For $5.2 million, you could own a piece of New Orleans history. Ghosts, apparently, are included.
The Haunted Hotel, built in 1829 and located in the heart of the French Quarter, promotes itself as New Orleans’ oldest and best-known haunted hotel. NAI Rampart Commercial lists the 19-guest room hotel—its location in the heart of the French Quarter makes for a distinctive asset. But perhaps more notably is the property’s notorious history.
Once a part of the historic Ursuline Convent, the property is the site of numerous murders dating back hundreds of years. Among the chilling tales is a purported connection to the Axeman, the notorious serial killer who terrorized New Orleans beginning in 1918.
While his identity remains unknown to this day, confirmed reports verified that the Axeman lived in the hotel during the murders, renting a back room while serving as the property’s handyman. Decades later, renovators discovered a bloodied axe, now displayed in the lobby.
Ghosts: A Selling Point or Deal-Breaker?
The hotel embraces its past, weaving its history into themed rooms. Manager Christina Murray reports that about half of the hotel’s guests book because of its haunted reputation. Others come for its cozy atmosphere, including an inner courtyard that offers respite from the French Quarter streets.
Murray confirms that many guests have experienced unexplained happenings, including two who checked out in the middle of the night. Murray suggests that the New Orleans nightlife might ignite guests’ imagination. “I have not seen any ghosts; the live people are scarier to me,” Murray laughingly says. She admits, however, that items occasionally appear unexpectedly, but always in a helpful way. Most guests view unexplained occurrences as more fun than frightening.
Supernatural Marketing Strategies
While a haunted property might deter some buyers, the hotel’s reputation is likely to draw a new owner. “We haven’t officially made supernatural encounters a central pillar of our marketing campaign, but we aren’t completely ruling it out,” says Daniel V. Marse, CCIM, commercial sales and leasing agent with NAI Rampart Commercial.
“To date, we have not received any credible reports of ghost activity verified by qualified industry professionals,” says Marse. “However, as part of sellers’ due diligence, we are actively attempting to retain Van Helsing and Buffy the Vampire Slayer to conduct an official spectral audit. Until they deliver a certified, peer-reviewed assessment confirming or denying the presence of extra-natural forces on the premises, we are keeping our marketing strictly focused on the earthly amenities,” he adds.
While Marse has not personally encountered ghosts, he reports that marketing materials have gone missing before tours, suggesting unknown inhabitants may not be keen on a change of ownership. “During due diligence, we are happy to accommodate, to the best of our ability, an open line of communication so any paranormal entity can get better acquainted with new ownership,” says Marse.
Disclose to Avoid a Legal Fright
Ghost stories may make for memorable marketing, but they can also raise serious questions about disclosure.
“Haunted” falls into the “stigmatized property” category, which NAR defines as: “a property that has been psychologically impacted by an event which occurred, or was suspected to have occurred, on the property, such event being one that has no physical impact of any kind.” Disclosure laws vary by state, so real estate professionals must do their research before listing a property with a reputation of being haunted to ensure adherence to all disclosure requirements.
Consider two notable court cases that reached different conclusions.
In the 2013 case, Milliken v. Jacono, the Pennsylvania Supreme Court ruled in 2014 that a murder-suicide in a home did not constitute an actionable material defect. The case involved a buyer who learned after purchasing the property that a highly publicized murder-suicide had occurred there. The court concluded that the psychological stigma associated with the deaths did not create a disclosure obligation under the circumstances of the case.
Hank Lerner, Esq., chief legal officer at the Pennsylvania Association of REALTORS®, recommends that agents inform buyers about a property’s reputation for being haunted. “Even if it’s not a legally required disclosure, you can save yourself a few headaches and more than a few dollars in legal costs,” he advised in 2014.
A related and often cited 1991 case, Stambovsky v. Ackley, homeowner Helen Ackley had claimed in public interviews that she experienced ghostly encounters in her home but had not told prospective buyers Jeffrey and Patrice Stambovsky about the property’s reputation. After the buyers learned of the reported hauntings, they sued to recover their down payment. Although a lower court initially dismissed the complaint, the New York Supreme Court's Appellate Division ruled that the Stambovskys could pursue rescission of the contract. The seller's own publicity about the hauntings was central to the decision.
The lesson? A property's reputation can matter.
Whether a property comes with a ghost story, a notorious history or another potential stigma, preparation is essential. Whatever issues might spook potential buyers, have well-researched responses ready and agree on truthful answers with the seller. Consider consulting legal counsel if the seller has publicly promoted a property’s ghostly past. After all, the last thing anyone wants is a deal that comes back to haunt them.
