By Serj Markarian, Licensed Real Estate Salesperson and Manhattan Market Expert
A week from today, New Yorkers of all ages will take to the streets in costume to celebrate one of the city’s favorite holidays—Halloween. It’s a time for both young and old to embrace the thrill of escaping reality, whether by attending house parties, joining the iconic Halloween parade in Greenwich Village, or exploring haunted houses. This year, NBC adds to the fun with a first-ever Jimmy Fallon-themed haunted maze, "Tonightmares," at Rockefeller Center—an experience said to be quite the scare, yet loads of fun.
While haunted houses created for entertainment deliver scares for fun, some real-life properties come with their own unsettling histories. Disclosure requirements for deaths in a home vary by state; in many cases, sellers are not obligated to reveal if someone passed away peacefully. However, some states do mandate disclosure for deaths caused by suicide or murder.
In New York, sellers are not required to disclose whether a death or crime took place in a home. But if there have been claims of paranormal activity, they must inform potential buyers. If you’re a buyer concerned about a property’s past, it's wise to ask the listing agent or seller directly, as they may not be obligated to volunteer this information without being prompted. Only a handful of states — including New York, Massachusetts, Minnesota, and New Jersey—require disclosure of suspected hauntings or paranormal activity.
These so-called "stigmatized" properties can deter buyers who are superstitious or uneasy about a home's history. Conversely, they may attract "ghost hunters" or those intrigued by the mysterious. Stigmatized homes often see reduced values, as potential buyers may use the information to negotiate a lower price—sometimes expecting discounts of up to 20%. This is one reason why sellers might hesitate to disclose more than legally required.
Interestingly, a 2023 Zillow survey found that about 67% of prospective buyers would consider purchasing a supposedly haunted house if it met their criteria for features, location, or price. Another report by Real Estate Witch, noted that 43% of Americans would offer up to $50,000 below market value for a haunted house, indicating that many are willing to overlook a spooky reputation for the right deal.
Would you live in a haunted house if the price was right?
For questions on the Manhattan real estate market, connect with Serj Markarian here.
Posted by Hannah Minnick, BHS Content Team
