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After the tragic death of well known actor Heath Ledger, there has been some talk that the apartment which he rented in the trendy Soho district in New York City would now command a much higher premium on the rental market. In fact, according to the New York Post, it is already being quietly shown to prospective renters.

We wanted to get an expert opinion on the situation so we contacted top New York Appraiser Jonathan Miller who is Founder and CEO of Miller Samuel as well as the Executive Vice President and Director of Research at Radar Logic.

Q: So is there any truth to the rumor that when a celebrity dies in their home it becomes a landmark?

A: Thats the conventional wisdom, but I don’t think it does. In markets like New York or LA, where there is ample supply of celebrities, its simply part of the housing landscape. I think it could be more of a factor in markets that have very few celebrities, but even then, I think its a pretty thin argument.

From a marketing perspective, its helpful because it draws “eyeballs” to the listing through media coverage and name recognition. However, its been my experience that it more likely contributes to a shorter marketing time, but not a price premium. This is a generalization and there are always exceptions. I think that if such a premium exists, it would fade very quickly over time.

Q: With the Vacancy rate so low in Manhattan, will the unit Heath Ledger rented now command a premium?

A: No I don’t see it. You can look at this two ways. For those with morbid curiosity, they may want to be associated with a tragic event like this, but for just as many, they would not be comfortable with the idea. So the excitement of some is offset by the fewer number that would consider it as a place to live.

Q: How does his tragic death effect the building or adjacent neighbors property value or desirability?

A: I don’t see how it has any real impact at all. Again, there are already plenty of celebrities living in the immediate area.

Q: In your opinion, do the circumstances in which the celebrity died have any direct effect on the homes value? e.g. Accidental death, Natural Causes, Murder, Inside the home, Outside the home, etc…..

A: Thats an interesting point. I remember coming across a townhouse many years ago where a man murdered other family members and the property appeared to have a stigma associated with it when it was sold, but that stigma seemed to go away after it sold again. Perhaps if it was a celebrity, it would serve to offset the stigma somewhat so there was no impact on value.

In the case of John Lennon, before I moved to New York I had my first date with my wife when I was in college on the day he was shot so the event is on my mind every time I inspect a property in the Dakota. However, I never observed market evidence of its impact one way or the other (however, I didn’t arrive in NY until 5 years later).

Q: Have you or your firm ever been contacted to appraise the residence of a celebrity who has passed away?

A: Yes, all the time. You can’t help it here in New York with such a high density of celebrities. It also helps that we have (I believe) the highest attorney per capita in the country.

Q: On a lighter note, how about those Giants?

A: Its one of the main reasons the New York metro area real estate values have held relative to the rest of the country …ok, ok, so I am getting carried away here, but hey, local fans of Superbowl winners have a broad array of rights bestowed on them to say just about anything over the next year.

Thanks Jonathan!

Image Source: Adapted from Ninemsn (Heath Ledger as the Joker in the upcoming Batman Movie)
Note: Title inspired by a line in the famous T-Mobile commercial

Update: According to Mrs. Mogul, Heath Ledger’s apartment is apparently already rented.

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