Stigmatized Properties and Housing Values: An Exploratory Study
OHO-D-18-00206 March 2019
David Chapman, University of Central Oklahoma; Marty Ludlum, University of Central Oklahoma; Ramachandran Vijayan, Oklahoma City Community College; Weichu Xu, East Stroudsburg U. of Pennsylvania; Burle Steelman, University of Central Oklahoma; Dan Range, Coventry University; Deependra Dehariya, University of Central Oklahoma.
Abstract
The purpose of this research is to provide an understanding of the potential effects that stigmatized properties may have for potential house purchasers decision making, as well as how a purchasers willingness to pay might be impacted. The originality of this research emerges from the distinct lack of empirical evidence in the current literature base with only one such study having investigated this phenomena in the past. Most research that has investigated aspects of stigmatization, have focused on the analysis of transaction prices from a quantitative perspective, with limited scholarly attention paid towards the psychological factors that may effect a purchasers willingness to purchase a property, their willingness to pay for a stigmatized property, as well as understanding if real estate agents should fully disclose stigmatization to prospective buyers. The study employed a qualitative survey that was designed to answer these fundamental gaps in the literature base, through a sample of 410 individuals. The results demonstrated that while some ambivalence existed, there was general consensus that such properties would incur a reduction in price, and would impact upon the selling potential of the property, if such stigmas were fully disclosed. Keywords: Stigmatized Properties; Buyer Behavior; House Prices; Willingness to Pay 1. Introduction Manuscript Click here to download Manuscript 2015 Stigma Property Survey paper revised 11August2018.doc Click here to view linked References 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 2 The current real estate knowledge base pays significant attention to the role of amenities in understanding residential property values. These studies have focused on analyzing the impact of a diverse range of externalities and whether positive or negative effects have occurred. From a negative perspective, research has explored issues such as air quality and pollution (Murdoch and Thayer, 2017), land contamination (Simons and Saginor, 2006), crime (McIlhatton et al., 2016), underground storage tanks (Simons et al., 1997), wind turbines (Hoen and Atkinson-Palombo, 2016), fracking (Throupe et al., 2013), and power lines (Wyman and Mothorpe, 2018; Seiler, 2014). Other research has examined the positive impact of externalities on property values, including amenities such as ocean views (Wyman et al., 2016; Mothorpe and Wyman, 2017), open space and parks (McCord et al., 2013; Anderson and West, 2006; Irwin, 2002), school quality (Wada and ZahirovicHerbert, 2013), and transit corridors (Kilpatrick et al., 2007). While the extant literature is saturated with empirical investigations in to the quantitative impact on residential property values, and predominantly analysed from sales transactions, there is less attention paid to the factors that influence a buyers willingness to pay (Seiler, 2014) from a behavioral perspective. Indeed, there is even less knowledge available on the impact that stigmatized properties, including those related to issues such as crime, health/illness, properties in proximity to death-related facilities (such as mortuaries, funeral homes) and cemeteries, have on the purchase decision. This paper seeks to develop the literature in this area through an analysis of the likelihood that individuals would purchase properties stigmatized by death, the potential rate of devaluation that such stigmatization would have, and whether such stigmatizations should be disclosed to the buyer. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 3 The paper is structured as follows. Section two explores the issues stemming from the literature base concerning death-related stigmatization. Section three presents the methodological framework used to underpin the empirical analysis conducted by this research. Section four brings forward the results of the study, with section five drawing conclusions. 