You do not solve the murder strictly by staying in town, technically. However all the clues you need to point you in the right direction are in town. It can be done without using smelly items/pet pal which only give you the primary suspect anyway. That will not tell you where to go in order to investigate the suspect.
Lastly you will need an item from town to complete the quest if I am not mistaken. It is needed to fully investigate the primary suspect.
Good luck.
Edit: I just realized I completed this quest prior to finishing another area in Cyseal, so I can't say for certain that item is needed, or if perhaps the missed area (also not in town) offers an alternative method of investigation or options not involving breaking in to everyone's houses.
Last edited by Ailurophile; 16/07/14 02:37 PM.
