick, and concrete block. Masonry materials play an important role in providing structural support as well as being used as decorative finish surfaces. ...
Tax-free exchange that allows a seller two years after escrow closes on his former principal personal residence to buy like-kind property and defer taxes. Profits from the sale of a ...
Also known as “cap rate” or “income yield”, Capitalization Rate is a useful way to compute the rate of return on a real estate investment. It is commonly used in the ...
Loan guaranty program included in the Servicemen's Readjustment Act of 1944. Its provisions cover the compensation to lenders for losses they might sustain in providing financing to ...
Have a question or comment?
We're here to help.