Would You Buy a Haunted House?

Picture this: you’ve found your dream home. Perfect location and a great price. There’s just one small detail the real estate agent mentioned in passing: the previous owners claimed it was haunted. Would that be a deal-breaker for you?

For some homebuyers, strange noises and unexplained cold spots are enough to send them running for the hills. For others, a ghost roommate might be worth the discount that often accompanies properties with a supernatural reputation. In real estate, homes with dark histories or paranormal claims fall under a specific category: stigmatized properties.

What are Stigmatized Properties?

A stigmatized property is a home or building that has been psychologically impacted by an event or perception that occurred there. These properties fall into several categories:

• Psychologically stigmatized properties: These include homes where murders or violent crimes took place.
• Paranormal stigmas: Properties where paranormal activity has been reported or that have developed reputations for being haunted fall into this category.
• Public stigmas: Sometimes, a property becomes infamous because a notorious person lived there. Think serial killers’ homes or residences of infamous cult leaders.
• Criminal stigmas: Properties previously used for illegal activities like drug manufacturing or other criminal enterprises.

The stigma attached to these properties often outlives the events that created it. For instance, homes where high-profile crimes occurred can remain stigmatized for decades, even after complete renovation.

From a financial perspective, these psychological stigmas can have a significant impact on property values. According to socio-economist Randell Bell, stigmatized properties can sell for anywhere from 15 to 20 percent below market value, depending on the severity of the stigma and how long it has been since the stigmatizing event occurred.

Famous Haunted Properties in America

America has no shortage of properties with paranormal reputations that continue to fascinate the public.

Is the Amityville House still standing? Yes, the infamous Amityville house is still standing, but it looks quite different today than it did during its notorious heyday. The distinctive quarter-moon windows that gave the house its sinister “eyes” have been replaced, and the address was changed in an attempt to discourage tourists. The house gained infamy after Ronald DeFeo Jr. murdered six family members there in 1974. A year later, the Lutz family moved in, only to flee 28 days later, claiming horrifying paranormal experiences.

Is the Biltmore House haunted? The Biltmore House in Asheville, North Carolina, has its share of ghost stories. Visitors and staff have reported seeing the ghost of George Vanderbilt in the library, where he is said to continue looking after his prized book collection. Others claim to have heard his wife Edith’s voice calling out to servants.

Other Haunted Houses

Other Notable Haunted Houses include:

• The Winchester Mystery House in San Jose, California, features bizarre architectural elements like staircases leading to nowhere and doors opening to walls. Sarah Winchester, the widow of the rifle manufacturer, supposedly built continuously for 38 years to appease the spirits of those killed by Winchester rifles.
• The LaLaurie Mansion in New Orleans gained notoriety after horrific discoveries of tortured slaves were made following a fire in 1834. Visitors report screams and apparitions at this French Quarter property.
• The Villisca Axe Murder House in Iowa, site of the unsolved 1912 murder of eight people, now offers overnight stays for brave visitors. Many guests report children’s voices and moving objects.

Tips When Buying or Selling Haunted Houses

For Buyers

• Research disclosure laws in your state. In some states, sellers must disclose deaths, crimes, or even reported paranormal activity. In others, sellers can remain silent about non-physical defects.
• Haunted houses or properties with dark histories typically sell for less than market value, and sometimes significantly less. If you’re comfortable with the property’s history, consider taking advantage of the discount.
• Consider resale value. While you may be fine with buying a stigmatized property, remember that when it’s time to sell, you’ll face the same challenges the current seller is experiencing.
• Speak with neighbors. They can provide context about past events, the property’s reputation in the community, and whether curious strangers frequently visit the area.
• Before attributing odd occurrences to ghosts, rule out structural or mechanical issues.
• When viewing a potentially haunted property, pay attention to how you feel. If you’re uncomfortable during a daytime showing, consider how you might feel living there alone at night. No discount is worth your peace of mind.

For Sellers

• Consult with a real estate lawyer familiar with your state’s disclosure laws regarding stigmatized properties. Failing to disclose required information could lead to lawsuits after the sale closes.
• Be realistic about your property’s value. If your home has a haunted reputation or troubled history, pricing it at market value will likely result in a long, unsuccessful listing period.
• Find the right real estate agent. Look for someone with a track record of successfully selling homes with challenges.
• Consider your marketing approach. Depending on the nature of the stigma, you might either downplay the property’s history or lean into it.
• Potential buyers may request visits at night or permission to conduct paranormal investigations. Decide in advance how accommodating you’re willing to be with these requests.

How to Sell a Haunted House

Selling a property with a spooky reputation presents unique challenges beyond those of typical real estate transactions:

1. Work with a real estate lawyer who specializes in disclosure requirements for stigmatized properties to understand exactly what you must reveal.
2. Look for real estate agents who have experience with stigmatized properties or who market themselves as specialists in unique homes.
3. Price strategically. Get an accurate appraisal from someone who understands the impact of stigma.
4. Consider your marketing angle. When selling a haunted house, you have two primary approaches:
   1. Embrace the haunting. This approach works best for homes with documented paranormal activity or historical significance.
   2. Emphasize the property’s positive attributes while addressing the stigma matter-of-factly when necessary.
5. Be accommodating to unusual requests, but set clear boundaries to protect your privacy and property.

Most importantly, remain patient. The right buyer, someone who either doesn’t mind the history or is drawn to it, will eventually come along, but finding them may take time.

Ready to explore haunted houses near me, or need help selling a home with a complicated history? Contact your local REMAX office to connect with an agent who can guide you through the complexities of stigmatized property transactions.