Should You Sell Your Palm Desert Home With the Furniture Included?
Selling a furnished Palm Desert home can appeal to seasonal residents, second-home buyers, and owners looking for an easy move; in none of these scenarios does the furniture add value to the sale price.
Keep reading to see whether selling your Palm Desert home with all the furniture included is worth the bang for your buck.
Why Are Furnished Properties Common in Palm Desert?
Palm Desert attracts seasonal buyers, second-home buyers, and those seeking a minimal-effort home. Furnished and/or turnkey homes are common enough to have a specific niche within the region. The furnishings are especially appealing within condos, country club developments, and homes only utilized seasonally. The buyer may seek convenience from not having to furnish their second residence from another state.
What Furnished Sale Candidates Are Effective?
A furnished sale is most effective when the furnishings complement the home, including coordinated pieces, appropriately sized seating, and practical outdoor and bedroom furniture, aiding the imaginary move.
A mismatched collection of worn or overly personal items would yield a counter-impact, with buyers wondering about the square footage of the room or the removal costs they may endure. The buyer expects a staging of the home that is complete yet edited; the furnishings may not mean an allowance of clutter within the home.
Which Items Should Be Included With the Property?
The buyer can either be sold the turnkey home (entire), only the furnishings included, or may negotiate on a per-item basis. Most turnkey packages include beds, sofas, dining and patio seating, televisions, lamps, and basic kitchenware.
For photography and viewings, remove personal photos, sentimental artwork and documents, medications, garments, collectibles, and other family furnishings; the buyer must decide whether the include linens, dishes, electronics, grills, and accessories.
How Much Value Do the Furnishings Hold?
Furnishings rarely carry a value equal to the original cost, as a buyer appreciates the convenience but rarely pays the full MSRP of used goods. Quality-selected furnishings can enhance a home without increasing the dollar figure. Sellers should price their real property based on comparable sales in the local area. The value of any furnishings with a meaningful value should be negotiated separately with the help of their real estate, tax, and escrow professionals.
Could Inclusions Harm the Buyer’s Ability to Finance the Transaction?
Inclusions such as furnishings are personal property, not part of the real estate. A lender and appraiser may view the furnishings allowance or other included purchases as a sales concession. Fannie Mae requires an appraisal to account for any concession in the transaction so the real estate valuation reflects the sale without the additional items included. If a buyer’s lender wants to finance the deal, it is best to have the professionals review the transaction early. A separate bill of sale or properly documented allowance would be necessary for the furniture, as per the transaction and advisors’ recommendations.
What Are the Standards for Staging the Furniture?
Each item listed shall be cleaned and appropriate to the room. Move-in-friendly homes avoid large pieces that impede the flow of the home; repair broken pieces and replace used bedding and porch cushions. The outdoor furnishings receive particular attention as the constant exposure of the sun may damage the items in the long run. The listing shall specify if the home is completely furnished, partially, turnkey, or fully furnished, or if furnishings are available separately from the real estate purchase. Language should not permit assumptions by the buyers upon their review of the listing picture(s).
What Should the Agreement Contain Concerning the Inclusions?
The agreement for the sale shall specify a written inventory of the personal property included within the sale. Descriptions of the inclusions shall sufficiently name items that are included within the price and separate them from the items not included or those not discussed.
If a television, dining and patio set, or the kitchen appliances will remain with the sale, the parties shall identify these items individually. The parties must also decide if the items are transferred in condition, if a replacement of the item must occur during the closing, and when the ownership of the items is transferred to the buyers; the furnishings shall never be an informal discussion matter.
“Furniture can provide a more desirable Palm Desert home that meets the lifestyle desired by buyers. The objective is to offer convenience without attaching an MSRP to every chair, while ensuring the value of the home and the property contained is correctly documented by the professionals.”–Ron Saporito, Chief Executive Officer & Broker / Owner
Should a Home Be Sold Furnished?
Affirmative if the home is nicely furnished with items appropriate to the room within. Furnishings may also help a buyer if they are appealing and the buyer expects to move into the residence for the season or as a second home. It would be less effective if the furnishings are outdated, or if the seller seeks a premium for the value of the furniture itself, or if most likely buyers would occupy the home on a permanent basis with their own items.
The real estate professionals can assist by selling the furniture separately by negotiated agreement, providing a specific cost for the buyer to understand, while the real estate transaction price remains clear-cut.
How to Ensure an Easy Sale
A thoughtfully furnished Palm Desert home provides actual convenience and a unique opportunity for buyers. The most effective strategy is to price the house appropriately for the real estate while enticing buyers with the furniture and documenting every piece before closing. Reach out to the professionals at Ronald Christopher & Associates if you are interested in selling your Palm Desert home with furniture included!
Buyer Inquiries About the Furnished Palm Desert
Q: Will the furniture come with a warranty?
A: Furniture typically comes included in the furnishings sale, but usually without a separate warranty, as the items are used and sold in their current condition. The buyer is encouraged to check the furniture themselves during the final walk-through of the home to confirm the item(s) were left in the home in the condition described in the listing. Other arrangements must be noted in writing.
Q: Can a buyer ask the seller to clear unwanted furniture?
A: The buyer may request removals from the seller upon the agreement of both. The contract must list the items that must remain so the furniture does not become the buyer’s property when they did not expect to receive it.
Q: Is furniture subject to an inspection?
A: A standard home inspection addresses the general state and systems of the house rather than evaluating any home furnishings included within the sale. In-person inspection of furnishings and testing of electronics or adjustable pieces is recommended for the buyer.
Q: Can the buyer purchase the furniture separately after the final acceptance of the offer?
A: Yes, the parties may separately negotiate the offer and furnishings within the limitations of the lender and escrow representatives. The agreement must have written documentation and be disclosed to the lender as required. However, a side deal can create financeability issues.