Agent fined for "Murder House"

[Lplate]

Beach Bum
Hi, I would not contest your bid for that house. There are less risky propositions.

Property investment is more about people than property. I accept that my personal preferences don't count for much (although I wouldn't live in it), but the big downside is that an unknown but probably large percentage of the public incl tenants wouldn't live in it either. I reckon a tenant could walk from a lease if he/she hadn't been adequately informed prior.

As for the REI, its claims to be 'professional' and 'represent the industry' wear a bit thin when it does nothing practical to discipline the 'cads' of the game.

LPlate

 

[arriety]

what a facsinating discussion!

I agree with Lissy on this point:

"In this case, with the murder being so widely publicised and no doubt the house being well publicised too, it's quite likely that curiosity seekers will drive by to look at the house or even stop and stare."

Any property that has had a lot of publicity (good or bad) is going to affect the investment potential either by reducing (or increasing)the price or tenants not wanting to live there. Take the Frederick West house in UK, an even more extreme example, where murderered victims were buried -few people would want to live there but eventually someone will might want to buy it for some ghoulish purposes.

I think Kev is correct in saying the agent would have been wise to disclose such a notorious story surrounding the house - sure it would take longer to sell, but eventually someone would buy it who had no interest in its past, Some agents, however have a 'whatever it takes' to sell attitude.

 

[Beach Bum]

The point is there are just so many variables in real estate transactions, so many shades of gray that are impossible to legislate for.
And we'll never know the real story behind it all. What if the agent that sold it did'nt list it, which makes me wonder what information do they have to share around the office, or to multilist agents, or even interstate agents or marketers.
It all seems to get deeper & deeper with no real way out.

 

[Lilith]

The buyers in this case are ethnic Chinese. Just as a rule of thumb, and this is of course entirely cultural, an average ethnic Chinese won't consider living in any dwellings where a person was murdered, not to mention a crime of such severity. Death of natural courses (old age, illness, natural disasters) is acceptable. In Hong Kong, there is a very popular real estate for-charge database documenting all houses/units where previous murders/suicides happened, dating back to over 20 years ago, and as you can imagine, these places are usually now occupied by non-Chinese at a seriously discounted market price.

I think the key here should be whether the agent knew of the history of this home and didn't disclose it in due course. Or looking from a positive angle, somebody should start a business documenting the venues of previous murders and make it available to potential buyers for a fee.