Selling a Haunted House: Stigmatized Property Disclosure

Many states require full disclosure of traumatic events, violent crimes and any other event that may stigmatize your property before selling. Although your state may not require you to disclose a haunting, failing to do so may come back to haunt you. The buyer may be able to take you to court and nullify the contract, if you failed to disclose the haunted history of your home.

Disclosure
So, does that mean if you have seen the ghost of Grandma or heard Uncle Fred's voice you are required to reveal that to a realtor and the subsequent buyer? Probably not. But if your properly is known for its haunted history, if several tenants have moved out because of suspected paranormal activity or the activity is otherwise known to the community-you'd better disclose it, whether your state requires it or not.

Buyer Beware
Even in states that adhere to the "buyer beware" policy, you could face difficulties if there is evidence that you knew or should have known of your home's haunted history. Not only may the value of your home decrease, it may become unsellable due to his shaded history.

Adding Character and Charm or Evoking Fear
For some buyers the thought of friendly ghost sharing their home simply adds charm and character to the property-especially if the ghost stories involve the spirits of ancestors who occupied the home. These historical homes often evoke a desire to understand the past. But, when the stories turn threatening or violent, home buyers are likely to see the house as undesirable. Connections to brutal slayings, suicide and other violent crimes typically deter buyers.

Opening a New Market
However, selling a haunted home--particularly if you have anecdotal evidence from past tenants and community members or have the report from a paranormal investigation-may open a new market you had not thought about. Those who are intrigued by the paranormal may actually be willing to pay more to buy your haunted house. Buying a house with a history of ghosts appeals to their sense of adventure. Whether they purchase it as home--or simply to claim they own a haunted house-these people seek out properties with a history.

Seller Beware
Before you take the step to reveal or conceal evidence of the paranormal in your home, consider the consequences. Although you may sell your home if you keep mum-it may not be permanent and you may find yourself in court forced to repay the buyer.

SOURCES:

Bankrate.com. Want to Buy a Haunted House?
Buy Sell PDX. Buying and Selling a Haunted House
National Association of Realtors. Field Guide to Dealing with Stigmatized Property