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The latest trend in real estate is “try it before you buy it,” according to The Wall Street Journal.
Los Angeles-based real estate agent Ari Afshar explained the reasoning. “If you can drive a car off a lot, why not test-drive a home?” he said.
A particularly jaw-dropping example of a pre-purchase sleepover took place in Newport Coast, California, where Eric Albert listed his 11,095-square-foot estate for $60.2 million, according to the Journal. Albert obliged an interested couple from overseas when they made the unusual request to stay overnight.
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The test drive escalated into a two-month rental agreement at a staggering $250,000 per month, which included the furnished home, full-time staff and vehicle use. Though the sale ultimately fell through over price, Albert considered the arrangement a “win-win,” since it netted significant rental income.
For buyers, the rationale is about minimizing the unknown. A brief showing can miss critical details. As one person noted in the Journal’s comments section, it’s crucial to see a property “in the dark, at night with the lights off, in the morning commuter rush… Smoking neighbors, trains, traffic, and other quirks & nuisances are bound to pop up.”
This was the experience for a Manhattan couple working with Douglas Elliman agent McKenzie Ryan. Hesitant about a $600,000 Hudson Valley home needing cosmetic work, they requested a 14-hour stay. They brought an air mattress, tested the water pressure and HVAC and listened to the night sounds. Crucially, that real-world experience assured them they could live in the home comfortably before they’d get a chance to renovate, and they secured the house.
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However, for every success story, there was an anecdote that highlighted the significant risks for sellers. The practice opens a “Pandora’s box for liabilities,” Miami-based agent Ruthie Assouline told the Journal. She recounted a nightmare scenario where a buyer’s request for a one-hour dinner at a $25.5 million property turned into an eight-hour party, uninvited guests, a triggered fire alarm and a visit from the fire department.
The Journal also highlights how a sleepover can talk a buyer out of a sale just as easily as it can nab one, including the example of a bachelor who tested a $14.6 million spec home in the Hollywood Hills only to realize during his stay that he actually wanted a more compact space.
An overnight stay can “start highlighting little negative things,” potentially leading to a lower offer or costly repair requests, one commenter noted.
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The bottom line: While the old adage is to “sleep on it” before a big decision, actually sleeping in it is a strategy that favors buyers. For sellers, however, it presents a significant gamble.
Yet, in an era dominated by virtual tours, the sleepover is the ultimate physical counterbalance — a luxury that may be worth indulging if it gets the buyer’s foot in the door and across the finish line.
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This article Is A $250,000-A-Month Sleepover A Wise Investment Or A Luxury Gimmick? Inside Real Estate’s Newest Trend originally appeared on Benzinga.com