Personal Finance

Do real estate agents have to disclose a death in a house? What to know

Published

2 months ago

October 21, 2024

Matt Champlin | Moment | Getty Images

When a real estate agent works with a prospective homebuyer, they’re required to point out physical or material defects in the property.

A death on the property? It depends on the state where the house is located. In most states, death doesn’t count as a material defect requiring disclosure.

Some homes are considered “stigmatized properties,” or dwellings that have been “psychologically impacted by a past or suspected event on the property, but has no physical impact of any kind,” according to the National Association of Realtors.

Stigmatizing events include murder, suicide, alleged hauntings or a notorious previous owner, NAR noted.

Different people interact with stigmatized properties in different ways.

Harrison Beacher

real estate agent and managing partner at Coalition Properties Group in Washington, D.C.

Which states require disclosure of death

Listing agents will have different requirements state-by-state on what to disclose to a buyer. Most states don’t have any death disclosure requirements.

Among those that do, rules can be straightforward and explicitly require prior death to be disclosed to homebuyers. Even those rules may only apply to recent deaths or more stigmatizing events such as murder.

In California, for example, a seller must disclose if someone died in the house within the last three years.

Meanwhile, in Alaska, the listing agent must communicate if any known murders or suicides happened in the last year. South Dakota requires sellers to disclose deaths within the last 12 months.

Regulations will depend on the stigma in question. In New York, a seller doesn’t need to disclose if the house was the site of death or crime. But if a seller has made claims of paranormal activity in the home, they have to inform the buyer of supposed ghosts in the property, experts say.

Often, it falls on the homebuyers to directly ask the agent about the property’s history. States such as Georgia do not require real estate agents or sellers to disclose upfront if the home was the site of a death. But they have to be truthful if a prospective buyer inquires.

Outside of what the disclosure laws are in a specific state, listing agents have a fiduciary responsibility to the sellers, said Harrison Beacher, a real estate agent and managing partner at Coalition Properties Group in Washington, D.C.

“If somebody asks me about it, I can point them towards empirical resources to get answers, but I’m not under any requirements to go into detail,” said Beacher.

Here’s what homebuyers should know about properties that have been stigmatized by murder, suicide, alleged hauntings or notorious prior owners, and how to find more detail about the home’s history.

Who buys stigmatized properties?

Stigmatized homes can be a “turnoff” for homebuyers who believe in ghosts or spirits, said Daryl Fairweather, chief economist at Redfin, an online real estate brokerage firm.

“Some people are spooked away,” said Fairweather, while others might “seek out those homes.”

Nearly three-quarters, 72%, of potential homebuyers said they would buy a “haunted” house for a lower price, according to a new report by Real Estate Witch, a data site owned by Clever Real Estate. The site polled 1,000 U.S. adults in September to discover their views on buying and selling supposedly haunted houses.

Some buyers don’t care what happens in a stigmatized property “if it can get them a discount on price,” Beacher said.

About 43% of polled Americans said they would offer at least $50,000 below market value on a haunted house, according to the Real Estate Witch report.

In 2021, the LaBianca mansion, the home where Leno and Rosemary LaBianca were murdered by Charles Manson’s followers in 1969, sold for $1.875 million. The previous owner, Zak Bagans, a paranormal activity investigator, originally put the house on the market for $2.2 million, but later cut the price to $1.9 million.

“Different people interact with stigmatized properties in different ways,” Beacher said.

How a rare type of mortgage is landing homebuyers a 3% mortgage rate

In 2023, about 67% of would-be buyers said they would buy a supposedly haunted house if it met their wants, like having appealing features, the right location or a more affordable price, according to Zillow.

But buyers should know that “every property has a history,” said Connie Vavra, managing broker of RE/MAX, a real estate brokerage franchise, at Elgin, Illinois.

“We can’t erase the history that’s been done there … That doesn’t mean that you can’t have good energy in there and have [a] good experience living in that home.”

How to find out a home’s history

If you have questions or concerns about a property’s history, the first thing you should do is ask the real estate agent. In some states, real estate agents need to provide truthful information upon a buyer’s request, or at the very least, point you toward the right direction to find out.

Here are two ways to check, experts say:

1. Talk to neighbors and officials

Keep an eye out for the property’s neighbors, experts say. Besides the real estate agent, neighbors can give you first-hand experience of the area, as well as information about the previous homeowners.

You can also call the county manager where the property is located, said Theresa Payton, a former White House chief information officer who is now the CEO of cybersecurity firm Fortalice Solution.

Ask the county manager’s office about the property you’re considering and if there are any crime records associated with it, she said.

2. Follow the paper trail

An internet search can turn up details. If police responded to any activity at the house, the event will likely be reported in the newspaper and it would be public record, Payton said.

You can do an advanced search online through newspaper headlines and police reports, as “all that information is free,” she said.

Personal Finance

Here are steps you can take to avoid overspending next holiday season

Published

1 day ago

December 31, 2024

Business Finance News

Ezra Bailey | Stone | Getty Images

Opening presents during the holidays is of course a lot of fun. But for many, opening those credit card statements will be just the opposite.

