Home selling moves to a new stage
As desperation sets in among home sellers, some are using actors to simulate lively neighborhoods in otherwise empty developments. Mitchell Hartman reports this April 1 exclusive.
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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
Comments
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04/13/2009
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.
From Palo Alto, CA, 04/13/2009
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/
From Palo Alto, CA, 04/09/2009
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
04/05/2009
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.
04/03/2009
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!
From Tokyo, 04/03/2009
In Japan, such things are not uncommon. See the link below:
http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/7818140.stm
I was listening to the podcast on 3 April and took the bait until the Little League came up. Very well done! Arigato!
From Washington, DC, 04/02/2009
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..."
From San Jose, CA, 04/02/2009
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"
From San Diego, CA, 04/02/2009
I spent the whole day wary of the April 1st radio story and fell for this one like a moth to a flame.
From Washington, DC, 04/02/2009
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!
From Virginia Beach, VA, 04/02/2009
That's so 2006:
"In 2006, Centex Homes of Dallas tested this idea by hiring actors to portray a family during showings of homes for sale. The "family" would act out typical domestic scenes and interact with potential buyers."
http://www.frontdoor.com/Sell/Take-Home-Staging-to-the-Extreme/2099
From Fort Worth, TX, 04/02/2009
I fell for this hook, line, and sinker, and was even on the lookout for it after last years IRS rebate!
Thanks.
From Washington, DC, 04/02/2009
I loved the April Fool's story on Marketplace last night. Every year, on April 1, I listen more attentively than usual to Morning Edition, All Things Considered and Marketplace, for hoax stories. I was so angry at Robert Reich's piece on MP Morning Report about the conscience tax rebate story for bankers until he said "Happy April Fools" and I burst out laughing. I also believed the story on So Cal real estate schemes in the evening all the way up to the end. Love you guys. I can't wait till next April 1.
From Rancho Palos Verdes, CA, 04/02/2009
This would be Ray Bradbury's take on Stepford, CT.
From NY, 04/02/2009
ever seen the movie "Truman Story?"
From Boston, MA, 04/02/2009
This story gave me the creeps - this scenario is plausible (especially in So Cal). I was so relieved that marketplace had simply put one over on me this April 1st.
From Moon Township, PA, 04/02/2009
I was laughing so hard with incredulity during this segment that I almost had to pull over the car in order to prevent a fender bender. You April Fooled me up until the “actor interviews.” That was just too much. The scary thing is that I actually picture some desperate real estate developers thinking to themselves “Hey! That’s a darn good idea!”
From Washington, DC, 04/02/2009
I can't believe I feel for this story and I was ready to go get a McMansion at a bargain price! Good one Kai!
From Concord, MA, 04/02/2009
Are you aware of how plausable this story is?!
Good one!
From Auburn, CA, 04/02/2009
OUCH!!! I recently moved to Italy, and was telling my co-workers how ridiculously low the American economy had sunk, along with its residents hahaha. You got me good...
From Glendale, CA, 04/02/2009
Call me a killjoy, but I don't think it is at all okay in an ethical journalistic sense to run fake stories, and only identify it vaguely as an "April 1 feature" at the END of the story (and not even within the audio package?). So, for the record, I'm not cool with this. Should be labeled more clearly.
From Las Vegas, NV, 04/02/2009
No, you did not get me with this one. Last year? Yes: the IRS rebate. I totally bought into it.
From Hillsboro, OR, 04/02/2009
Honestly, you got me until the church service. It really did not seem like that big a stretch after hearing stories about paying people to live in your home while you try to sell it.
Good job.
From Berkeley, CA, 04/02/2009
I heard this story this evening driving home and it never crossed my mind that this wasn't real. Because, sadly, I wouldn't put it past realtors. It was too close to real (but totally bizarre!) Thankfully, I have never been so hoodwinked! Kai Ryssdal, I love you, man. Thanks for a great prank.
