Home Selling in 30078>Question Details

A.T., Home Seller in 30078

We are considering selling our home furnished. Any Advise?

Asked by A.T., 30078 Sun Apr 6, 2008

Is this a good idea and anything we (or our agent) should prepare for?

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A.T.,

In our GEORGIA market where a lot of the buyers are relocating here, they may find that a furnished home is a big bonus. However, don't expect the furniture to increase your sales price, especially in regards to an appraisal.

In my experience, including the furnishings may help you close the deal, but it certainly won't help you if you overprice the home because of it.

Get the price and the marketing plan right for your home first! Then, you can always mark your furniture as negotiable.

Remember, not everyone will like your taste, so you don't want those people taking huge discounts off your home due to the furniture.

I tell my sellers, "Make 'em ask for it." If they ask they want it, and they value it on some level. If you include, it's a throw in, as in no value.

Market the home as furniture negotiable, but I wouldn't let it affect the price.
Web Reference: http://www.gahomedigest.com
1 vote Thank Flag Link Sun Apr 6, 2008
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
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A.T.

In my experience, sometimes including furniture in a real estate transaction muddies the waters. Not always, but sometimes it makes the negotiations more difficult as they are buying the home and they are picking through individual pieces of furniture trying to decide what they want to keep and what should go. It becomes a distraction to the negotiations. I have seen buyers and sellers disagree over furnishings. And I have seen contracts fall apart over furnishings.

For the buyer's protection, the contract must be written to include the furnishings. However, some lenders don't like to see the furnishings listed on the Contract to Purchase, for appraisal reasons, as it is a real estate sale, not a furniture sale. Often times they request the furnishings be included under a separate addendum, apart from the actual contract.

Real Estate transactions between buyers and sellers can often times be filled with emotion. Sometimes personalities conflict and occasionally tempers flare. Adding furniture to the contract for the sale of a home, sometimes (not always) makes the transaction more difficult.

Depending on the individual buyer and seller, often I have told sellers that if they are interested in parting with furniture, then keep it separate from the transaction to sell the home. I have seen well meaning sellers offer to leave furniture for the new buyer, only for it to turn around and backfire on them. If they determine they would like to have a furniture sale, then they may do so on their own.

Best of luck to you,
Sandy Shores
1 vote Thank Flag Link Sun Apr 6, 2008
I would take to your agent regarding this most buyers will have there own furniture they may want to purchase a few items from you.
0 votes Thank Flag Link Thu Sep 10, 2015
I absolutely wish that you would totally furnish your homes. They are furnished beautifully and
decorated so well. It would take so much pressure off of the new owner. Please consider doing this or making it an option for a fair amount of money to the buyer.

Angela Stephens
0 votes Thank Flag Link Wed Sep 9, 2015
FYI.......the lender will not finance personal property(your furniture/appliances, etc.). If you add the $ amount you think the furnishings are worth to the home's price, will it appraise for that much more? Usually the answer is NO. If it did, then it is illegal to do it anyway. Be careful
0 votes Thank Flag Link Thu Jan 20, 2011
FYI.......the lender will not finance personal property(your furniture/appliances, etc.). If you add the $ amount you think the furnishings are worth to the home's price, will it appraise for that much more? Usually the answer is NO. If it did, then it is illegal to do it anyway. Be careful
0 votes Thank Flag Link Thu Jan 20, 2011
Do not do it unless you are willing to take .10-.15 cents on the dollar. I am sure your stuff is nice but more than likely not really what the Buyer wants or needs and more than likely they already have furniture. Appliances, maybe.

Get the home on the market, advise the agent to let Buyers know the furnishings are for sale, get the home under contract and then hire an estate sale company to sell them for you.

Matt Hermes
Web Reference: http://www.matthermes.com
0 votes Thank Flag Link Tue Dec 22, 2009
A.T.

