Story Created:
Jul 31, 2008
Story Updated:
Aug 3, 2008
Temporary Tenants
Vince Vitrano
It's a buyer's market in real estate, and many houses are sitting empty much longer than the owner would like. But some homes are feeling a little less lonely these days.
Thomas Scott is right at home in the gorgeous million dollar mansion he's staying in now. He sold his own house and wanted to hold off on buying another.
"This is a great way to wait the market out," Thomas says.
He's now a 'Home Manager', basically a house sitter, of sorts.
"It's not a lease. I'm not a tenant. I don't rent the house. I'm not a homeowner. I don't know how long I'm gonna be here," Thomas explains.
He works for a company that's helping 'stage' the home, to sell it quicker. Staging usually means adding furniture, but now it can mean bringing in a full time tenant, too. Rodney Davis owns a home, and hopes a live-in helps him get a sale soon.
"Since the real estate market is slow, we're hoping to get more exposure," Davis says.
Surveys among Realtors show empty homes tell buyers the seller is desperate, and offers that do come in are traditionally low. Bert Lyles works for a staging company called 'Showhomes'. He says homes sell better with a 'lived-in' look.
"Almost two-thirds of Realtors believed that the showhome, fully staged, would sell at least 10% higher price," Lyles points out.
The trend of using home managers is growing nationwide. It happens most often with higher priced homes, but is catching on across the board, with homes in all price ranges.
His definition of the price range: "As low as $150,000, and priced as high as $10 million."
The house sitter pays a percentage of the mortgage, typically 25-50%, to help cover costs. A good company screens its sitters carefully, checking criminal history. Smokers and pet owners are out. Tom loves the 'job' even though there's no telling how long he'll live in any one home…
"I've been in a home as long as six or seven months and as short as 45 days, so it's a little adventuresome," he admits.
Once the home does close, the staging company also gets a percentage of the sale. The staging company also pays for the move.