2. Literature Review The impact of physical defects of residential properties on their value is well documented in many studies, however the impact that psychological influences have, is not understood to any great degree. Larsen and Coleman (2001) highlight that a property may be in an excellent physical condition, but it may be stigmatized by a psychologically perceived condition. These conditions may include the residential property being the scene of a murder, suicide, or natural death, as well as being potentially haunted, or related to death in some manner (such as cemeteries and mortuaries) which may cause some form of emotional or psychological discomfort to the buyer (McEvoy, 1991). Questions then arise around the comparability of these properties with other properties that do not have similar psychological influences or stigmatizations (Larsen and Coleman, 2001), as well as other concerns such as disclosure by the broker/seller. Disclosure of Information 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 4 In recent times, significant advancements in technology and data, driven by the rapid growth in online activities and open data strategies, has provided real opportunities for prospective buyers to conduct their own due diligence on properties and neighborhoods. Real estate agents are governed by different regulations in different states and countries, however, most have mandatory disclosures on known physical defects in the home, lead based paint, radon gas, and other related challenges such as zoning. Nevertheless, there is no common approach utilized for disclosure of events and characteristics that would cause a property to be considered stigmatized and as a consequence it is a potential ethical dilemma for real estate agents. Effects of Stigmatised Properties There is extremely limited research detailing the impact of stigmatized properties on real estate value from a psychological perspective with previous studies mostly focusing on the effects of external factors on housing transactions. The literature presents many examples of how violent crime affects the sale price of properties. Rosenbloom (2006) highlights that the apartment where Menendez brothers killed their parents in 1989 lost more $1 million in market value when it finally sold as a consequence of the stigma. In the case of Reed v King (1983) the sellers of a property were sued for not disclosing that a woman and her four children were murdered in the home ten years earlier. The buyers claimed that the stigma from the past murders decreased the property value by 17% with the California Court upholding this claim. In research by Abelson et al. (2013) the propensity for violent crime was found to negatively impact detached property values by 5.6%. Similarly, Tita et al. (2006) and Boggess et al. (2013) articulate a similar narrative in their respective studies. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 5 Other issues such as proximity to sex offenders homes and their effects on value have also been explored with research by Caudill et al. (2015) finding that property values within 0.1 miles of a sex offenders residence negatively affected value by 14% and 7% if the properties were within a 1 mile radius. Indeed, other research by Pope (2008) found that a sex offender moving in to a neighborhood resulted in a 2.3% fall in property values. Another type of stigmatized property is that of paranormal phenomena (haunted houses). While no significant empirical analysis exists demonstrating the potential impact that such locations may have on house prices, there is limited evidence highlighting that in some cases, houses appreciated in value despite owners knowing the stigma prior to purchasing (Cavanaugh, 2002). Research has also been conducted on the impact of places associated with death. Ludlum (1989) indicated that while funeral homes are a necessity, they have a public relations problem which affects the value of adjoining properties. The fear is not based on the mortuary being a commercial enterprise (parking and noise issues), but because of the relationship to death. The stigma of the practical aspects of death are ironic. Victorian era homes had ‘coffin corners’, stairwell niches which allowed a coffin to be maneuvered down the stairs (Rosenbloom, 2006) and most people died at home. Despite this, there is a significant gap in the current literature base concerning the potential impact that stigmatized properties may have on buyer decision making. The research presented in this research helps to fill this gap through an empirical investigation in to 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 6 whether potential purchasers would buy stigmatized properties and the likely effect, stigmatization would have on value. The next section of the paper reviews the methodology used for this research. 