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
The return by owners of a property investment usually through a depreciation allowance. a clause in a contract permitting the prior owner of real estate to recover under certain ...
Agreement between a lending institution and borrower where the borrower agrees to extend or spread the collateral of a loan to additional properties beyond the original mortgaged property. ...
Material used for covering the surfaces of walls or ceilings. Plaster used to be made from plaster of paris, but is now primarily made from cement mixed with sand and water. After plaster ...
(1) Judgment against a defendant who does not respond to the plaintiffs lawsuit or fails to appear in court at the hearing or trial date. (2) Judgment issued by the court against the ...
Provision in a lease agreement in which the lessee is given the right to buy the property at the end of lease term. In many cases, the option price is attractive to encourage acquisition. ...
A public foreclosure sale where public notice is given anyone is allowed to participate. Normally, a public sale occurs because of the property owner's failure to pay taxes. ...
Uncertainties associated with real property including lack of insurance coverage in the event of fire or injury, high crime area, and environmental problems. This risk may be reduced ...
Appraisal by summation is an Alias for Replacement Cost A.K.A. Cost Approach, which is one of the approaches an Appraiser can go through in order to assign a Market Value to a ...
Money payments to be delayed for a future date or extended over a period of time. ...
Have a question or comment?
We're here to help.