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House hunters are increasingly asking to stay overnight at a property before making an offer on their dream home.
Eric Albert, who is a home seller, recently accommodated a couple who wanted to extend their stay at his property to see if it met their expectations and comfort levels.
‘Houses are a huge expenditure. For $60 million, you should try it before you buy it. It’s a smart thing to do,’ Albert told the Wall Street Journal.
The overseas couple agreed to a two-month stay for $250,000 a month, which included furniture, staff and cars.
They eventually put in an offer on the property, but it was turned down for being under the asking price. Nonetheless, the couple remunerated Albert with a fair amount for their stay.
Amidst inflation and looming recession fears affecting the housing market, home values have dropped in half of the country’s leading markets, making buyers wary of a potential housing collapse.
Fully furnished homes and oceanfront properties have become especially popular for these extended trials.
Overnight stays are a test many sellers quickly agree to, boosting their chances of a sale.
Eric Albert allowed potential homebuyers to stay at his California estate
Albert’s Newport Beach home was on sale for $60 million
Ari Afshar, a Compass real-estate agent, represented a client interested in selling his Hollywood Hills home for $14.6 million.
‘If you can drive a car off a lot, why not test-drive a home?’ said real-estate agent Ari Afshar, who was shocked to learn the homeowner allowed a house hunter to stay overnight for free.
The house included furniture and the option to carry an insurance policy.
The overnighter ultimately didn’t make an offer. However, he purchased a property close by after enjoying the neighborhood.
Realtor McKenzie Ryan had better luck with a couple interested in purchasing a $600,000 property in New York’s Hudson Valley.
Her clients requested they spend the night — agreeing to a 14-hour stay. They tested the water pressure, heat and air conditioning.
The tests were successful, and the buyers bought the house after realizing they could live comfortably before renovation.
Real-estate agent Jade Mills also got lucky when a client made a full-price offer after an overnight stay — closing in only 10 days.
The potential homebuyers were allowed to stay at the fully-furnished home for two months
The couple had access to all rooms and vehicles owned by Albert
Homeowner Connie Howell’s Texas property is on the market months after a overnighters’ offer fell through.
The property had been listed for $545,000 when she allowed a couple to spend the weekend at her house for free.
The couple fell in love with Howell’s home, and planned to sell their house and make an offer on the property. They later backed out due to remodeling costs.
Ruthie Assouline, a real-estate agent with Douglas Elliman, strongly disagrees with sleepovers. ‘I get it in theory, but it’s Pandora’s box for liabilities,’ she said.
Back in 2021, she reluctantly allowed a potential buyer to enjoy an hour-long dinner on the deck of a $25.2 million estate.
The buyer invited friends, stayed at the property for eight hours and set off the fire alarm. The fire department and property manager arrived shortly afterward.
Assouline reached out to the owner, who agreed with the realtor to kick the buyer out — leading to them asking if they could take a shower before leaving.
‘I was like, “I guess you can use the outdoor spa?,”‘ said Assouline, who eventually sold it to another buyer.
An expert homes his ‘try before you buy’ approach becomes a trend
John Serra is using his experience of regretfully buying an unseen property as a way to help others from making the same mistake.
He believes buyers permission to rent properties for three months before making an offer is key to what he calls a ‘try before you buy’ approach.
‘A day, three days, a week—that’s not enough time to get the vibe of a place. You need to stay there for a season,’ Serra said.
The expert believes that if this were to become a trend, it will be beneficial for sellers and buyers.