The Controversy of Stigmatized Properties

Sunday Jan 07th, 2018


Stigmatized properties are something buyers should be aware of because they present a challenge in terms of resale. What is a stigmatized property? What do you need to know about them if you’re a homebuyer?


A stigmatized property is a property that a buyer or tenant rejects because it has some sort of stigma which is completely unrelated to its physical condition or structure. Typical stigmatized properties include those in which a suicide took place, a murder occurred, or that were used as a “grow-up” property.

If you choose to buy one of these homes, you’ll have a very challenging time trying to sell it if and when you decide to move. Stigmatized properties typically sit on the market for 45% longer than the average listing and sell for 20% less money. 

According to a recent online survey of homebuyers, 63% said they would not buy a property in which a murder took place. Additionally, according to a recent case study we looked into, a property that should’ve sold at its market value of $750,00 only sold for $600,000 because a murder took place in it.

How would you actually know if a house has a stigma? The seller must disclose that type of thing to their listing agent, and the listing agent must communicate that fact to the prospective buyer and their agent. In the event that the seller doesn’t disclose the stigma, the buyer has the right to sue them for a substantial amount of money if they go ahead with the purchase.

If you have any questions about this topic or are thinking of buying or selling a home in our Toronto market, don’t hesitate to give me a call or shoot me an email. I’d love to help you.

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