The most gruesome element of the rumors surrounding the haunted house's reputation was the couple's story. The police had not thought that they would have killed their own children. That sort of thing was too shocking!
Hence, at that time, the police did not investigate the case in that direction. They did not suspect that the parents were the murderers. With that preconceived notion, they believed whatever the two said.
The police believed that the couple had been in a state of shock following the deaths of their children, and had turned irrational out of grief. They assumed that the two children had fallen down because they were playing on the roof. Nobody doubted the words of the couple.
However, when the rumors began to spread, the public believed them. Hence, the cottage became known as a real haunted house.
The drug dealers and gangs thought that nobody would buy that house, but they were wrong. A big rancher bought the place because it was cheap.