Would you buy a haunted home? What Kentucky sellers have to tell you — and what they don't

Meghan Smith was thrilled when she was able to purchase a house in Crescent Hill, her dream neighborhood, last fall, but the house came with a slightly unusual feature.

Smith, who is a realtor at Homepage Realty, said she "definitely thinks there's a spirit in the house."

The home was purchased by Smith and her husband after the previous owner, who had lived in the house since 1988, passed away in the home. It was a couple of days before the gardener found her, Smith said.

But the idea that the house could possibly be haunted by the previous owner's spirit didn't stop Smith.

"I didn't care, I just wanted to be in the area, and specifically with these older homes ... there's more than likely someone that passed away in most of these homes over here, it's just whether or not someone's aware of it," Smith said.

According to a new survey from Zillow, a real estate website, nearly 70% of perspective buyers would buy a house believed to be haunted if the property met all their wishes.

"These findings highlight the extreme compromises buyers are willing to make in order to land a home in today's housing market," the Zillow report stated.

Nationwide, housing inventory remains more than 10% lower than this same time last year, and more than 40% lower when compared to pre-pandemic 2019 levels. And for some, the housing market remains frightening this season as a new Zillow analysis finds buyers now need a six-figure income to comfortably afford the typical U.S. home, assuming a 10% down payment.

Do I have to disclose if my house is haunted when selling it?

Jay Pitts, the principal broker at RE/MAX Premier Properties, said that while all sellers are required to fill out a seller's disclosure under Kentucky law — a form provided by the state disclosing the seller's knowledge of the condition of the property — disclosing stigmatized properties, which could include paranormal activity, is not required. Currently, only four states, New York, New Jersey, Massachusetts and Minnesota, deal with disclosures of paranormal activity.

"A stigmatized property is a property where something has happened, it could even be alleged to have happened, or it could be alleged that there's some sort of psychologically or emotionally charged claim about the property," Pitts told the Courier Journal. "More commonly put, the property is claimed to be haunted."

Pitts said a stigmatized property may also be a property where a murder or suicide occurred. If a violent event catches the public's attention, it could lead to rumors of a property being haunted.

And while Kentucky law doesn't require the disclosure of stigmatized or haunted properties, Pitts said if a buyer directly asks a seller or the seller's agent, "they have to answer truthfully."

For some, that could be an incentive. Zillow found roughly 30% of buyers would be more inclined to purchase a home if it was thought to be haunted.

"There are people out there that are willing to ... not allow a beautiful piece of property to go to waste just because something that no one else had control over happened there," he said.

What is it like living in a haunted house?

Given the previous owner had lived in the house Smith purchased for about 35 years, many of the neighbors were familiar with the story of her passing.

"People are very curious about the house in general," Smith said, noting that originally some of the neighborhood kids didn't want to come in the house to play with her children.

Rather than shy away from the stigma surrounding the house, the Smith family leaned into it, painting the house black and outfitting it with copper gutters. Smith jokingly said her children now refer to their home as "the Halloween house."

"It kind of took on a life of its own," Smith said. "I think, obviously, because she had passed away in the house, people have this preconceived notion that it was haunted, and then we went one step further."

Leaning into the "Halloween house" vibe didn't occur randomly. The first time Smith and her husband brought their sons to see the house, Smith captured a video where she says her 3-year-old was "seemingly pushed" into the wall, and she believes it to be the spirit of the previous owner.

"It's like someone's pushing him and there's like these rays of light that are coming in through the window and it's ... in the room where she passed away," Smith said.

Not one to shy away from a ghost, Smith admits she did go to a crystal shop near her new home and bought crystals and sage, as an added measure of caution against any possible spirits.

"We invited good intentions into the home, and since then, we have not really had an issue," Smith said.

Now, Smith is part of the some 12% of buyers nationally that are convinced they live in a haunted house. Who knows, maybe you do, too.

"I think that there's probably spirits in everybody's home of somebody that's from the past or whatnot," Smith said. "But I definitely think that if you make your intentions known to a previous spirit that maybe has passed away, then I think it all can be a very happy experience."

Contact business reporter Olivia Evans at oevans@courier-journal.com or on Twitter at @oliviamevans_.

This article originally appeared on Louisville Courier Journal: Selling a haunted house in Kentucky? Here's what you need to know