Does a House Lose Value if Someone Dies in It?

When purchasing or selling a home, the idea that a house might have a lower value due to someone having died within its walls can be a concern. Restorers of old homes often face this question frequently, as houses of 150 years or more have been homes to many generations. Here, we explore this myth and discuss how it impacts real estate values.

Does a House Actually Lose Value?

According to many real estate professionals, the mere fact that a person has died in a house doesn't automatically reduce its value. The value of a house depends on a range of factors, including location, condition, and recent sales data. Many homebuyers are more concerned with practical aspects such as functionality, aesthetics, and neighborhood amenities, rather than past occurrences within the property.

For example, if you restore homes that are around 150 years old, it's likely that over the past century and a half, several people have passed away in those homes. However, few people are deterred by this fact when purchasing. As one restorer points out, 'I restore homes that average 150 years old. You can be almost certain that over a century and a half, several people would have died in the home—probably a dozen or more. Its not worth less; it just that some people or suspicious were fearful about such things.' These same homes are frequently sold successfully to buyers who couldn't care less about such unexplained occurrences.

Real-world Examples

Several real-world examples further support the idea that a house's value isn't significantly affected by someone dying in it. Consider the case of a family home where a mother passed away. Another example is a living room in a house where an uncle died. Such occurrences are a part of life, and they do not detract from the home's value. Many homes are sold without consideration of past deaths.

Even specific cases like the auction of a house next door where someone committed suicide show that the market often disregards such events. The house sold at auction just fine, primarily because it was a bank foreclosure, not due to the person’s death. Similarly, in Thailand, the belief in ghosts leading to a home’s value decreasing when someone dies, although prevalent, doesn’t universally impact all markets.

Legal and Cultural Considerations

The impact of deaths on the value of a house can vary significantly based on location and culture. In some countries, like Thailand, where ghost beliefs are prevalent, the sale of a property where a death occurred may result in a lower price. In other places, such as California, where a death must be disclosed after a certain period, the impact on the value is minimal. However, if the property was the site of a notorious murder, it could become a historical attraction or lose value due to community stigma.

It is also important to note that the requirement to disclose a death in a property varies. In California, for instance, after three years, you are no longer required to disclose a death on the property. Conversely, if a property is linked to a gruesome mass murder, its value could be affected, but this is a very extreme case.

Subjective Nature of Value

Worth is a subjective term, and it is determined by the buyer. Therefore, whether a house retains its value after a death in it can be influenced by the buyer's perception. Factors such as a child being abused, a family pet passing away, or the seller being unhappy can also influence a home’s value in the eyes of a potential buyer. Sometimes, people may be willing to pay more if something positive happened in the house, like a baby being born.

Ultimately, while the death of someone in a house may not directly reduce its value, it can affect the perception of potential buyers. However, the actual transaction price is often dictated by broader market conditions and the home's specific features. Real estate professionals often emphasize the value of a home being determined subjectively by the buyer, and this is no different when considering past deaths within the property.

Conclusion

The myth that a house loses value due to someone dying in it is a common one, but it is largely unfounded. Many factors contribute to a house's value, and while past events can affect some buyers' perceptions, they do not uniformly impact the home’s price. Buyers and sellers should understand that a home's value is subjective and influenced by a wide range of factors. Seeking professional advice can help navigate these complexities and ensure a fair transaction.