[3] The film tells the story of the Davis family as they move to the New England city of Lucifer Falls, which they soon find to be haunted by ghosts from the colonial period.
[4] Thrilled to finally move into a full-sized house in Lucifer Falls, New England, Carlton and Eloise Davis along with their children Jennifer, Corwin, and R.E.
The next morning, the family gathers for a breakfast filled with gags: funny glasses and rubber eggs that squirt water.
Later that night, her family wakes her, and she informs them that she saw the Boogedy Man, describing him as having a yucky, grilled cheese sandwich like face.
Marion did not reciprocate his feelings, so Hanover struck a deal with the Devil selling his soul for a magic cloak which granted him mystical powers.
All three remained as ghosts; Boogedy (how William came to be known as) and Jonathan (who had a cold when he died) are trapped inside the house, and Marion is unable to enter and get her child back.
The children return home and tell their parents about the situation, but Carlton and Eloise are more interested in showing off their new gags, such as a lifesize mummy.
As Carlton begins to assure the children that the house isn't haunted, paranormal activity peaks: the harpsichord plays on its own, the lights flicker, and the mummy appears to come to life, dancing wildly, prompting Eloise to exclaim "That's it!
In the basement, Corwin finds R.E struggling to recover his teddy bear from the thief, who turns out to be young Jonathan's ghost, who still has a cold after all these years.
The boys run upstairs, reuniting with the rest of their family in the living room as Mr. Boogedy appears with a bright flash of green light.
The Davises run for cover behind boxes of gag items, with Boogedy shocking anyone who nears him with bolts of electricity from his fingers.
The house is supposedly no longer haunted, but the Davises hear Boogedy's voice grimly intoning "Wanna bet?