How to Sell a Haunted House Like Any Other Home on the Market

Check your state’s disclosure requirements, and consult an attorney on any gray areas

Real estate disclosure laws, which set rules for what you have to tell buyers about a home before they follow through on the deal, are a mixed bag from state to state. But most states, in some shape or form, require sellers and their agents to disclose any “material defects” about a home upfront in writing.

According to the National Association of Certified Home Inspectors, material defects are those that negatively impact a home’s value or could pose an unreasonable risk to the buyers’ safety. Examples include a decayed exterior that exposes a home to the elements or a shoddy roof job that lets water seep in through the cracks.

Then, there are what’s called “material facts” about a home that might influence buyers’ decision on whether to purchase the house or how much they’d pay for it, such as the flood in the basement that happened three years ago.

Disclosure laws get murkier when it comes to telling buyers about facts that only have a “psychological impact” on the home — such as a murder, suicide, or rumored hauntings—but still may be considered “material” to a buyer’s decision.

We went to the real estate section of state government websites to dig up each individual state’s disclosure requirements around selling a stigmatized property so you can see how the laws vary.

Disclosure requirements differ state by state

The majority of states do not require sellers or their agents to disclose occurrences like homicides, felonies, suicides, or natural deaths that occurred on a property or any rumored paranormal activity associated with it.

Some states even say a seller or agent cannot be held legally liable for failing to disclose such incidents or information.

In states that don’t require disclosure, an agent’s disclosure of sensitive information to the buyers without the seller’s permission may be considered a breach of ethics.

California has a unique law that requires that any death, even natural deaths, that occurred in the property within the last three years be disclosed.

On the other hand, Alabama and North Dakota take a “caveat emptor” or buyer beware approach. This means the buyer is responsible for uncovering any stigmas associated with a property before they sign on the dotted line.

However, many state laws also say that if a buyer asks point blank about any rumors or history of the home, the seller or listing agent can’t lie.

See where your state lands on psychological impact/stigmatized property disclosure laws by using the map below.

Keep in mind that even if your state doesn’t require disclosure, it’s not so clear-cut. Many states also require that you disclose “adverse material facts” that could impact a property’s value, further muddying the waters.

Does a property’s history as the site of a violent crime constitute a material fact? You could argue it one way or another. It’s a gray area open to interpretation, especially when it comes to deaths and rumored hauntings.

Your agent should be familiar with your state’s disclosure requirements and statutes. But when in doubt, always consult a real estate attorney for advice on whether you should disclose something about your property’s history to cover all your bases and navigate any gray areas with care.

Real estate disclosures of psychologically impacted or stigmatized properties by State

Different states have specific guidelines for disclosing information about properties with a history of suicide, homicide, or paranormal activity. While many don’t require sellers to disclose these details, it’s essential to know your state’s rules. Click the map below to find out what your state mandates regarding these disclosures.

Alabama

Alabama follows the “Caveat Emptor” Rule, aka buyer beware. This means buyers are responsible for inspecting the property before making a purchase. The seller and their agents are not obligated to reveal any defects unless specifically asked, except for issues that could pose health or safety risks to the buyers.

 Alaska

As stated in Alaska Statute 08.88.615, the seller or the agent must disclose any murder or suicide that happened within one year before the date the property is first shown to the buyer.

 Arizona

Arizona Statute 32-2156 protects Arizona sellers and real estate professionals from being held liable for failing to disclose that a property was the site of a “natural death, suicide or homicide or any other crime classified as a felony.” However, a court ruled in 2014 that the law does not protect against affirmative misrepresentations of facts about a property. In other words, although sellers may refuse to disclose, they shouldn’t lie about their reasons for selling a property.

Arkansas

According to Arkansas Code 17-10-101, no cause of action can arise against an owner or real estate agent for failing to disclose a property’s history of psychological impact, such as a homicide, suicide, or felony that occurred onsite.

