While the idea of living in a haunted house might send shivers down your spine, experts have been exploring the many ways these properties might be perfect for the right home buyer. Certain properties are shrouded in history or legend, which brews both intrigue and fear. Most people quickly reverse course when they learn—or sense—a home's haunted history. Strange noises, paranormal activity, ghostly sightings, or a history of unnatural deaths are enough to make most potential buyers turn the other way, but according to Zillow, 20% of buyers say it wouldn't impact their purchase decision.
That 20% might be on to something bigger than unexplained spirits. In fact, experts agree that brave buyers may be facing an unexpected opportunity.
To learn more about why home buyers should open their mind to buying a haunted house, we tapped Jennifer Beeston, a financial expert and top 1% mortgage lender. She shares many insights on the home buying and lending process on her YouTube channel.
Real Estate Steals
"Generally, when you’re dealing with a house that appears significantly more affordable on the listing, it will be due to something like major repairs needed, an undesirable location like near a freeway, or something that is a true deterrent," explains Beeston, who by all accounts is not a real estate witch. "The recent Zillow survey reports that a haunted house could be in a great location and in perfect condition, but buyers will still are NOT interested."
This is when she goes on to point out that haunted properties have been known to sell for approximately 10–25% less than the current market value. In a competitive market with high interest rates, this alone could be enough for a buyer on the fence to take a chance on a piece of 'horrifyingly good' real estate.
Great Leverage for Negotiating a Deal
"A haunted home can be an opportunity to get a great deal in an otherwise competitive housing market for the simple fact that you will have less competition," defends Beeston. "Despite home values maintaining record highs post-pandemic, nearly two-thirds (65%) of prospective buyers say they would NOT buy a haunted house even if it were priced lower than the rest of the market."
She adds, "Additionally, we all know ‘location, location, location’ is major factor in home buying – but 68% prospective buyers say they could NOT be convinced to buy a haunted house even if the home were in their desired location."
Once you are in contract on the haunted house, Beeston adds that the property owner may even be more willing to make concessions or do repairs. When the paperwork is locked in, they understand the risk involved with putting the house back on the market. All too often, they end up spending their time dealing with paranormal enthusiasts who are just looking for a ghost and not a home, are forced to post another price drop, or navigate changes in disclosure laws.
A Scary Stream of Income
Still not convinced? What if we said that you didn't actually have to live there? "Buying a haunted house could be a great additional source of income," agrees Beeston. "Once you check the local county laws, see what money-making opportunities you’re able to explore! Like offering ghost tours led by mediums, an event space to hold seances hosted by a local clairvoyant helping people reunite with loved ones, or even Airbnb a room in the home overnight to paranormal seekers." If visiting Salem taught us anything, there's plenty of potential for fun-seekers, especially in the fall months. She adds, "A great idea for owners at Halloween time is to trick out the house and charge admission."
