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When potential buyers tour a model luxury apartment in West New York, N.J., they can plop on the couch or grab sparkling water from the fridge. They can’t, however, brush their teeth with the electric toothbrush or scrub the toilet with the marble-clad brush next to it—none of the plumbing fixtures work. But it’s homey touches like these that make a model unit feel “lived in”—and help make a sale.

“You want customers to daydream a little bit. Everyone always buys what they see,” says Alexander Hovnanian, developer of Nine…