California

Per California Civil Code 1710.2, owners and agents must disclose deaths (and the manner of the death) that occurred in the home within the last three years, but any deaths that occurred before that do not require disclosure. The code also states that owners and agents are not “immunized” from “making an intentional misrepresentation in response to a direct inquiry” from a buyer.

Colorado

Facts or suspicions regarding circumstances that could psychologically impact or stigmatize property are not material facts subject to disclosure, and no cause of action can be brought against a real estate agent or broker for failing to disclose such a circumstance, according to Colorado Revised Statute § 38-35.5-101.

Connecticut

Connecticut SB 481 prohibits lawsuits against owners and agents for failing to disclose “non-material facts” such as a death or felony on the property.

Delaware

Per Delaware Code section 2927, no cause of action can come against owners or real estate professionals for failing to disclose a property’s “psychological impacts.” If a buyer requests information in writing (except for history of diseases), the owner or agent must answer truthfully to the best of their knowledge.

Florida

According to Florida Statute 689.25, “the fact that a property was, or was at any time suspected to have been, the site of a homicide, suicide, or death is not a material fact that must be disclosed in a real estate transaction,” and owners and agents are protected from legal action for failing to disclose.

Georgia

Georgia Code 44-1-16 protects owners, brokers, and agents from any legal action against them for failing to disclose fact or suspicion that the property was the site of a homicide, felony, suicide, or death by accidental or natural causes. However, all parties must answer truthfully to specific buyer inquiries.

Hawaii

The fact that a property was the “site of an act or occurrence that had no effect on the physical structure” may be excluded from the disclosure statement. This information “shall not be deemed a material fact,” per Hawaii Revised Statute 508-D8.

Idaho

According to Idaho Code section 55-2801, no action can be taken against an owner or real estate professional for failing to disclose a property’s psychological impact history. A buyer may request in writing if the property is “psychologically impacted.” The agent can then report any findings to the buyer with the owner’s consent. If the owner refuses to disclose, the agent must relay the non-disclosure message to the buyer.

Illinois

Per the Illinois Real Estate License Act, Section 15-20 and the Illinois Association of Realtors, a real estate professional cannot be held liable for failure to disclose that a property was the “site of an act or occurrence that had no effect on the physical condition of the property.”

 Indiana

According to Indiana Code 32-21-6-6, an owner or agent is not required to disclose “any details concerning the psychologically affected nature” of the house. However, an owner or agent may not intentionally misrepresent a fact concerning a psychologically affected property in response to a direct inquiry from a buyer.

Iowa

There’s no statutory law in Iowa that explicitly requires owners or agents to disclose upfront the history of a psychologically impacted property or its associated stigmas, such as a death, murder, felony, paranormal activity, or suicide that occurred on the property.

 Kansas

There’s no statutory law in Kansas that explicitly requires agents or sellers to disclose upfront the history of a psychologically impacted property or its associated stigmas, such as a death, murder, felony, paranormal activity, or suicide that occurred on the property.

Kentucky

Per Kentucky Revised Statute 324.162 established in 2003, real estate agents are not required to disclose upfront any stigmas about a home, such as a murder, suicide, or violent crime that occurred on the property, but must answer any direct inquiries truthfully.

Louisiana

As indicated in Louisiana Revised Statute 37:1468, the fact or suspicion that a property was the site of a homicide, or other felony, or a suicide is not a material fact and therefore isn’t required to be disclosed in a real estate transaction.

Maine

Sellers will find the required disclosures in Maine Revised Statute 173 pertaining to the property condition. As for psychological impact, agents or sellers are not mandated by state law to disclose upfront the associated stigmas, such as a death, murder, felony, paranormal activity, or suicide that occurred on the property.

 Maryland

According to Maryland Statute Section 17-322.1, a homicide, suicide, accidental death, natural death, or felony that occurred on the property are not a material fact relating to the property for sale or lease. Thus, agents may not be liable for failure to disclose such.

