The house wasn't chosen because it has a story, but because at night it gave an eerie feel. Much later during the shoot of the film RGV broke the news to the cast that the house they were shoot in has been the house of many famous personalities.
Also the first owner of the house had committed suicide in that very house. The current owner of the house willingly gave the house to RGV for the shoot with a promise of not giving out the address of the house in the movie or the media.
The cast of the movie got quite spooked after getting to know this. They used to try and stay together for night shoots. IT wasn't really the house that did anything, but the eeriness to it continues.
RGV Quote: "we got to know the house has a history after we started shooting for the movie. The cast nd crew did get a little spooked and scared when they came to know that someone had committed suicide in that house. I for myself was too busy trying to scare so never got time to get scared myself