Months before the holidays hit, consumers were already bracing for the anticipated costs.

More than half of 2024 holiday shoppers, or 55%, felt stress at the costs associated with the season, according to a survey conducted online in September by The Harris Poll on behalf of NerdWallet.

Still, 32% of consumers thought it was important to purchase holiday gifts and experiences to show their love for family and friends, despite the expenses, the survey found.

“The holidays are hyped 24/7 for weeks before the actual days,” said Carrie Rattle, a financial therapist in New York. “This builds a level of almost manic euphoria and gives us permission to ignore a spending plan, achieve instant gratification and worry about the aftershocks later.”

Those aftershocks are likely being felt right around now.

To that point, 10% of holiday shoppers this year were considering tapping their emergency savings for gifts, according to NerdWallet. Meanwhile, 9% said they’d prioritize their gift purchases over debt payments or other bills. (Some 2,000 adults ages 18 and older were polled.)

To avoid overspending during the holidays, people need to plan ahead and create a spending budget, experts say. There are steps you can take now to avoid a repeat next year.

Plan ahead and ‘bookend your shopping time’

It’s best to start thinking about big purchases, such as for the holidays, “when you are calm and rational,” Rattle said. That will likely be far in advance of when those events take place.

“Before the tide of emotional shopping overtakes you, know what you want to spend,” Rattle said.

This way, you can also take your time deciding what gifts you want to get people and to research the costs.

It can be a good idea to save throughout the year for the holidays, said Kristen Euretig, a certified financial planner and founder of Brooklyn Plans.

“You can simply set aside a monthly amount to a dedicated savings account and reserve it for holiday expenses,” Euretig said.

Starting early will also allow you to take advantage of different sales that pop up throughout the year, Euretig added.

Rattle recommends people make a list of the gifts they want to buy far in advance, and then space out their purchases to avoid breaking your budget.

“Buy once a week,” she said. “Bookend your shopping time by having an obligation before shopping, and right after your targeted completion time.”

“When you control your purchasing time you also control browsing,” Rattle added.

You can also be on the lookout for which of the gifts you bought people were actually put to use, she said.

“Reflecting on this helps you realistically separate what is truly valued by the receiver,” Rattle added.

Don’t miss these insights from CNBC PRO

Personal Finance

5 advisors offer important tips for managing your money in 2025

Published

1 day ago

December 31, 2024

Business Finance News

Personal finances are top of mind for many households as they get set to ring in the new year.

About 38% of Americans ranked financial stability as their No. 1 focus area for 2025, according to a recent Allianz Life survey.

CNBC reached out to certified financial planners on its Financial Advisor Council to list their top resolutions for households as they look ahead to the coming year.

Here’s the financial advice they offered.

Kamila Elliott, Co-founder and CEO of Collective Wealth Partners

Kamila Elliott, CFP, is co-founder and CEO of Collective Wealth Partners in Atlanta.

Kamila Elliott

Create and stick to your budget! Max out on retirement contributions and create one personal financial goal such as paying off credit cards or investing an additional $100 a month in an investment account.

Barry Glassman, Founder and president of Glassman Wealth Services

It starts and ends with knowing where the money is going. I encourage people to track their spending for a period of time, maybe going back to three months’ worth of credit card and Apple Pay payments. It’s incredible what behaviors will change once people just know the truth.

Marguerita Cheng, CEO of Blue Ocean Global Wealth

Courtesy Marguerita Cheng

I’m going to say estate planning. It’s important for everyone to address — even for an 18-year-old heading off to college in Fall 2025. I had my daughter complete a health care and financial power of attorney before I sent her off to college.

If people feel overwhelmed with the estate planning process, I remind people that it’s a process. Start with a financial and health care power of attorney.

You can then focus on beneficiary designations. Next, a will and trust, if the trust is appropriate for your situation. This process also helps individuals track down retirement plans from former employers. Estate planning is a wonderful opportunity to revisit life insurance as well.

Lee Baker, founder, owner and president of Claris Financial Advisors

1. It’s not a popular subject but take the time review all your insurance coverages:

Auto and home in particular have jumped significantly for many people. Don’t forget about disability and life insurance. As long as you can get up and earn a living, you can replace your car or rebuild your home. What happens if you can’t generate an income?

Why so many young adults are still living with their parents

2. Spend some time reviewing your tax strategies and retirement planning:

Required minimum distributions: Do you ‘need’ them? Would making Qualified Charitable Distributions improve your overall picture?
Tax loss harvesting: Here’s an opportunity to improve your overall portfolio performance.
Employee benefits: Are you fully taking advantage of a health savings account (if available) and retirement plan contributions?

3. Review your cash flow:

If you spent more than you should have over the holidays, now is a good time to make a plan to get rid of that financial hangover as well as making a plan to avoid it next year. Take a look at your personal interest rate environment. We have gotten a few rate cuts from the Federal Reserve so far. There may be more but either way take stock of your situation.

Cathy Curtis, founder and CEO of Curtis Financial Planning

1. Automate savings:

One of the best features of company retirement plans such as 401(k) plans and 403(b) plans is that the contribution amounts are automatically taken out of a person’s paycheck each month, and then the funds are automatically invested in a pre-selected selection of funds.