Massachusetts

As stated in Massachusetts Chapter 93, Section 114, agents or sellers are not required to disclose death, homicide, or suicide. An alleged parapsychological or supernatural phenomenon on site is not deemed as material fact by state law.

 Michigan

No state law explicitly requires agents or sellers to disclose upfront the history of a psychologically impacted property or its associated stigmas, such as a death, murder, felony, paranormal activity, or suicide that occurred on the property.

 Minnesota

Minnesota Statute 513.55 “does not create the duty to disclose” if a property was the site “of a suicide, accidental death, natural death, or perceived paranormal activity.”

 Mississippi

According to Mississippi Code 89-1-527, the site of natural death, suicide, homicide, or felony crime (except for illegal activity that affects the property’s physical condition) isn’t a material fact that should be disclosed in a real estate transaction.

Missouri

Missouri Statute 442.600 law protects agents from any action being brought against them for failure to disclose a property’s history of psychological impact, such as whether it was the site of a homicide, other felony, or suicide.

 Montana

Per code 37-51-102(b), Montana law does not consider the fact that a property was the site of a suicide or felony to be “material” and therefore does not require disclosure.

Nebraska

No state law explicitly requires agents or sellers to disclose upfront the history of a psychologically impacted property or its associated stigmas, such as a death, murder, felony, paranormal activity, or suicide that occurred on the property.

 Nevada

Per Nevada Revised Statutes Code 40.770(a) a “homicide, suicide or death by any other cause, except a death that results from a condition of the property” is not considered material to the transaction.

New Hampshire

As indicated in New Hampshire Statute 447:4-e, agents and sellers aren’t required to disclose information to a buyer that a property “was a site of a homicide, other felony, or a suicide, unless the buyer requests such information.”

 New Jersey

According to New Jersey Admin Code 11:5-6.4, real estate agents are not required to disclose information about “psychological impairments” including but not limited to a murder or suicide that occurred on the property, or rumors of the property being haunted. However, there is a duty to disclose such incidents truthfully when a buyer makes a specific inquiry. Per Petrosino v. Ventrice, a “psychological impairment” may be so intertwined with the physical condition of the property that it must be disclosed.

New Mexico

New Mexico Statute 47-13-2 states that real estate agents and sellers will not be held liable for failure to disclose that a property was the site of a natural death, homicide, suicide, assault, sexual assault, or any other crime punishable as a felony.

New York

According to the New York Consolidated Law Section 443-A, real estate agents are not required to disclose death by natural or accidental causes, homicide, suicide, or any type of felony that occurred on a property. A buyer may submit a written inquiry for such information. The seller may choose whether or not to respond.

 North Carolina

Death, illness, or conviction of certain crimes are not considered a “material fact,” per North Carolina Statute 39-50.

 North Dakota

This state follows the caveat emptor or “buyer beware” principle. If a buyer makes a specific inquiry about the home’s psychological impact history (such as a felony, murder, or suicide), the agent should pass along only what the owner tells them.

Ohio

There’s no state law explicitly requiring the disclosure of a property’s psychological impact history.

Oklahoma

Oklahoma Statute 59-858-513 protects agents and sellers from legal liability caused by not disclosing that a property was psychologically impacted (was the site of a suicide, homicide, or other felony). However, a buyer can request for such information in writing, and the seller’s agent can provide it with the seller’s consent. The seller can choose whether or not to respond to the request.

Oregon

Per statute 93.275, the fact or suspicion that a property was the site of a “death by violent crime, by suicide or by any other manner” or “any other act or occurrence that does not adversely affect the physical condition of or title to real property” is not considered “material.”

Pennsylvania

Neither statutory nor common law requires owners and real estate agents in Pennsylvania to disclose that the property was the site of a murder or suicide. Moreover, psychological damage is not considered a “material defect.” See: Milliken v. Janoco (2013).

Rhode Island

The fact or suspicion that a property is “psychologically impacted” as the site of a homicide (or other felony) or suicide is not a material fact that requires disclosure, per Rhode Island statute 5-20-.8-6.

