Buying stigmatized properties: Murder houses often sell at discounted prices

While some individuals avoid properties where a murder has occurred, others are willing to make them their permanent homes and even pay a premium.

In Santa Clara, CA, a house recently listed just months after news emerged that a Google engineer killed his wife inside sold for well over the asking price at $2.1 million. Some buyers seem to find the bad history less daunting than another bidding war in this competitive housing market.

Most murder homes, however, tend to remain on the market longer and sell at significant discounts. For instance, Nicole Brown Simpson purchased her Brentwood condominium for $625,000 in January 1994. After the murders of Brown Simpson and Ron Goldman on the property, it was listed for sale in 1995 for $795,000 but did not sell until 1996 for $520,000. In 2006, following a remodel and an address change, it sold again for $1.72 million.

Similarly, Erik and Lyle Menendez murdered their parents in their Beverly Hills home in 1989. The mansion was bought by the Menendez family for $4 million a year earlier and has been sold twice since the murders, including this March for $17 million. Forensic appraiser Orell Anderson estimates that this price was roughly 25% below market value.

According to the National Association of Realtors®, murder homes fall under "stigmatized properties," which are challenging to sell due to their histories of violent crime or proximity to cemeteries or other stigmatized locations. This stigma can significantly affect property values; many states require sellers to disclose if a murder has taken place in their house.

Connecticut-based real estate agent Kate Joynt notes that disclosure requirements vary by state: “Some states require the information and some don’t. If you go to closing and you don’t know, you’re pretty much screwed.” She adds that how long these properties stay on the market is “directly related to the sellers’ willingness to discount it.”

Joynt also mentions that notoriety can attract unwanted attention from true-crime enthusiasts but believes some buyers are indifferent: “I also think there’s just a faction of people who just aren’t going to care...for the right price.”