Don & Nadia-
I think your answers are in line with what I've heard myself locally. Thanks for your input.
It's good to know that at least in Ohio there is reference in the contracts that directs buyers to consider that factor. Thanks for the answer.
The reason I initially asked the question is that while my wife & I were recently shopping for a home our realtor showed us a property that was on the market for 9+ months. We looked at it and other than being about $5,000 above the comps... looked pretty good. I began researching the neighborhood etc & found that there was an adult (30+ yrs) convicted of Aggravated Criminal Sexual abuse (victim was age 13-16) living in the house right next door with his parents. When I brought this up with my realtor, her response was that it wouldn't affect the property value (nor any bids we would consider putting on it).
As it is the home owners wound-up taking the home off the market after 10 months. Local realtor still maintains that it was "priced OK"..(close enough for negotiations to start).
Thanks for all the responses!! It's interesting to see just how much they vary.