A new trend is emerging in the real estate market where potential buyers are asking for "test drives" of homes, sometimes involving overnight or even multi-month stays, before committing to a purchase. This practice, likened to test-driving a car, is gaining traction in both luxury and mid-tier markets. For instance, in Newport Coast, California, an overseas couple leased an 11,095-square-foot estate priced at $60.2 million for two months at $250,000 per month, including staff and luxury cars, to experience the property fully. While they ultimately bid below the asking price and bought another property nearby, the seller viewed it as a worthwhile marketing tool.
Real estate agents are divided on this trend. Some, like Compass agent Ari Afshar, embrace it as a creative marketing approach that builds buyer confidence, citing a client who stayed in a $14.6 million, 8,500-square-foot spec home before realizing they wanted a more compact space. Others, such as Douglas Elliman’s Ruthie Assouline, warn of potential liabilities, recalling an incident where a dinner invitation led to an unauthorized eight-hour stay with uninvited guests and a triggered fire alarm.
The appeal for buyers lies in gaining a deeper understanding of a home beyond a quick tour. This includes assessing water pressure, heating/cooling, natural light, and the overall neighborhood vibe. Some buyers, like John Serra, believe a few days or a week is insufficient and are willing to pay a premium for longer rental periods to thoroughly evaluate a property, reflecting a desire for peace of mind rather than discounts. This practice can be seen as an investment for buyers and a marketing strategy for sellers, potentially reducing future litigation by addressing issues upfront. It is becoming a mainstream option, moving beyond a rare perk for ultra-wealthy clients, but raises questions about security and property protection.
