While researching a post on stigmatized houses, I came upon the names Larsen & Coleman, professors at Wright State University in Dayton, Ohio. They have done a number of impact studies on property values and sales prices. The one I found particularly interesting was published in 2002. It studied the impact of the nearby presence of sex offenders on sales prices of real estate in Montgomery County, Ohio during 2000.
Their findings :
1. On average, houses located within one-tenth of a mile of a registered sex offender sold for 17.4% less than similar houses located farther away;
2. houses located within between one- and two-tenths of a mile from a sex offender sold for 10.2% less;
3. houses located within between two- and three-tenths of a mile from an offender sold for 9.3% less.
Sex offender notification laws vary by state. In Ohio, offenders must register with the County Sheriff. Depending on the offence, the sheriff will notify the neighbors living closest to the offenders. Brokers and interested persons may contact the office or search online.
According to researcher Professor Joseph Coleman, “once that information is made available to the public, we have found that it has an effect on the price of houses.” Noting the findings, Professor Larsen added, “if 17 per cent is the average drop in sale price, then there are other sellers who took a much larger hit.”
The researchers point out that they were only studying the impact on sales prices not appraisal value or appreciation value, which they say do not typically decrease.
The study included 3,200 sales transactions.
For more information on the study, contact james.larsen@wright.edu or joseph.coleman@wright.edu.
To use the Internet to locate registered sex offenders in your area go to Scanusa. Depending on the state you are searching, it’s as easy as typing in a zip code or county. Links take you to photographs of the sex offenders and their addresses.
Another useful source is the Klaas Kids Foundation. The website has useful links to various state and county sex offender records.
Questions:
- Is it the responsibility of Real Estate Agents to inform buyers & renters about the possibility that a potential neighbor may be a sex offender?
- Is it the responsibility of the seller or landlord to inform the Real Estate Agent ?
- Should this be a standard question all buyers ask agents, owners, landlords, etc…?
- Is it more along the lines of don’t ask don’t tell?
I would be curious about anyone’s real life experience regarding the disclosure or non- disclosure of neighboring sex offenders to potential buyer clients or tenant prospects.
I’m writing as of October-2007. We have a registered sex offender living two doors down. This is a neighborhood of homeowners, so naturally, we are affected by this man who committed six counts of indecent liberties against his granddaughter. In fact, 95% of all convicted sex offenders in North Carolina have fewer charges against them than my neighbor.
Three days after his crime, he transferred joint ownership of his property to sole ownership in his wife’s name. And less than a month before the Governor signed into law prohibiting sex offenders from living within 1,000 feet of a school, this man (Sam Wooten) pleaded guilty to the crimes so that he could be grandfathered in (his home is approx. 750 feet from a school, greenway, park, day care, and bus stop).
Does anyone know of any legal precedents that give us the right to sue registered sex offenders that drive down property values?
Very interesting question Ed. I am not aware of any cases but it seems like a good argument.