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How To Avoid Buying A Haunted Home

ByTMN Editor Reading Time: 5 minutes

By ERIN FLYNN JAY

In most states, homeowners and realtors don’t have to disclose information about a house’s history, including if someone died there, even if it was a murder.

This means a house could have a bad reputation, meaning it is a stigmatized property, and it could be sold without the buyer ever knowing.

These events can lower the value of a house by up to 25%, and it can take twice as long to sell compared to similar homes.

“Imagine buying a house and only finding out later that something tragic happened there,” said Roy Condrey, CEO/President of Simply Put Solutions, Inc. and www.DiedinHouse.com. “Wouldn’t you rather know before making such a big decision?”

It’s hard to analyze the market for these stigmatized properties since the information isn’t required to be shared.

“Houses tied to well-known tragedies often lose value, but over time, people may forget, and the property could regain value,” said Condrey. “Unfortunately, buyers sometimes find out after they’ve already bought the house, and at that point, they either don’t care, or they don’t have the legal ability to back out of the deal. Most just don’t have the energy or the resources to fight it in court.”

Condrey said DiedInHouse.com aims to fill this gap in the real estate market. While no law requires this information to be disclosed, many people would want to know, and that’s why they’re in business.

“Without spending any money on marketing, our customer base keeps growing,” said Condrey. “We’ve learned a lot about stigmatized properties, especially those involving deaths, and we’ve worked hard to improve and expand our services.”

You might not believe in ghosts or mind living in a house where someone died, but what if it was a tragic death like a murder or suicide? What if a body had decomposed into the floor?

“The house could become a local attraction, with people driving by and asking questions,” said Condrey. “Even if none of that bothers you, wouldn’t you want to use that information to try to get a lower price? Wouldn’t you want all the facts before making such a big decision?”

People who say they don’t care about a house’s history often change their minds when they find out specific details.

“Whether it’s because of bad vibes, feng shui, or worries about resale value, people prefer to know,” said Condrey. “And this information can help them negotiate a better deal, avoid future problems, or simply make a more informed decision.”

Due to increased demand, DiedInHouse.com expanded its team with creative software engineers who are redesigning their website and developing a tool that goes beyond identifying deaths.

Condrey said the tool will open the door for new products, like subscription services and APIs for industries such as paranormal research, real estate, and home inspections. These new services will be available soon, and they’re also planning to expand internationally.

DiedInHouse.com still faces challenges, especially with misconceptions on social media.

“As the first company to focus on sharing this kind of information, we understand that it can be seen as odd,” said Condrey. “But our goal isn’t to say that dying in a home is always bad. In fact, many people want to die peacefully in their own home. We just believe everyone has the right to make an informed choice, whether they decide to buy or rent a property with a history.”

Some buyers don’t care if a house is haunted.

Mike Roberts, Co-founder of City Creek Mortgage, said there is a growing market for “haunted homes” which are more popular with the younger generations.

“Right now, millennials and Gen Z are genuinely struggling to afford homes in this wild market,” he said. “If a haunted house is the only way they can get into the housing game, they’re probably going to take it.” 

Also, they’re drawn to the novelty of these houses.

“We’re talking about generations who grew up on a steady diet of horror movies, creepy YouTube videos, and haunted house attractions,” said Roberts. “They’re used to the shock value and even find it exciting.” 

The biggest pro is the lower price tag because haunted houses are stigmatized properties, which can be ​​a bit of a double-edged sword.

“They’ve basically got a reputation that makes some buyers shy away,” said Roberts. “And so, they sell for about 10% to 25% less than similar homes without that tainted backstory.” 

Most buyers would anticipate a lower price for a haunted home. So, if you’re negotiating, you might have some leverage there. 

The con, said Roberts, is that also means that if you resell the same stigmatized property, you’re going to have a hard time.

“Yes, the interest around these properties is slowly growing, but buyers aren’t prepared to pay more,” said Roberts. “The whole appeal is that they cost less and you need to be prepared for that outcome. It’s going to be harder to recoup your investment if you decide to sell later.” 

Getting insurance for a haunted house is also tricky.

“Some companies still view these properties as higher risk due to their reputations and the potential for liability claims,” said Roberts. “You may have to pay higher premiums or even have difficulty finding coverage at all. Check with your insurance provider to understand the implications.”

Want to feel scared? Here’s Airbnb’s list of the spookiest homes across the US: