There’s just something extra special about a good old-fashioned ghost story. Spine-tingling tales of poltergeists and spectres often hit the bestseller list for books, TV shows, and movies. In real estate, it can make for some fun listing write-ups.
“Charming, abandoned, old house with creaking doors, and long dark passageways. Boasts the occasional jump scare, conveniently located on Elm Street. A must-see for first-time buyers and families alike.”
In all seriousness, stigma in real estate can be very real. It turns out, entire segments of the population are hesitant to move into a home simply because someone was once murdered there or it is reportedly haunted. In this post, we’ll talk about the implications of buying or selling a home with a stigma.
What Constitutes a Stigma?
A stigma is defined as a “blemish or a blot on one’s reputation.” In a market where perception is everything, a tall tale really can affect the value of a property along with the ability to sell it at any price.
If you dig deep enough or think long enough, any house could potentially have a stigma. Unless it’s a new build, chances are an incident of some kind has happened at some point. Even if the building is brand new, the land it is on is not. For some people, the grounds themselves could be the site of a rumoured curse or other unexplained event. Though the number of stigmas are only limited by our collective imagination, they tend to boil down to three categories in real estate.
- Physical stigmas: An actual physical attribute of the house, such as a termite infestation, UFFI insulation, or mold in the home. They are based in a semblance of reality, but are often blown way out of proportion.
- Psychological stigmas: A house could be in perfect condition, but difficult to sell due to reports of it being haunted, cursed, or the site of a particularly heinous crime.
- Neighbourhood stigmas: Once again, nothing is wrong with the house itself, but the neighbourhood is a different story. If crime rates have spiked, real estate values could drop all over the surrounding area.
Selling a home with a stigma is just one of the many challenges homeowners can face. Here are a few other obstacles and how to overcome them:
- Can You Sell Your Peterborough Home Remotely?
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- How To Make Selling a Home Easier During a Divorce
Your Obligations to Disclose
Do you have to tell your potential buyer if all the neighbours believe your property is home to a playful family of poltergeists or that a warlock placed a spell on it 50 years ago? Technically, these are not latent defects, so you’re not legally obligated to disclose them.
However, just because you choose not to tell your buyer doesn’t mean someone isn’t going to let the secret slip. Anyone who has ever played the game “telephone” knows precisely how difficult it is to keep any tantalizing tale under wraps. That’s why we believe it’s better to get ahead of the situation and be the one who controls the narrative.
Just because rumours of your haunting might scare away some buyers doesn’t mean that your house can’t or won’t sell. There are people who will dismiss the stigma as a silly superstition, while others may actually find it appealing. If there’s one thing we’ve learned after years of working in real estate, it’s that people have vastly different tastes and preferences. That’s why you don’t need to be overly concerned about a stigma rendering your house unsellable. Still, being honest about it is always the best practice.
If there is a latent defect (a flaw that you can’t see upon a casual inspection), you are obligated to let the buyer know. Mold, water damage, or faulty electrical wiring can cause a home to be unsafe or unsuitable. Failure to disclose latent flaws can cause legal trouble even after the new owner moves in, especially if there is evidence that you were aware of the issues before selling the house.
The Keys to Successful Selling With a Stigma
How do you go about marketing and selling a house with a stigma since it’s inadvisable to hide it? Fortunately, you have a few options.
- You can fix the issue, if possible. Most physical flaws can be rectified, which should enable you to sell the property with no major hurdles. If a buyer remains hesitant, you can show any and all documentation to prove that the issue is taken care of once and for all. The key is to work with a skilled contractor who has an excellent reputation in the area.
- You can market around the stigma. Remember that one person’s deal breaker is another’s non-issue. The trick to a successful sale is to market your home extensively to as many qualified buyers as possible.
- If all else fails, you can offer a discount. Nearly any property will sell if the price is low enough. This may be our last resort, but it’s an effective strategy if you’re relying on your sale to move on to your next chapter.
Still wondering if Peterborough is the place for you? A few of our comparisons might help:
- Peterborough Vs Barrie: What’s the Best GTA Alternative?
- Peterborough vs. Other Small Cities in Ontario
- Living In Toronto Vs Peterborough: What’s Better?
Should You Consider Buying a House With a Stigma?
The question about buying a house with a stigma can be even more perplexing than selling one. At least you have the advantage of knowing what you are getting into.
If the house is otherwise in excellent condition, you might be able to buy it at below market value – as long as a few ghost stories won’t keep you up at night. The only real issue is the resale value of the property if you decide to sell shortly afterwards.
You may not be bothered by the stigma, but someone else might be! That said, there’s truly something for everyone when it comes to real estate. Buying or selling a home with a stigma can come with a few extra challenges. When you approach your decision with extensive background research and some expert guidance, stigmatized properties can actually be a worthy investment.
Do you want to talk more about your Peterborough real estate opportunities? Our knowledgeable agents are happy to guide you toward your goals. Reach out today to team@jeffandkatie.ca or call 705-243-9797 with any questions you have.
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