I have a friend who always cites Gene Wolfe as his favorite writer and I have been meaning to read a story by him for years. "The Little Stranger" is the story of an elderly woman, living alone, who hears her house moaning most nights. No one can locate the source of the problem. She writes about it to a now-dead friend and in fact, it is through her letters to him that we follow the story.
(This is a story hard to describe without giving things away) But I will try. The woman decides that if she were to add a small house to her property, the moaning might disappear. (You can never follow her logic in this tale) When a caravan breaks down outside her house, she strikes a deal with the family that if they build the house for her, they can stay on her land until they fix their caravan (good deal for her!)
The question is: is she a witch? The people in the caravan never come out ahead in their bargaining. But it's not clear that she does any real harm, even when two children named Hank and Greta turn up. I enjoyed this story but it would not make me cite Wolfe as my favorite writer. It is a bit too circuitous and vague for my taste.