“Try it Before You Buy it”: Testing a Home Before Buying

To some, the thought of being able to “trying it to see if you like it” before purchasing residential real estate is unconventional.  However, more and more residential home buyers are opting, given the opportunity by a seller, to stay and sleep over at a residence that they are contemplating purchasing.  While this option is usually extended to luxury residential real estate properties, the trend is making its way into the general residential real estate marketplace.

Why Would a Seller Allow for This “Try it Before You Buy it” Approach?

For some luxury residential real estate sellers, offering overnight stays allows for sellers to charge a seasonal increased rent during the “stay” period.  This is perceived as a “win win,” allowing a potential buyer to experience the home during season without committing at once to its purchase.  For a buyer, experiencing a “test” period provides an opportunity to experience the nuances, location, and feel of the home without jumping in and purchasing the home immediately.  Testing the water pressure, heat and air conditioning, daylight and sunset, as well as the neighborhood vibe all are factors for “testing” a home prior to purchase.

There are some sellers who do not charge a rental rate for the “test run” or use of their home, especially if their property is vacant or not completely furnished.  Potential buyers bring air mattresses, linens, and other necessities for their trial period.

What About Liability During the “Testing Period”?

Whether the residential home “test run” requires a short-term rental of the property or is free, both parties sign contracts memorializing their agreement, and potential buyers purchase insurance for the period in which they are staying at the residential property.

Perhaps fundamental to deciding as to whether to allow for a “sleep over” of one’s residential real estate is the real estate agent.  Why?  With these types of deals, the real estate agent is the one who may recommend the test run based upon the buyer’s credentials, one’s common sense and intuitive abilities, and whether the house is already presented as a short-term rental.

What Does This All Mean?

Although “test runs” of residential real estate is primarily geared towards the high luxury residential real estate market, more buyers are requesting the “try before buy approach”.  It may take some time before this practice becomes more commonplace, but this practice is still interesting and creative.  Should a potential buyer actually have a “test-drive” at the home and ultimately purchase the residential real estate property, it would change the complexion of “conventional” real estate contracts, as due diligence and seller disclosures will change.  If more and more homes are being “test run” by way of short-term rentals, less potential litigation may result as any issues relating to the residential real estate will be known and accepted by both parties.

For thirty plus years, Oppenheim Law has served local, national, and international clientele particularly in the areas of real estate and business law. Our sister company, Weston Title & Escrow, Inc., has provided title insurance and title-related services for three decades. Should you have any questions related to a real estate or business matter, feel free to call us at 954-384-6114 or contact our firm directly at contactus@oppenheimlaw.com, and should you need assistance with a commercial or residential real estate closing, please call us at 954-384-6168 or by e-mail at contactus@westontitle.com.