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#378066 - 06/05/11 06:42 AM Value On Stigma
pastmember Offline
Member

Registered: 01/22/06
Posts: 387
Loc: USA
I'm writing an offer on a home this morning for clients and there was a double murder in the home in October (owner and girlfriend). The person/persons who committed the crime were never caught and the police released very few details on this case but all indications are that it was a professional hit.

My clients have been made aware of what happened (LOTS OF DISCLOSURE HERE)and still want to move forward. The home is already priced several hundred thousand dollars under market value (with no stigma of course) but how in the heck do you place a value on what happened?!? This would be a second/vacation home and the husband is a Dr. and says that it really doesn't bother him.

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#378073 - 06/05/11 09:43 AM Re: Value On Stigma [Re: pastmember]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 4726
Loc: Vermont's North-East Kingdom
Since the crime still hasn't been solved, and the home was also the actual crime scene, might the new owners have to look forward to being subjected to periodic visits from detectives to do further investigation? That would/could be an annoyance.

The situation would probably be worse if it was a random home invasion and murder instead of appearing to be a crime against a pre-determined victim, or a family member. It doesn't sound like a high crime area. Was it made to appear as a bungled burglary?

If the Owner was one of those murdered, who are you working for? . . . . or who is selling it? Hopefully, not a suspect or "person of interest".
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

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#378100 - 06/05/11 02:01 PM Re: Value On Stigma [Re: pastmember]
Maui Offline
Moderator
Veteran Member

Registered: 01/13/10
Posts: 726
Loc: Maui, HI
Without knowing the specifics of the market, if I was representing the buyers I would expect the property to be listed 20-30% below fair market value (of a comparable property without the stigma attached to it). And I would further suspect that the seller(s) would be very open to negotiations (i.e. 90% of listed price wouldn't be insulting). Based on your description of the crime, I don't think it would bother ME as a buyer. With time (years, not months) people will forget about it and it will not be THAT much of a stigma when it comes time to sell. Best of luck.
_________________________
Visit a Maui Blog , then view our ActiveRain page and Maui Wordpress Blog for local events and market stats. View one of the best values of Maui luxury real estate in this Honua Kai Condo For Sale.

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#378109 - 06/05/11 05:49 PM Re: Value On Stigma [Re: Maui]
pastmember Offline
Member

Registered: 01/22/06
Posts: 387
Loc: USA
The girlfriend was deceased in the home and the owner was severely wounded and actually was able to call 911 and lived for several days. The available timeline indicates that this crime happened very quickly and very efficiently and no attempt was made to cover up that this was anything other than a professional hit.
This is a 10 year old 5,000 sq. ft. lakefront home in a good neighborhood and the offer has been presented.
btw...I am a Buyers Agent and the home is listed with a different brokerage.

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#378170 - 06/06/11 05:48 AM Re: Value On Stigma [Re: pastmember]
pastmember Offline
Member

Registered: 01/22/06
Posts: 387
Loc: USA
Offer was accepted at about 11:00 last night and obviously I can't release details about the sale price until it closes but I will say that I have a couple of VERY happy clients.

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#378174 - 06/06/11 06:52 AM Re: Value On Stigma [Re: pastmember]
KT Offline
Major Contributor

Registered: 01/18/05
Posts: 1525
Loc: Ohio
That's awesome about the offer!

For stigmatized properties, I think it really is in the eye of the beholder. Or well, buyer. Some things are really going to bother certain people, some aren't, depending on the property, and where it's located.

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