I would need to look at your furnished home before I could advise you on which would be better. I'd rather advise you when I am in a position to accurately conclude which option would serve you best. My office is located in Snellville (30078)--I'd love to stop by at your earliest convenience to take a look--no obligation, please give me a call at 770 595-4144. I look forward to meeting you.
0 votes Thank Flag Link Tue Sep 1, 2009
Different areas have different customs and norms. So, if it's not uncommon in Snellville for homes to be sold furnished, the advice below sounds excellent.

But if it's not all that common, I'd strongly advise against it. As at least one comment below noted, the buyer's taste may not match yours. Further, in general, read some of the threads on home staging. While you want the house to not look vacant, you want to neutralize it as much as possible. And even in an occupied home, staging often means removing items of furniture, and bringing in others (or at least accessories). So the process you go through to make your home look its best is not overly condusive to selling a home furnished. And, finally, many of the buyers I've seen really wouldn't find it appealing to sit on the same couch, sleep in the same bed, etc., as other people did.

But, like I said, if it's done where you live and people accept that, then just follow the advice below.

Hope that helps.
0 votes Thank Flag Link Thu Apr 17, 2008
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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A.T.,
You can sell your furniture with your home, but a few things you have to watch for, and especially so now with mortgages being how they are. This was stated, but I didn't see the specific reason, so here goes:

You need to do a Personal Property Bill of Sale addendum and list each specific item with a $0 value associated with it. Lot of work, but may be worth it. The reason for this is that if it shows up in the contract, the mortgage company will think part of the price is the furniture. They loan on homes, not furniture, so will assign a value to each piece, and then subtract the total from the amount they were going to loan. I have seen this happen and it's a mess. Example:

Home goes under contract for $200,000. Furniture is on the contract, and the mortgage company sees it itemized and assigns the couch $500, the dining room table $1500, etc, and the total for the furniture is $20,000. The buyer was doing a conventional loan and putting down 20%. Now the loan is going to be for $180,000, and the buyer has to still put down 20%, or $36,000, plus they still have to pay the $20,000 for the furniture, so now the total out of pocket is $56,000 instead of just the $40,000.

Sorry for the long explanation, but this goes over a lot of heads. It did mine, until I saw it happen to a fellow agent that was representing the buyer.

Hope that helps. And Snellville is my stomping ground, I've been here for over 26 years, so am real familiar with the market and the area. Give me a call at 678-362-3138 and I'll be happy to look at your home and let you know my thoughts regarding selling it furnished. It can be done, just needs to be done carefully...
0 votes Thank Flag Link Thu Apr 17, 2008
If buyer's lender knows you're doing this he'll be all over it. List separately as the home has to appraise without the furniture items. Promote it as Home With Furnishings but price it separately so buyer's know their options. You could also have an auction for furnishings. You might do better depending on the quality of furnishings.
Web Reference: http://www.junelizotte.com
0 votes Thank Flag Link Mon Apr 7, 2008
Hi AT;

My clients just bought a house from a couple who were relocating and wanted to sell their furniture as well. They sellers listed all the furnitures for sale and the price for each, with note saying if anybody is interested in items not listed, those might be negotiable also.

We negotiated for the house separately from the negotiation for the furnitures; this allows us to make the right offer as well as credit for repairs for my clients independent of the others.

My clients ended up asking for something that's not listed; and the ones my clients did not take were sold in a garage sale or donated.

This allows my clients to bring in their own treasured furniture and only purchae the ones they like from the sellers and they don't need to dispose of anything from the sellers that they don't like. The sellers received good price for the funiture. I think it was a win-win situation.

Sylvia
0 votes Thank Flag Link Sun Apr 6, 2008
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
Contact
AT as for as prep yes you can prepare for negotiations. Use your personal property as chips. A buyer may or may not want your furnishings. They may only want some. So they will try to bring you down in price and take less of your furnishings. You can look at it one of two ways. Attach a value to your personal property and therefore you can add or subtract from the price based on what stays or not. Or you can attach no value and that takes it out of the negotiating phase.

Larry Story
Coldwell Banker Triad
0 votes Thank Flag Link Sun Apr 6, 2008
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