AS PUBLISHED IN AUSTRALIAN PROPERTY INVESTOR MAGAZINE (CLICK HERE)
The Stigma of a Murder Scene House: Would You Consider Buying One?
In considering if a buyer would consider buying a house where someone was murdered, I encountered some confusion and uncertainty. Maybe it would be discounted, but there is a high stigma attached. So what is that worth?
When I arrived at the house I was inspecting for a client, a lovely four-bedroom, recently renovated family home adjoining parkland in a premium inner-city location, I was confronted with the information that the agent was obliged to disclose. He simply stated, “I need to make you aware that there was a significant incident that occurred in this property in 2015. This is a house where someone was murdered, a little girl was murdered by her father inside.”
How Does a Tragic History Affect Buyers Emotionally?
Now, this definitely caused me to pause before entering the property. I felt I needed to draw in a few deep breaths. Normally I do not have an emotional response when inspecting or buying property. Perhaps it was the mother in me. After all, when looking at a property for others as a Brisbane buyers agent, I have learned how to keep my emotions out of it. But really, a house where someone was murdered.
I had already reviewed the property from my desktop. It ticked many boxes for my client. But with this new information, I had to reconsider if this property would suit my buyer. Despite my immediate reservations, I entered the home and continued with the inspection, taking photos and video footage as I normally would.
But something “felt” terribly uncomfortable at that moment. As I walked through the home, thoughts flooded through my head. I was asking myself so many questions … what would living in a house where someone was murdered be like …
The Real Impact of a Stigmatized Property
Who would want to live here, potentially raise a family here knowing such a horrible crime took place within the home?
Who would want to rent this property, when there are so many other properties a family could rent that don’t share this terrible history?
Who would actually want to buy this property – a house where someone was murdered?
Logically, the property’s history does not increase anyone else’s chance of being harmed inside. Unlike other issues that can impact a property, like flood or bushfire risk, just because a terrible event occurred before does not mean it will ever happen again.
The crime has resulted in the property being categorized as a stigmatized property, a term used to describe homes with an unfortunate history that can affect market value. Death by murder or suicide tends to make people uncomfortable. Buyers or renters do not like to feel uncomfortable and are often scared away by the stigma associated with such a property.
Evidence shows that stigmatized properties nearly always sell for less than they would have without the stigma. This lower value is what can attract some buyers who are willing to accept the psychological risk.
Can a Tragedy Create a Buying Opportunity?
This was a question I had to consider: “At what discounted price would it be acceptable to buy the property, understanding that someone, a little girl, had been murdered in this home?”
I thought there might be value in the land itself and explored the opportunity to demolish the property and rebuild something new. But I soon found that the home was protected from demolition, like many character homes built prior to the Second World War in Brisbane. That was simply not an option.
For my client, it was a definite no. The risk that rental return would be compromised was too high. The crime was too recent, and Google still tells the story when searching the address.
However, for another buyer, the lower potential resale value may present an investment opportunity. The existing owner, who was an investor at the time of the incident, could experience a reduction in asking price due to the stigma. While uncomfortable, some buyers might see this as a chance to purchase at a discount without affecting future living conditions.
Conclusion: Would You Buy a House Where Someone Was Murdered?
Buying a stigmatized property is a deeply personal decision influenced by emotional response, market impact, and potential investment considerations. While some buyers may see an opportunity in the discounted price, many are deterred by the psychological and social effects of the property’s history.
How Streamline Property Buyers Help You Make Informed Decisions on Unique Properties
At Streamline Property Buyers, our experienced and award-winning buyers agents guide clients through challenging property decisions, including properties with unique histories or stigmas. We help you evaluate risks, market fundamentals, and potential long-term value so you can make informed, strategic investment choices.
If understanding the implications of unique or stigmatized properties and making well-informed investment decisions matters to you, working with a professional buyers agent can make a significant difference.
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