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Daytona Beach Stigmatized Property – Disclose or Not?

There are many situations when Daytona real estate agents encounter homes that have an event of some sort attached to them. Homes that are associated with psychological events or situations are considered “stigmatized properties. They are usually unsellable or sell for much less than comparable homes in the same neighborhood.

According to the National Association of Realtors, stigmatized properties "are homes where a real or rumored event occurred that didn't physically affect the property but could adversely impact its desirability". 

There are many older homes on the market where people have died. Some houses have been the scenes of murders, kidnappings, and suicides. Other houses have been occupied by someone infected with human immunodeficiency virus or diagnosed with acquired immune deficiency syndrome. 

Disclosure laws vary from state to state. Florida law does not require sellers or agents to disclose homicide, suicide, deaths, or diagnosis of HIV or AIDS infection in an occupant of real property because it does not have a "material affect" on the property. 

As a Realtor/Broker do you disclose if there was a murder or suicide at your listing? What if the owner was a scandalous person? What are your obligations regarding selling a property with a seedy past?

 Here are some measures to consider when dealing with stigmatized properties:

• Check your state’s disclosure laws
• It may be wise to disclose upfront even if you’re not required to do so.
• Determine if the stigma would change the property price or even the buyer’s willingness to purchase the property on the listing avoid potential litigation and have peace of mind
• Consider not taking a listing if you’re seller tells you not to disclose certain information or they refuse to disclose information to you about the property

 When in doubt, disclose, disclose, disclose!

Contact Team Gagliardi now for more information about Port Orange Real Estate and Daytona Beach Condos. Marty Gagliardi 386-316-5968 - Michael Gagliardi 386-316-5967. We are ready to assist you!