3. Methodology The research is designed to provide an informed understanding of the perceptions of stigmatised properties and their impact on housing values. As such, there was a need to develop these understandings through questions that mapped back against the gaps identified in the literature and which enabled us to address these gaps through the responses achieved. The gaps realized included a distinct lack of knowledge relating to whether the seller should inform the buyer about stigmatizations, how much these stigmatizations impact the sale values of the properties, and whether those questioned would buy a stigmatised property. As a consequence, the question set developed corresponded directly with these themes. The types of stigmatised properties utilised within the research were that of those associated with paranormal phenomena, locations of violent crime, HIV/AIDS related deaths, and properties in proximity to funeral homes/mortuaries. The research was conducted using a survey instrument which allowed a greater number of respondents to be reached than what one-to-one interviews would have enabled, in a more efficient manner. In total, 668 surveys responses were delivered to potential respondents, with a response of 410 being used for the analysis representing a response rate of 61.4%. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 7 Data responses were analysed using the identified questions discussed previously. The study was conducted with business students across three Universities in the United States. Students were used as they were deemed to be future residential property buyers and as such, provided a strong cohort for perspectives related to buyer decision making. 3.1 Descriptive Statistics Descriptive statistics for the respondents were collected and are presented in Table 1. Control questions were utilized to understand the spread of responses across different departments, as well as by demographics. Most respondents (70.7%) were business majors, the balance were liberal arts (4.2%), fine arts (.24%), and other (24.9%) majors. Respondents reported being in the following academic years: first (20.3%), second (10.5%), third (27.5%), fourth (39%), and fifth (2.7%). In our sample, males outnumbered females 63.7% to 36.3%. Ages ranged from 18 to 51, with 73.7% between the ages of 18- 23, with another 16.1% between ages 24-26. The mean age of the respondents was 22.54 years. Only 34 respondents (8.3%) reported being married and almost 73% of respondents reported being employed at least part time. Regarding political views, 38% identified as very conservative or conservative, 41.7% identified as independent, and 20.2% identified as liberal or very liberal. The bulk of our sample identified as moderately religious (44%), while almost equal proportions identified as very religious (18.1%), slightly religious (19.9%), or not religious (17.9%). 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 8 Table 1. Descriptive statistics for sample surveyed Number Percentage Total surveys completed 668 Samples used for analyses 410 Year in school One 83 20.34 Two 43 10.54 Three 112 27.45 Four 159 38.97 Five 11 2.70 Total 408 100.00 Gender Males 260 63.73 Females 148 36.27 Total 408 100.00 Employment status Not employed 110 26.96 Part-time 213 52.21 Full-time 85 20.83 Total 408 100.00 Marital status Married 34 8.33 Not married 374 91.67 Total 408 100.00 Age 18-23 300 73.53 24+ 108 26.47 Total 410 100.00 Political views Very conservative 19 4.66 Conservative 136 33.33 Independent 170 41.67 Liberal 73 17.89 Very liberal 10 2.45 Total 408 100.00 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 9 Religious views Very religious 74 18.14 Moderately religious 180 44.12 Slightly religious 81 19.85 Not religious 73 17.89 408 100.00 Believes in ghosts 181 45.14 Does not believe in ghosts 220 54.86 401 100.00 4. Findings and Discussion Understanding the perceptions of potential buyers on stigmatized property and their impact on value is important for understanding demand, as well as realizing the potential effect that they could have for both buyers and sellers. In trying to develop these understandings, the research sought to identify responses across a number of different themes related to disclosure, likely devaluation of the stigmatized property, and preference for purchasing such properties. The results of this analysis are presented for each stigmatized property type identified previously. 