What is a stigmatized property?

Stigmatized properties
Stigmatized properties can provide opportunities for home buyers.

A stigmatized property is real estate that has been impacted by an event that occurred or was suspected to have occurred there. Although these events oftentimes do not impact the physical state of the property, they can impact property values. With this said, these properties may provide an opportunity for buyers to obtain a great deal. We discuss some various types of stigmatized properties below.

Types of property stigmas

  • Death stigma: A death in a home is quite common, particularly when it is an elderly homeowner dying of natural causes. With this said, there are instances when deaths are a result of foul play such as murder or suicide. Real estate agents must adhere to disclosure requirements for their particular states when providing information about a property. For example, in Florida, real estate agents do not have to disclose if there was a murder or suicide at a property. In California, these events that have occurred in the past 3 years must be disclosed.
  • Haunted or paranormal activity stigma: Although reports of haunted houses occur more often than you may think, oftentimes noises heard throughout the night may simply be loose piping in need of repair or even a rodent or other un-welcomed guests. Nonetheless, this stigmas may persist for a home.
  • Criminal activity stigma: Some properties have a reputation for being homes for criminal activities in the past. Although this may cause concern for a home buyer, it is a good idea to further explore the neighborhood and surrounding areas. If the area is known to be dangerous due to criminal activity, they may want to keep looking at other properties.


As with any property that you are considering, it is always important to perform as much due diligence as possible. Whether this is pertaining to the history of the property or the actual property inspection itself, the more information about a property the better. With regard to stigmatized properties, it is also important to differentiate fact from fiction. Oftentimes, community speculation about a property turn into rumors and myths that end up being believed by most. In the end, some of these stigmatized properties can provide great value for buyers.

At Live South Florida Realty, Inc. we have assisted many clients with their real estate needs. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. Live South Florida Realty, Inc., has been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!

By natasha moore

REALTOR® with Live South Florida Realty, Inc.

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