Death/drug use on a property

[Long H.]

Potentially morbid albeit serious question(s), 

How does death of any kind (ie: illness, homicide, etc.) on a property affect it’s value? I understand that some states have or don’t have laws that require disclosure of death on a property.

Additionally, if a property was once the site of illicit drug use (ie: a meth house/lab) but is a good deal would it be worth the rehab?  

Lastly if the numbers work but there is a death/ drug use on the property… would you still buy it?

[Edward Stephens]

I would avoid.  Some cultures are VERY disturbed by any death that has occurred in the home. I have had many buyer clients turn down many perfectly fine homes because of this one fact.  The question is typically raised if the home is being sold in the name of a trust or if the property is being sold by several owners with different last names and the property is extremely dated with dated furniture (like an elderly person has lived there). 

When it comes to the drug houses, I would talk to an insurance provider about this.  You might find out the home is uninsurable or has a staggeringly high deductible.  Even after the rehab you might try to sell it to buyers who struggle to find affordable insurance on the home and then can't close or can't get the property sold at the price you want.  Insurance companies probably don't have as much of a forgiving attitude as some uninformed first time home buyer.