Since it’s important to save outside of retirement as well for other goals, setting up an automatic withdrawal from a checking account to a savings or investment account is a smart move. First step is to determine how much to save each money based on cash flow and then set up a monthly or quarterly transfer. Once it is set up, it is out of sight and out of mind and the savings will grow.

It starts and ends with knowing where the money is going … It’s incredible what behaviors will change once people just know the truth.

Barry Glassman

Founder and president of Glassman Wealth Services

2. Manage overspending:

In order to get a handle on overspending, the first step is to identify the spending weaknesses. It could be household furnishings, electronic equipment, clothing, travel, or jewelry, etc. Then, write down how much was spent in the problem category. A good way to find the numbers is to look at the year-end credit card statements. Then, write down a number that is 20-30% below the amount spent in 2024 and make that a new budget and target for 2025. Track spending each month on a spreadsheet or app to keep the spending goal top of mind.

3. Stay invested no matter the headline news:

If the end of 2024 is any indication, 2025 is likely to be a turbulent year in the stock market. With a new presidential administration coming in, global wars, inflation and uncertainty around the projection of interest rates, that is much to worry about. But decades of history show us that the market will go up over longer periods and the smartest move a long-term investor can make is to keep investing and stay invested.

Personal Finance

As ETF assets top $10 trillion for first time, here are trends to watch

Published

2 days ago

December 30, 2024

Business Finance News

Pedestrians walk in front of the New York Stock Exchange, decorated with a giant U.S. flag, in New York City, Nov. 6, 2024.

China News Service | China News Service | Getty Images

Assets in U.S. exchange-traded funds in November topped $10 trillion for the first time, according to the latest data from Cerulli Associates.

ETFs — funds that invest in stocks, bonds or other assets and trade on national stock exchanges — reached $156 billion in flows for November, surpassing previous monthly flow records.

The activity is “on par with elevated activity typically seen toward the end of the year,” Cerulli reported.

Research from Morningstar pointed to a “Trump bump” that helped U.S. funds — including both ETFs and mutual funds — take in $115 billion in November, the highest total since April 2021.

As 2024 comes to a close, these are a few of the ETF trends that dominated the year, based on the latest data.

S&P 500 among 2024 fund winners

Year to date, the S&P 500 index is up almost 24%, as of Monday.

The S&P 500 rally, buoyed by the Magnificent Seven stocks — Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms and Tesla — helped account for about half of the index’s gains for the year, according to data and analytics company VettaFi.

Four of the top 10 ETFs for 2024 by flows track the S&P 500 index, according to Cerulli.

The Vanguard 500 Index Fund ranks No. 1 for 2024 year-to-date inflows, according to Cerulli, followed by iShares Core S&P 500 ETF, iShares Bitcoin Trust, Invesco QQQ Trust, Vanguard Total Stock Market Index Fund, iShares Core US Aggregate Bond ETF, SPDR Portfolio S&P 500 ETF, Vanguard Total Bond Market Index Fund, Invesco S&P 500 Equal Weight ETF and Vanguard Growth Index Fund.

Malcolm Ethridge, a certified financial planner and founder and managing partner at Capital Area Planning Group, said he often uses S&P 500 ETFs in client portfolios because they allow for access to company names that would be in any large-cap growth strategy for significantly reduced costs.

While an actively managed fund may charge 50 or 75 basis points, a passive S&P 500 ETF may only charge 10 basis points, he said.

The S&P 500 index, which has had a record run, may be poised to continue to do well as the index rebalances to reflect current market leaders.

“I think this is a case where SPY [SPDR S&P 500 ETF Trust] probably outperforms the majority of fund managers in 2025,” Ethridge said.

S&P 500 could get close to 7,000 in the first half of next year, says Fundstrat's Tom Lee

Alternative ETFs see record growth

Meanwhile, alternative ETFs in November crossed $400 billion in net assets for the first time, according to Cerulli.

Moreover, the year-over-year asset growth rate for alternative ETFs — at 93% — was highest among all asset classes.

Most of the total alternative ETF market share — 80%, or around $325 billion — comprises digital assets, trading-leveraged equity and derivative income ETFs, according to Cerulli.

Financial advisors reported having just a 3.6% allocation to alternatives in 2024, though that is expected to increase, according to Cerulli. Within existing alternatives allocations, 14.4% is done through the use of ETFs, the firm found.

Crypto ETFs are ‘here to stay’

In January, bitcoin ETFs began trading on U.S. exchanges.

Now, spot bitcoin ETFs hold more digital currency than bitcoin founder Satoshi Nakamoto, VettaFi noted. Despite a “more lackluster” rollout for spot ethereum ETFs this year, crypto ETFs are “here to stay,” according to VettaFi.

The top five new ETFs by assets in 2024 are all bitcoin ETFs, according to Cerulli, based on data through November.

They include iShares Bitcoin Trust ETF at No. 1, followed by Fidelity Wise Origin Bitcoin ETF, ARK 21 Shares Bitcoin ETF, Bitwise Bitcoin ETF, and Grayscale Bitcoin Mini Trust ETF.