South Carolina

An owner in South Carolina is not required to and cannot be held liable for failing to disclose the fact or suspicion that a property may be or is “psychologically impacted,” including deaths onsite and the manner of the death, per South Carolina Code of Laws 27-50-90.

South Dakota

The disclosure statement requires the owner to disclose human death by homicide or suicide onsite, per Statute 43-4-44.

 Tennessee

No course of action can be taken against an owner or real estate professional for failing to disclose a homicide, felony, or suicide that occurred onsite, per Statute 66-5-207.

Texas

A seller or agent has no duty to disclose “death by natural causes, suicide, or accident unrelated to the condition of the property,” per Texas Property Code 5.008.

Utah

An owner is not required to disclose that their property is “stigmatized” as the site or suspected site of a homicide, felony, or suicide, per Utah Code 57-1-37 and 57-1-1.

Vermont

There’s no explicit requirement to disclose the psychological impact history of a property in statutory law or the real estate disclosure form. However, according to the Vermont Real Estate Commission, “facts a licensee reasonably believes may directly impact the future use or value of the property” must be disclosed as material facts.

 Virginia

An owner or real estate agent cannot be held liable for failing to disclose an onsite homicide, suicide, felony, or any act that did not affect the physical structure of the property, according to Virginia Code section 55-713.

Washington

Washington state has no statutory law that requires owners or real estate agents to disclose deaths or murders that occurred on a property.

 West Virginia

West Virginia has no statutory law that requires owners or real estate agents to disclose deaths or murders that occurred on a property.

 Wisconsin

Wisconsin does not require owners or real estate agents to disclose that a property was “the site of a specific act or occurrence if the act or occurrence had no effect on the physical condition of the property or any structures located on the property,” per Statute 452.23. However, the state disclosure form requires owners to answer the question, “Are you aware of one or more burial sites on the property?”

 Wyoming

There’s no explicit requirement to disclose the psychological impact history of a property in statutory law or disclosure statement. However, according to Wyoming’s Property Condition Disclosure Act, “a condition, malfunction or problem that would have a materially adverse effect on the monetary value of the property” must be disclosed as defects.

Washington, D.C.

Section 2708.13, which outlines the Real Property Seller’s Disclosure Statement, makes no mention of the need to disclose a property’s stigmas or whether it’s been psychologically impacted by a death or crime onsite.

Err on the side of disclosure, experts advise

So now you know where your state stands. But in any case, Sanborn and real estate agents across the country advise taking a transparent, upfront approach in the sale of any stigmatized property to avoid opening the door to legal disputes down the line.

“Some people won’t buy a house that has had a death in it,” says Sanborn. “No matter what the disclosures are, I think something like that has to be disclosed.”

For one, there are few secrets in today’s internet age. DiedinHouse.com even lets you find out if anyone died at any valid U.S. address for only $14.99. That’s not to mention, according to Sanborn, the neighbors who will come by after escrow and say, “Oh my god, did you hear about the murder in the house?” sending the buyer into a litigious flurry if they didn’t know.

And there is a right way and a wrong way to disclose these types of things. “This [Los Feliz] is not my only murder house by the way,” said Sanborn, who specializes in estates and trusts. “We don’t put a sign out ‘murder took place here,’” she explains.

You also don’t need to advertise the history in the listing description, but the listing agent may put a note such as “call listing agent for disclosures” in the multiple listing service private remarks (only visible to agents, not the public).

Then, the buyer’s agent relays the information to their buyer clients. If the buyer makes an offer, the listing agent puts the disclosure in writing in the counteroffer to have a record for the buyers to sign off on.

Christopher Ray, one of Jacksonville, Florida’s top-selling real estate agents, makes a lot of disclosures about flood zones in his hurricane-prone area, but far fewer when it comes to deaths on the property.

He offers a different perspective: “You don’t really disclose it unless someone asks you,” he says about death occurrences on properties for sale in his state.

