Luxury Developers Using Experience as Enticement

More luxury real estate developers are offering try-and-buy test programs to potential buyers as a means of showcasing the experience of luxury to entice buyers to purchase.

As a result of rising interest rates, tax law changes limiting deductions for mortgage interest and property taxes, and still-appreciating home prices, high-end homebuyers have become more discerning and slow-moving in their decisions to invest. Stephanie Anton, president of high-end real estate firm Luxury Portfolio International, tells The New York Times, “In markets where there is plenty of inventory, buyers are not afraid to take their time, do their research and ensure they feel they are making a good decision. People are not going to overpay or make an emotional decision.” Recognizing this change in temperament, developers are offering free or paid stays in the for-sale unit as a "test," so that buyers can get a feel of the home and see themselves living there, and then ultimately purchase it.

Some experts say the try before you buy concept is perfect for a risky time — it allows potential homeowners the chance to be sure that they’re making the right choice. While buying a house may be about your personality, Ms. Anton of Luxury Portfolio International said, “It’s also a financial decision.” In uncertain times, it may be best to wade carefully into that kind of big choice.

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