Haunted houses are not for all buyers

Should I buy a house that may be haunted? I’m interested in a historical home but there are rumours of paranormal activity.

Historical homes associated with paranormal tales may not be for everyone. But there can be benefits for those who are brave enough to take on the eerie and the unknown.

If a property is believed to be visited by otherworldly forces, it may be considered “stigmatized” by some potential buyers. In the context of real estate, a stigma can be defined as a non-physical, intangible attribute of a property that may elicit a psychological or emotional response on the part of a potential buyer. Something may have occurred in or near the property that does not affect the property’s appearance or function but might be considered by some as emotionally unnerving.

Examples of property stigmas include:

it was the scene of a major crime;

it was previously owned by a notorious individual;

it was the scene of a suspicious death;

there are reports that it is haunted.

Generally, sellers are not required to disclose psychological stigmas relating to a property. Stigma is about perspective — in other words, what one person might find completely unacceptable may not be of any concern to another.

Talk to your salesperson about anything that would concern you beyond the physical attributes of the property and that would affect your enjoyment of the property.

You may also want to do some independent research to see what you may uncover. You can search online and go through local archives, and neighbouring residents can often be a good source of information too.

In the spirit of the Halloween season, here are a few potential benefits of buying a property with a spooky reputation.

There might be less competition: When rumours are swirling about possible supernatural activity, there may be a tendency for some people to steer clear, which could reduce your competition. This could mean a better shot at having your offer accepted. You might get a better price: Ask yourself, “Could you live at that address?” For some, the answer is an emphatic “No!”

You’ll be able to embrace the Halloween season: If known as a local haunted house, your historical home might be one of your community’s star attractions throughout October. Whether you actually believe your property is haunted, you can still embrace the spooky reputation and go the extra mile when it comes to decorating for Halloween.

Historical properties can be attractive, spacious, well-constructed and located in prime neighbourhoods. Ownership of a historical home can also give you a sense of pride and accomplishment as you restore it to its original glory with modern-day touches.

Should it be discounted from consideration because of the chilling tales associated with it? Find out ... if you dare.

Joe Richer is registrar of the Real Estate Council of Ontario (RECO) and contributor for the Star. Follow him on Twitter: @RECOhelps. This column is for general information purposes only and is not meant as legal or professional