Sex offenders as neighbors a realty factor

A close review of the Virginia Study reveals it is not the presence of the former offender that causes home values to be reduced, it is the Realtors in the way they value homes w/former offender nearby. Assessor's value is never changed. It appears Realtor's have found a way -using fear like politicians do- to get sellers to lower the selling price of homes; such is actually revealed in the study in question. Also, notice in the article below, the Realtor uses a iPhone App to show sellers and maybe buyers as well, where former offenders live in proximity to the home for sale; they are causing the fear problem. The studies show the result of the actions of the realtor actions.

8-11-2010 Virginia:

Richmond, Va. -- What's more important than a brick exterior, a walk-in closet or a fireplace if you're in the market to buy a house in rural Virginia?

The assurance that the house is not located close to a registered sex offender, according to a study by three Longwood University professors.

Being located within one-tenth of a mile of a sex offender reduces a home's value by nearly 9 percent, according to the study's findings. And the same house takes as much as 10 percent longer to sell.

"We expected that homes would be negatively impacted, but the magnitude was striking," said Scott Wentland, visiting assistant professor of economics at Longwood.

Wentland was joined in the study by Ray Brastow, associate professor of economics, and Bennie D. Waller, chairman of the department of accounting, economics, finance and real estate.

They studied rural areas based on information from the Multiple Listing Service in Lynchburg for their report on the effects of the federal Sexual Offender Act, known as Megan's Law.

Since 1994, people convicted of sex crimes have been required to notify local law enforcement about their residence and any change of address. That information has become publicly available, allowing anyone to see whether an offender lives nearby.

Lacy Williams, a Realtor with Joyner Fine Properties in Richmond, said she has an application on her smartphone that allows her to show the list of offenders to prospective clients.

"There are sex offenders almost everywhere," she said. "I have been in situations where young, first-time buyers like a house and parents who live elsewhere look at the list and tell the children not to buy the house."

The study shows that people will pay an average $14,826 more for a house if it's not located near a registered sex offender.

And they will sacrifice as much as 295 square feet in a house if they can be assured of not living near a registered offender.

The study looked at distances from 0.1 mile to 1 mile. A house located 1 mile from an offender saw a 4.5 percent drop in price compared with comparable houses.

Similar studies in the Charlotte, N.C., and Tampa, Fla., areas have shown less dramatic results -- about half as many as the Longwood report. However, those studies involved metropolitan areas, not rural.

The concept of a neighborhood in rural areas may encompass larger areas than in more densely populated areas, explaining the different results, Brastow said.

Brastow said the findings are important for sellers and buyers trying to determine fair market values. ..Source.. Carol Hazard | TIMES-DISPATCH STAFF WRITER