4.1 HAUNTED HOUSES First we asked if buyers should be told that a house is haunted. Our findings were 70.3% said yes; 29.7% said no. Since the 70.3% is higher than the percentage of responses who believed in haunted houses (45%), many of those who did not believe in haunted houses still thought potential buyers should be informed. We also asked respondents how much 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 10 the reputation of being haunted would affect the value of the home. The average for all respondents was a price decrease of 16.55% for a haunted house. The breakdown of how much haunted houses should be devalued is shown in Table 2. Table 2. Haunted House Priced Decrease Change Number percent None 194 36.33% 1-10% drop 162 30.34% 11-20% drop 53 9.93% 21-30% 30 5.62% 31-40% 16 3.00% 50% 46 8.61% 51-90% 19 3.56% 100% drop 14 2.62% Overall, one-third of respondents thought the haunted houses did not affect the value at all, and another one-third thought the price affect was less than 10%. However, a small but significant number of respondents (over 6%) thought a haunted home was a drastic decrease in value (over 50%). Others did not believe in haunted houses (55%), and did not believe haunted houses would diminish the property value (36.33%) but still thought a potential buyer should be informed. Finally, we asked whether a student would purchase a haunted house for their own residence. Our findings were 39% would live in a haunted house while 61% would not. Interestingly, some respondents who did not believe in haunted houses (55%) did not want to live in one (39%). 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 11 4.2 NEXT TO A MORTUARY Respondents were asked whether they should inform a home buyer that a mortuary was close proximity. The results indicate that 83.6% of those questioned responded yes, while 16.4% responded no. This result was surprisingly high since (unlike haunted houses) a nearby mortuary could be easily determined by a physical inspection. The research also investigated how much the property value would be affected by being next to a mortuary. The results found an average decrease of 17.3%, which is slightly higher than the decrease for a haunted house (16.55%). A breakdown of the effect of a mortuary in proximity to a property and how it would likely devalue a home is shown in Table 3. Table 3. Mortuary Priced Decrease Change Number percent None 147 27.02% 1-10% drop 171 31.43% 11-20% drop 82 15.07% 21-30% 50 9.19% 31-40% 20 3.68% 50% 48 8.82% 51-90% 18 3.31% 100% drop 8 1.47% Over a quarter of completed surveys (27%) indicated that a mortuary would not change the value of the home. Another 31% indicated that a price change would be minimal (less than 10%). However, over 13% indicated the value loss would be severe (over 50% of value). We also asked whether our sample would purchase a home next to a mortuary for their residence. Over two-thirds (68.5%) said no, while only 31.5% would live proximate to a 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 12 mortuary. Ironically, more people are willing to live in haunted house than close-by to a mortuary. While both are associated with death, the difference may be the commercial nature of the mortuary, and the number of visitors to the business. 4.3 LOCATION OF VIOLENT CRIME Similarly to the previous stigmatized property types, respondents were asked if they should inform a potential buyer that a murder had occurred in a residence. Responses indicated that the majority (75.7%) believed that they should, with the remainder (24.3%) suggesting that potential buyers should not be informed. Interestingly, fewer favored disclosure of the violent crime (than a mortuary) even though the violent crime could not be easily detected upon inspection (unlike the mortuary). The reputation of a violent crime decreased the value by 24%, much more than the other factors considered in this study. A breakdown of how much a murder would potentially decrease the value of a home is shown in Table 4. Table 4. Murder House Priced Decrease Change Number percent None 145 27.05% 1-10% drop 125 23.32% 11-20% drop 78 14.55% 21-30% 48 8.96% 31-40% 20 3.73% 50% 62 11.57% 51-90% 33 6.16% 100% drop 25 4.66% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 13 Over half the respondents stated that the reputation of a home where a murder took place would be marginal (10% or less), with 22% indicating that prices would be devalued by approximately 50% or more. Indeed, it was found that being stigmatized as a location of a violent crime would generate a much higher negative impact than any of the other types of death stigma. When asked whether the respondents would purchase a residence which had been