“It’s not something that you have to volunteer. If someone asks if there’s a death on the property, then you disclose. But it’s not something that I would write on the MLS— ‘5 people have died in this home.’”

Take another one of Sanborn’s listings where a young man who had depression committed suicide in the car in his driveway. His mother was upset that the agent had to disclose this occurrence to the buyers of the house, so every precaution was taken to do so discreetly—but it had to be disclosed per California law.

In any case, using discretion and sensitivity is the most respectful route for all parties involved.

Find your target buyer, and don’t settle for a lowball offer right away

You’ll see a lot of articles out there about “bargain shopping” for stigmatized houses. It’s true that a stigma can lower a property’s value and as the seller of a home tainted by the rumor mill, you might have to take a price cut anywhere between 10% and 25% from what the home would otherwise be worth. But this may surprise you: 58% of buyers would consider living in a haunted house.

Don’t settle at the first sign of trouble, Sanborn urges.

“Some buyers will think that they can take advantage of the situation and make a crazy [low] offer,” she says. “They think they’ve got leverage on you. But that doesn’t mean you have to sell it to them.”

The Los Feliz Mansion was bought by famous civil rights lawyer Lisa Bloom in 2016 at a probate sale for $2.28 million. Then, in 2020, an LLC represented by Luxmanor Custom Home Builders CEO Ephi Zlotnitskyit purchased the mansion for $2.35 million. Today, it’s on the market for $3.9 million, with the listing showing artistic renders of the renovated home.

Another tale of finding the right buyer? In 2018, Robert Rutley of Matt & Chace Sotheby’s International Realty successfully sold the Maplecroft Mansion in Fall River, Massachusetts, formerly owned by Lizzie Borden in 1893 after she was acquitted of her parents’ murder.

The buyers were none other than the owners of the Lizzie Borden Bed & Breakfast museum, the far less grandeur house where the alleged ax murder happened. At $600,000, the deal was a “once-in-a-lifetime opportunity to own a significant piece of Fall River’s history,” according to a press release announcing the sale.

The listing description directly mentioned Borden and “her trial, which engaged the nation.” The broker called the home “a significant and historically important Queen Anne Victorian” that had been “painstakingly restored to its original grandeur.” Great marketing made this a surprisingly simple sell to the right buyers.

In 2020, the Maplecroft Mansion was back on the market for $890,000. The previous owners who turned the house into a companion museum and bed and breakfast were compelled to sell the home when the city required more updates to the property, including an elevator, and the COVID-19 pandemic hit. In 2022, a family bought the house, making the mansion a private residence yet again.

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How to sell a haunted house without fear

To sell a haunted house, make an ordinary game plan out of sensationalism:

• Find an agent with experience selling stigmatized homes. Publicity hounds need not apply.
• Target your marketing at serious buyers. This could go one of a few ways. You could highlight the richness of the home’s history or market it regularly and make a private disclosure of lesser-known incidents. For homes generating a ton of press attention, your agent may choose to harness the public interest into a sale or play it straight to avoid throwing fuel on the fire.
• Disclose what’s required at the right time and deliver the message through the proper chain of command. Check your state statutes and real estate disclosure form, and consult a real estate attorney about any gray-area disclosures.
• Hold firm on price if you can. Don’t take the first lowball offer that comes your way, but be willing to wait for the right buyer.

While the public tells ghost stories about your house around the campfire by flashlight, the best agents for the job will be head down and knee-deep in elbow grease. A home’s history aside, the place needs to be market-ready and promoted with a well-executed marketing plan.

After all, you never know what lucky buyer will take an interest: maybe the likes of Parks and Rec weirdos Andy and April or one of the many Halloween-loving couples who marry at spooky venues and prefer haunted houses as their forever home.

Information in this blog post is meant to be used as a helpful guide, not legal advice. If you need legal help with a disclosure rule in your state, please consult a skilled real estate lawyer.

Header Image Source: (Josh Hild/ Pexels)