From Los Gatos, CA, 04/01/2009
I loved the fact that you fooled me. I was immobolised in my car,in the driveway, and listening to the radio,getting more and more shocked and outraged as the depth of the deception grew.It was only when I relayed the story to my 13 year old daughter that she picked it as an April Fools Day prank.You truly made my day. Lisa
From Portland, OR, 04/01/2009
OK Mitchell, I'll see you at the potluck. You so completely got me, I was going to call my son in LA and ask him if he knew this was going on. And the tip off was so obvious, we were the marks and you suckered us man. Nice work using the Interstate Theatre folks.
From Arnold, MD, 04/01/2009
I was so angry to hear how low home builders stooped to sell off their overpriced/overbuilt inventories before I realized this was an April fool’s joke. Especially since I listened to an ethics report earlier in the day on my local NPR station. You got me! Keep up the fantastic reporting.
From Seaside, CA, 04/01/2009
Aw man, you got me bad. Not only was I completely taken by the story, I stayed in the parking lot to hear it end .... and then over dinner told my husband about this amazing story I heard on Marketplace. Only to hear him reply, "Are you sure that wasn't an April Fools joke?"
From CA, 04/01/2009
VERY CLEVER
From Long Island, NY, 04/01/2009
You guys got me good... had no idea until the mention of April 1 after the story. Though the staged little league and church was a bit of a stretch. And to think I was reading earlier in the day about fake stories.
From Berkeley, CA, 04/01/2009
I laughed and laughed when I realized I had been taken, yet again! And I laughed even more when I read CK's comments about reporting this to the California Attorney General. Thanks to all of you for making my day! (not at you, Christopher, WITH you!)
From Oakland, CA, 04/01/2009
I was bamboozled. I was flummoxed and gobsmacked. Yes, you took me in. I could see every detail in my mind's eye: The Hawaiian shirted man at the barbecue; a bikini-clad young woman fresh from the pool; the smell of cut grass and barbecue, and the play of unruly kids.
04/01/2009
lol... you guys totally got me! i seriously thought this was real until the very last second when Kai talked about the archive of april 1st stories.
From San Francisco, CA, 04/01/2009
OOPS! My apologies to readers. I clearly missed the joke, Doh! Still, no doubt the act in question -- were it real -- would be fraud, and the actors accomplices to it. I got carried away because we are subject to constant real estate and developer shenanigans. Some of us really wish the California market would be allowe to correct so that it would move down from ten to less than five times annual income.
04/01/2009
funny!
From San Francisco, CA, 04/01/2009
I posted earlier calling this activity a form of "bait and switch" fraud. I believe the actors are liable as well as they knew they were hired to "stage" a false environment for the purpose of luring prospects into lucrative commercial deals. Shame on them no less than the developer.
From San Francisco, CA, 04/01/2009
Housing is still way overpriced in California. There's no doubt to me that the developer, clearly an arrogant, pompous xxx, has conducted bait and switch, to the tune of 100K+ per sale. I sent the story to the California Attorney General's Office. I hope the AG agrees and the developer gets new housing, in prison.
From chicago, 04/01/2009
this actually gives me a great idea for when i sell my own house later this year. hmm... thanks, marketplace!
From Northridge, CA, 04/01/2009
OK, you got me, I had left my car before the end of the story so I missed the tag. Very well done! Thanks for the chuckle (once I figured out what day it was).
From Boulder, CO, 04/01/2009
This was funny on the radio today. You guys have gotten me 2 years in a row!
From Spotsylvania, VA, 04/01/2009
Maybe a better way to judge the neighborhood would be to have someone under a raised car hood, some toddlers with overloaded diapers running around the backyard or a moody teenager oblivious to the world wearing headphones!
Now that is a real neighborhood!
From Santa Rosa Valley, CA, 04/01/2009
this being LA you will probably have out of work actors lining up for jobs as "neighbors". Thanks for a good April Fools joke!
From Long Beach, CA, 04/01/2009
You really got me with this one. I was about to stop my car and call my husband! Good Zinger!
From Los Angeles, CA, 04/01/2009
Until I realized that it was April 1st, I thought this was a true story. My first impression was that it reminded me of Stan Freeburg's "The United States of America" episode where the Indians sell Manhattan to the Dutch. After the sale was completed for $24.00 of junk jewelry they strike the set and it turns out that the Dutch have just bought a totally concrete (unfurnished) island.
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