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
Mortgage that has an interest rate that changes based on some event. For example, the interest rate may vary depending on changes in the prime rate or inflation rate. ...
Also called earnest money. Money deposited with an individual for security for the performance of some contract. This is intended to show his/her willingness to follow through with the ...
The definition of trade-in in real estate refers to a swap of houses. The trade-in program gives a seller of a property the chance to find an ideal replacement home for their family while ...
How much of an investment made in real estate has been recovered expressed in dollars or in percentage terms. ...
A reduction in structural value from all reasons except physical failure. For example, a commercial building having an outdated elevator or electrical wiring system is experiencing ...
A lessening in the inflation rate. This may occur during a recession when insufficient demand prevents sellers from passing on higher prices to prospective buyers of houses. See also ...
The Graduate, REALTOR® Institute is a designation given to real estate agents who have completed the curriculum developed as an educational attainment program by the National ...
Same as term closing: legal process of transferring a piece of real estate to a buyer. Typically it occurs in the office of the lender, attorney, or an escrow company. ...
The term straight note in real estate is also known as a promissory note. A straight note is defined as a loan agreement that generally requires payments of interest only over the term of ...
Have a question or comment?
We're here to help.