My dad was 96 years old when he died at home — do I need to tell the buyers if I sell the house? Here's what you need to know before listing a 'stigmatized property' in the US

What sellers need to know

It’s hard to imagine how a haunting can be confirmed, but according to an analysis by Zillow, four U.S. states have real estate disclosure laws that mention paranormal activity.

New York courts can rescind a home sale if the owner previously established a reputation that the house was haunted and then sold it to an unwitting buyer. Similarly, in New Jersey, a seller must disclose “a property purportedly being haunted” if asked by the buyer. Massachusetts and Minnesota, on the other hand, simply mention paranormal or supernatural activity as a “psychologically affected” attribute that doesn’t require disclosure.

The disturbing news of a death in a home can give some potential buyers the jitters, and eight states have laws that compel sellers to disclose a death on the property, per the analysis.

Californian sellers must disclose a death on the property, natural or otherwise, within three years, per the analysis. In Alaska, a murder or suicide within one year must be disclosed. In South Dakota, a seller must disclose if a homicide or suicide occurred on the property. In New Hampshire, a homicide or suicide on the property must be disclosed if asked. Georgia and New Jersey sellers must disclose any deaths if asked.

Delaware and South Carolina sellers must disclose psychologically affected attributes, which can include a death on the property, if asked.

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To buy or fly away?

Significant stigmas seemingly disturb a portion of house hunters, but not all of them. A Zillow survey found that nearly 70% of prospective buyers would buy a haunted house if it checked all their boxes. In fact, nearly 30% of prospective buyers say they would be more likely to purchase a home if it were haunted.

Zillow cites affordability and high interest rates as possibly tipping stigmatized properties to the seller’s advantage. Thirty-year fixed mortgage rates are approaching the 7% mark. And while the seller still sets the sticker price, if rumors of a haunted dwelling are widespread and the cost is high, they may find demand dwindling.

Some stigmas also refuse to die, even those that work in the opposite direction. For years, the “Home Alone” house at 671 Lincoln Ave. in Winnetka, Illinois, had a prominent sign that warned people not to gawk. How the constant and unwelcome attention affected its saleability is hard to say. The home went on sale in May for $5.25 million, according to Coldwell Banker. Six months later, it has yet to be purchased, though the sale is pending.

Haunted, at least in a sense? You could say that — or if you’re Macaulay Culkin, scream it.