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What does this mean? According to Haunt spot.com

"Psychologically impacted doesn't just mean haunted. It is a real estate term used to describe any house that will be considered a hard sale due to a death, murder, drug lab, suicide, or even if the person who lived there had a long history of violent mental illness. People are superstitious, and these houses are 50% more likely to stay on the market and sell for a reduced price than other real estate; even if no unexplained phenomenon has ever been reported."

In other words if a murder, or violent, or notorious act took place on the property it might be stigmatized and may be hard to find a buyer. Not all states require for a brokerage to disclose the details upfront about the listing being psychologically impacted, or if a murder took place in it. In the state of Oklahoma on the RPD (residential property disclosure) will ask if the seller has any knowledge of manufacturing of meth, but will not ask if any violent acts have taken place or if the previous owner had aides or if a rape took place ect. The reason being is that manufacturing of most any drugs can leave behind a harmful and deadly residue that can cause humans and animals to become very ill. Even if you buy a property from an auction and sell it with no knowledge of that the law can still come back and penalize you for not doing due diligence in determining if the home was in habitable condition for human dwelling.

If for instance a violent or notorious crime took place like murder or rape then the seller and broker need only disclose the fact that these events took place upon written request from the buyer or the buyers Realtor.

Some people might not have a problem with the fact that a suicide or murder took place in a home however there a good amount of people that will not and would not want to dwell in that home due to the prior events that took place. There are many precedents where a court of law has forced the seller to actually purchase the house back from the buyer because they failed to disclose these items ahead of time. It is always good to have your Realtor check local real estate laws regarding psychologically impacted properties. However if you purchase a home from a for sale by owner your pretty much on your own. The home owner selling the property is not required to really do anything since he is not using a local real estate commission state forms for contract. Very little protection can be offered in these transactions  so be very careful and always consult a Realtor when possible, you'll be glad you did.