What is a Stigmatized Property?

Friday Feb 08th, 2019

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In real estate, a “stigma” is a non-physical, intangible attribute of a property (you can’t see it) that may elicit a negative reaction on the part of a potential buyer.

Some examples include:

A murder or suicide occurred at the property
There are reports that the property is haunted
There was a former grow-op on the property, even if it has been fully remediated
The property is located next to a gas station, power lines or a cemetary

Different people are bothered by different things.  Even if the occurrence that is considered a stigma doesn’t bother you personally, you should be aware that if you purchase a property with a stigma, it may be more difficult to sell in the future.

Make sure you communicate with your Realtor if there is a potential stigma that makes you uncomfortable or that may deter you from considering to purchase.


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