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Home selling moves to a new stage

Neighbor with cookies

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TEXT OF STORY

Kai Ryssdal: There was a tiny glimmer of hope for the housing industry this morning. According to the Commerce Department, construction spending didn't fall as much last month as experts had been guessing. But it's still plenty hard to sell the houses that are being built right now. That's especially true in places like Nevada and California, where suburbs that were overbuilt and overpriced look like ghost towns now.

Developers are more desperate than ever to clear those foreclosed or unsold homes off their books. So they're stealing a page from the realtor's playbook. Marketplace's Mitchell Hartman tells us some builders are trying to stage the next real estate turnaround.


MITCHELL HARTMAN: It's a Wednesday morning, and I'm headed toward a cul-de-sac of luxury homes in a gated community called Fox Run Estates about 90 miles north of Los Angeles. Each home has a three-car garage on a landscaped half-acre.

MARK SUCKERMAN: Here, wait a second, I'll come out.

Mark Suckerman thought he got a good deal when he bought this home recently for just $480,000. Turns out, though, it wasn't all good.

SUCKERMAN: It is a nice neighborhood. But there's no kids playing in the street, you don't hear lawn mowers going. I mean, there's nobody here.

But Suckerman says there were people barbecuing next door when he came to the open house, and he even met them when he came back for a weekend tour. His family moved in last Tuesday, and the neighbors' houses were empty.

SUCKERMAN: So who were those people?

Who those people were were actors. Hired to play neighbors in an increasingly cutthroat real-estate market, where "staging" a home now means much more than just putting out fancy deck furniture and baking cookies.

These days, savvy realtors sometimes "stage" whole neighborhoods, mowing lawns on abandoned properties, hiring dog walkers to stroll the streets. And when the financial stakes are high enough, employing professional actors to give the place a truly "lived-in" feel. I get to see this played out the following weekend.

There's a steady stream of potential home buyers coming through, as well as others who may or may not be their future neighbors.

FEMALE ACTOR: Can I get you some cookies, or maybe some coffee?

The actors "staging" this house have worked in commercials and repertory theatre. They asked that their names not be used.

FEMALE ACTOR: Well, I'm a professional actor. I play a lawyer, and she's also a mom. She's just not going to have enough time to bake you brownies when you move in.

MALE ACTOR: When I saw the call for a "living-theatre" piece I thought it'd be brilliant. Of course, I play the father, who's a little more laid back and fun to be with. Of course, I can talk to you about my power tools. In an American accent, of course.

FEMALE ACTOR: Nobody wants to hear about the power tools, Roger. That's not working.

MALE ACTOR: I'll talk about my power mower, then.

FEMALE ACTOR: As I said, we're method actors.

Their role isn't limited to chatting over the backyard fence. They might invite their future neighbors to a Little League game. The teams are borrowed from another town
or attend a "staged" church service and sing hymns.

Consumer advocates charge this is false advertising, and they say it may even be illegal to fill empty homes with temporary neighbors, then move them out once a sale closes.
But developer Randy Denaro says nothing they're doing goes over the line.

RANDY DENARO: Look around. You don't see anybody impersonating a cop, do you? Because why? Because that would be illegal. It's an image of a nice neighborhood, even if it's not nice right now.

After all, Denaro says, the run-up in home prices was partly built on smoke and mirrors, and the recovery might have to be as well.

I'm Mitchell Hartman for Marketplace.


Thanks to the following for helping to stage our April 1 feature:
John Ezelle
Adrienne Flagg
Bill Barry
Michael Clapp
Interstate Firehouse Cultural Center

About the author

Mitchell Hartman is the senior reporter for Marketplace’s Entrepreneurship Desk and also covers employment.

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Ben Dover's picture
Ben Dover - Apr 13, 2009

I myself am an Actor Buyer. I like to go to Open Houses and walk around pretending as if I were actually considering buying overpriced POS RE that is devaluing in price at the rate of $20K a month.

Then I go home and turn on the TV to watch an actor who potrays our president makes believe he actually has a plan to save the economy that DOESN'T involve throwing TRILLIONS at his Wall St buddies.

Watching Marcitz's picture
Watching Marcitz - Apr 13, 2009

Of course what is not a joke is that renters are still invisible and now look like the smart ones. There are 100 MILLION invisible renters in the US (invisible to public policy and support). Its time to talk about how homeownership is not the only viable lifestyle choice. Please tell us a TRUE story of homeloanership gone wrong at:

http://invisiblerenters.com/2009/03/01/renters-of-the-world-unite/

Alex Wang's picture
Alex Wang - Apr 9, 2009

Can't believe I fell for this, even blogged about it a week after it broke! Unbelievable. I'll definitely keep a look out next year... I hope.

Alex H. Wang
http://www.realestaterain.com

Dan Glickman's picture
Dan Glickman - Apr 5, 2009

This actually did happen in San Diego during the height of the condo boom. When you visited the model suites of some projects the windows would face a unit containing an attractive young person. The 1 bedroom unit might face a shapely woman doing yoga while the 2 bedroom unit faced a buff shirtless man reading.

Gerri Gribi's picture
Gerri Gribi - Apr 3, 2009

You got me right up until the caveat to "check our site for previous April 1 jokes" But did somebody on your staff research thoroughly to be sure this really ISN'T happening someplace? If it hasn't yet, I wouldn't be surprised if you story gives people ideas!

Allan Murphy's picture
Allan Murphy - Apr 3, 2009

In Japan, such things are not uncommon. See the link below:
http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/7818140...

I was listening to the podcast on 3 April and took the bait until the Little League came up. Very well done! Arigato!

Conned Sumer's picture
Conned Sumer - Apr 2, 2009

My wife said this had to be the 4-1 hoax because "Wouldn't people drive by at night to see if it's a safe neighborhood?" But I can see Kai asking that too...Developer: "Yes, we have had a few potential buyers with that interest." Kai: "And.." Well, the reaction has been pretty positive. There's not a lot of noise at night. People seem to go to bed early. All the cars are in the garages, not out on the streets, so they can't get broken into." Kai: "So they basically get a ghost town warm and fuzzy..."

Gene Baker's picture
Gene Baker - Apr 2, 2009

It is so believable given today's real estate market. A friend of mine worked for a developer in Colorado and was actually asked to live in an empty model house so the neighborhood wouldn't look so vacant. Great April Fools joke two years in a row.
As my mom would say: "They got you hook, line and sinker"

Steve Clem's picture
Steve Clem - Apr 2, 2009

I spent the whole day wary of the April 1st radio story and fell for this one like a moth to a flame.

Pat Kennedy's picture
Pat Kennedy - Apr 2, 2009

I totally believed every word of this story, and I'm a real estate broker and blogger! I even did a post on it! What a hoot! The funniest part is that it could be totally true. OK, I've mowed an extra yard in my time!

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