It will not have as much impact of price as it will on salability. There are many who do not care if a sexual offender lives close by, and there are many more that will never check the offender database. On the other hand, some will not buy for obvious reasons. It effectively limits your pool of buyers, but may not affect your price.
As for disclosing that there is an offender nearby, you have to be very careful â€“ improper disclosure can be a form of slander and could place you in a precarious legal position. The purchase agreement clearly states (Section 6. D.) that a buyer has a right to check the local Meganâ€™s Law Database. It reads as follows:
â€œMegan's Law Database Disclosure: The sale is not exempt from the requirement that residential sales contracts contain the following notice regarding the availability of information about registered sex offenders: "Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at http://www.meganslaw.ca.gov.
Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides." (Neither Seller nor Brokers are required to check this website. If Buyer wants further information, Broker recommends that Buyer obtain information from this website during Buyer's inspection contingency period. Brokers do not have expertise in this area.)â€
This paragraph in and of itself is considered by many to be adequate disclosure.
If you have questions about the level of disclosure you must legally provide, contact a local real estate attorney (your broker can probably provide you access to the attorney they have on retainer) to verify your obligations.