The sad thing is, you home value just dropped by 1/3. You must tell any potential buyer of the neighbors, because it is material to the homes value.
I don't think there is much you can do about it.
Well, actually, there is lots that COULD be done about it. Whether something SHOULD or WILL be done about it is a different story.
Seems a little bass-ackward to me. I have to inform others, but nobody bothered to inform me or any of the other homeowners in the neighborhood. Interesting thing...the house is located directly across the street from the home of the city's mayor.
I'm not sure that's the case - it may be in Michigan, but in Washington, you are not responsible for telling potential buyers about neighborhood issues. Researching the neighborhood is something the buyer is expected to do. You are only responsible for telling them things directly related to your personal structure. (At least according to a realtor friend of mine.)
Did it drop because the whole wide world now knows that a registered sex offender lives in OldBlond(e)Babe's neighborhood? Isn't that what Megan's Law is all about? So home buyers know what's "safe" and what isn't?
(OldBlondBabe -- in English "Blonds" are masculine, "Blondes" are feminine.)
I would think that a loss in value of 30+% could be pressed with the assessor to result in a reduction in property taxes.
We obtained property tax relief when a car accident resulted in polluted groundwater (MTBE), even though we were provided filtration equipment to mitigate the pollution.
You only have to tell if you are aware of it. If you are unaware, I'm not sure you can be held liable.
Caveat emptor. The buyer is responsible for researching the area, not the seller. And, the presence of such a home may not even be referenced on an official appraisal. At least that is the law in NYS. And since appraisal practices are pretty much the same in all states i'd suspect that it is also true in Michigan.