Buying a home can be stressful enough without discovering it has a dark history. But what if you live next door to a house with a stigma? According to the National Association of Realtors, a stigma is a psychological negative impact on a property based on something not physical that a potential buyer might be wary of, like a violent crime, haunting, suicide or other tragedy. (1)
And while those stigmas can reduce property values or make selling difficult, they also create emotional challenges that no spreadsheet can measure. Recently, Jake from Boise, Idaho, called into The Ramsey Show with a dilemma — whether or not he and his wife should move after a murder occurred in the house next door. (2)
His wife doesn’t feel safe in their home, but moving in today’s market brings its own challenges. Here’s what Ramsey told the couple, how stigma can hurt a home’s value, and what to look for when buying to avoid a property with a troubled past.
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Ramsey weighs in on fear, safety and the real cost of stigma
According to appraisers like McKissock, the effect of stigma on a home’s value varies and factors include legal disclosure and supply and demand in that particular area. (3) The stigma is stronger when the incident is recent or well-known, so even properties with a violent past can see a gradual increase in value again after a period of time. (4)
In Jake’s case, the murder was a domestic incident — a family member killed another inside the home. After learning more about the situation, Ramsey offered his advice, saying, “…It’d be logical to be afraid if this was a random act of crime in the neighborhood. But this was associated with the family… a family member did this to another family member.”
Because it wasn’t a random act or sign of neighborhood crime, Ramsey told Jake there was little practical reason to feel unsafe. Instead, he encouraged Jake to support his wife by helping her get therapy to manage the trauma, emphasizing that their financial stability shouldn’t be upended by fear alone.
But even if the family wanted to move, today’s mortgage market doesn’t make it easy.
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Why moving might cost more than staying put
According to Fannie Mae, mortgage rates are expected to be 6.4% by the end of the year. (5) That’s far higher than the sub-3% loans many homeowners locked in just a few years ago. Selling now would mean trading in a low monthly payment for a much more expensive one, unless they’re paying cash or making a large down payment.
Home prices are also historically elevated, with millions across the country not able to afford homes, so buyers often find themselves priced out of safer or more desirable neighborhoods. (6) Even though experts predict some modest easing of rates into 2026, nobody is forecasting a return to the ultra-cheap borrowing of the 2010s. For many families, that “rate lock” effect is reason enough to stay put. (7)
So, what does staying really mean? You keep your current mortgage, avoid moving costs, and hold onto your equity. On the other hand, you face the emotional toll of living near a crime scene, and if you do decide to sell later, your property might be impacted by the stigma.
Moving might give some emotional relief and maybe getting into a better neighborhood, but it could come at the cost of a bigger mortgage payment, transaction fees and a tough market. If you can’t comfortably afford the shift, uprooting your life might just replace one problem with another.
How to avoid buying a home with a troubled past
If you’re shopping for a home in today’s market, here’s some homework you can do to investigate before you buy:
Check the property’s background. Use public databases like the National Sex Offender Registry, local police crime-map tools, or court record searches for the address. You can also search the home’s address in Google News or local media archives to spot past incidents.
Understand disclosure laws in your state. In most states, sellers don’t have to reveal deaths, crimes or other stigmatizing events unless asked directly. It’s often up to the buyer to ask pointed questions or have their agent investigate local records.
Consider the resale value of the home. Even if you’re comfortable living near or in a stigmatized property, future buyers may not be. Consider this from the start of the homebuying process.
Living near a stigmatized property highlights how personal safety, emotional wellbeing, and financial sense often pull in different directions. While fear is a natural response to tragedy, moving isn’t always the smartest or most affordable solution, especially in a housing market defined by high prices and locked-in mortgage rates. In the end, the true cost of a home isn’t just its market value, but how well it lets you feel both secure and stable where you live.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
National Associations of Realtors (1, 4); The Ramsey Show (2); McKissock Learning (3); Fannie Mae (5, (7); Housing Resource Center (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.