the location of a murder, only 32.4% indicated yes, while 67.6% indicated no. 4.4 LOCATION OF HIV/AIDS VICTIM Finally, respondents were asked whether a potential buyer should be told that the former resident of the home had HIV/AIDS. In our sample, 54.5% indicated the buyer should be informed, while 45.5% said that they should not be informed. The average decrease in value for the home of an HIV/AIDS victim was 18.25%. The breakdown of how much an AIDS victim devalued the house is shown in Table 5. Table 5. HIV/AIDS House Priced Decrease Change Number percent None 261 48.60% 1-10% drop 107 19.93% 11-20% drop 30 5.59% 21-30% 29 5.40% 31-40% 10 1.86% 50% 48 8.94% 51-90% 21 3.91% 100% drop 31 5.77% Nearly half the respondents (48.6%) indicated that a former resident’s HIV/AIDS status would have no effect on the value. When asked whether they would purchase this home for their personal residence, 47% said yes, while 53% said no. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 14 The authors would argue that these results are heavily influenced by time. Fears of HIV/AIDS, and the resulting stigmas have been slowly replaced, year by year, with information about the transmission of the virus. 4.5 Statistical Analysis of Results The research also examined student differences based on several demographic factors to see if relationships existed. The analysis utilized four research hypotheses for this portion of the project. The null hypotheses are listed below. Hypothesis 1. Age did not affect the attitudes towards stigmatized properties; Hypothesis 2. Gender did not affect the attitudes towards stigmatized properties; Hypothesis 3. Having children did not affect the attitudes towards stigmatized properties; and Hypothesis 4. Marital status did not affect the attitudes towards stigmatized properties. The research conducted chi-square analysis of all stigmatized property types. In the context of belief in ghosts, the variables producing significant results were gender of the respondent, whether the respondent was a real estate major, and whether or not the respondent had taken a real estate course. Table 6. Chi-square analysis for belief in ghosts 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 15 Chi-square Degrees of freedom Female 5.30* 1 Year in school 2.51 4 Major 1.83 3 Real estate major 5.42* 1 Had a real estate course 4.93* 1 Political views 7.61 4 Employment .53 2 Marital status .03 1 Religious intensity 1.73 3 Note: + p<.10; * p<.05; ** p<.01; *** p<.001 Indeed, gender differences are also noted in several other analyses. It is again noted in these analyses of whether or not to inform the potential buyer that a house was reportedly haunted and whether or not to notify that a homicide/suicide had occurred in the residence. Table 7. Chi-square analysis for informing buyer of haunted house Chi-square Degrees of freedom Female 4.96* 1 Year in school 4.05 4 Major 3.95 3 Real estate major 2.59 1 Had a real estate course .35 1 Political views 6.77 4 Employment 1.21 2 Marital status .66 1 Religious intensity 4.50 3 Note: + p<.10; * p<.05; ** p<.01; *** p<.001 Table 8. Chi-square analysis for informing buyer of murder/suicide Chi-square Degrees of freedom Female 4.60* 1 Year in school 3.81 4 Major 1.29 3 Real estate major .27 1 Had a real estate course .01 1 Political views 4.92 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 16 Employment 4.78+ 2 Marital status .01 1 Religious intensity .18 3 Note: + p<.10; * p<.05; ** p<.01; *** p<.001 To investigate the results holistically, logistic regression was performed for each of the binary response questions. Results of this suggested that no statistical significance was present in questions related to, whether a prospective buyer should be notified that a house may be haunted, notifying a prospective buyer that a house is located next to a mortuary, notifying a prospective buyer that a house had a murder or suicide occur in the residence, or notifying a prospective buyer that a previous owner died of HIV/AIDS in the home. The only models producing significant results were related to whether the real estate agent would buy a reportedly haunted house or a house in which a murder or suicide had occurred. See Table 9 below. Table 9. Results of logistic regression for each of the listed questions. Ghosts Haunted tell Haunted buy Mortuary tell Mortuary buy Murder tell Murder buy HIV/AID S tell HIV/AID S buy Year in school -.02 (.11) .19 (.12) -.28* (.12) .25 (.16) -.06 (.12) -.01 (.13) -.02 (.12) -.05 (.11) -.04 (.11) Major -.04 (.09) .11 (.10) .02 (.09) .07 (.13) .09 (.09) .07 (.11) .05 (.10) -.14 (.09) .04 (.09) Real estate major -1.06 (.67) -.91 (.56) 1.46* (.68) -1.66** (.63) .59 (.54) .37 (.69) .84 (.56) -.60 (.54) .51 (.56) Female .44* (.22) .47+ (.25) -.57* (.23) .48 (.33) -.14 (.23) .50+ (.27) -1.05*** (.25) -.24 (.22) .13 (.22) Real estate course -.42 (.34) .36 (.39) .52 (.34) .34 (.53) .35 (.34) .12 (.15) .55 (.34) .05 (.33) .21 (.33) Political views .17 (.13) .07 (.14) -.15 (.13) -.04 (.17) -.02 (.13) .14 (.15) -.01 (.13) .06 (.12) .17 (.13) Employment .06 (.15) .08 (.17) .25 (.16) .22 (.22) .10 (.16) .22 (.18) .05 (.16) -.13 (.15) .11 (.15) Married .001 (.46) -.19 (.17) .95+ (.50) -.02 (.78) .73 (.50) .24 (.53) .14 (.48) .25 (.44) .52 (.46) Age .01 (.04) -.02 (.04) .10* (.04) .04 (.06) .05 (.04) .01 (.05) .03 (.04) -.05 (.04) .05 (.04) No. of children -.30 (.31) .10 (.33) -.17 (.31) -.001 (.47) .02 (.31) .11 (.36) .12 (.31) .23 (.30) -.04 (.30) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 17 Religious views -.08 (.11) -.22 (.12) .17 (.12) .12 (.16) .08 (.12) -.01 (.13) .14 (.12) -.14 (.11) .19+ (.11) N 408 405 403 407 407 408 407 408 403 Model significance n.s. n.s. p<.001 n.s. n.s. n.s. p<.001 n.s. n.s. Note: + p<.10; * p<.05; ** p<.01; *** p<.001 In the model regarding whether the person would purchase a purportedly haunted house, it appears that respondents that have been at college longer, and females, are less likely to make the purchase. Real estate majors and married respondents were more likely to purchase the residence in question. Initial examination of the three value-based variables indicated that each was positively skewed. For each of the questions regarding how the value of the home would be impacted by the various scenarios, ordered logistic regression was conducted after transforming the dependent variables to categorical, ordinal variables. See Table 10 below. Table 10. Ordered logistic regression results. Haunted house value Murder/suicide house value HIV/AIDS death house value Year in school -.13 (.10) -.04 (.10) .07 (.11) Major -.13 (.08) -.04 (.08) -.04 (.08) Real estate major -1.26* (.56) -.40 (.48) -.51 (.61) Female .73*** (.20) .84*** (.19) .36+ (.20) Real estate course -.23 (.30) -.31 (.29) -.99** (.34) Political views -.07 (.11) -.02 (.11) -.17 (.12) Employment -.28 (.14) -.20 (.13) -.34 (.47) Married -.89* (.40) -.57 (.39) -.33 (.47) Age -.08* (.04) -.04 (.03) -.11* (.05) No. of children .16 (.27) -.24 (.27) -.29 (.37) Religious views -.10 (.10) -.11 (.10) -.23* (.11) N 408 402 399 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 18 Model significance p<.001 p<.001 p<.001 Note: + p<.10; * p<.05; ** p<.01; *** p<.001 All three questions produce statistically significant models. In each model, female respondents indicate the value of each of the properties in question would be devalued more than their male counterparts, although in the HIV/AIDS death property, the result merely approaches significance. Regarding the haunted residence it is apparent that real estate majors purport less devaluation of the property, as do older, and married respondents. Regarding the impact on the value of the residence in which the owner died of HIV/AIDS, respondents having taken a real estate course, older respondents, and less religious respondents report similar effects. Other results were surprising. No statistically significance was found when the religion of the respondent was examined. We expected a large result because of the tie between religion and death issues. Religion is highly correlated with death anxiety (Dezutter, Luyckx, and Hutsebaut, 2009). Death anxiety distinction may be based on intrinsic versus extrinsic religiosity (Cohen, et al., 2005). However, in the presented research, the study lacked religious diversity, with an overwhelmingly protestant sample. Other religions were too small to be significant. 5. Conclusions The research was concerned with understanding how stigmatized properties are impacted by psychological processes of prospective purchasers. Very little research has explored the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 19 topic from a pre-sale perspective, with an extensive literature base concerned with externalities using sale price data. The research found that while there was diversity in opinion across the study sample, there was general consensus that stigmatized properties would incur a reduction in what a potential purchaser was willing to pay, as well as have a negative effect on the sale potential if the stigma was disclosed. References Aalberts, B. & R. 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