Sometimes, sellers want to sell the property with everything in it. Other times, a buyer might want to include some of the furniture in the sale. Selling furnished real estate is something many buyers and sellers will come across when purchasing real estate.

It happens more often than you think, especially in Florida. With relocations, second home buyers, and retirees, many parties want the furniture included in the sale.

There are many factors that need to be considered if a property is being sold furnished.

  1. Most people will use the photos on the MLS for what the property could include. Listing photos are a documented record of what is in the property. So, if you do not want something included in the sale, you should remove it before the photos are taken.
  2. Many times, people will fall in love with something in the property. Then the buyer finds out that the item is not included. It could turn into a difficult discussion between the parties if it is not made clear that something is not included. If something is in the listing photos and will be viewed when a buyer sees the property, but is not included in the sale, it needs to be made known right from the start. One, it should be noted in the broker’s remarks if an item is not included. Two, put a note on the item saying, “Not included with sale.” Then a buyer is aware of that when viewing the property. Three, tell the agent or buyer during the showing that an item (such as a chandelier) will not be included. Four, make sure it is documented in the contract that the item is not included in the sale.
  3. If a buyer is getting a mortgage, it is important to check with the buyer’s lender about the furnished information before you write the contract. Most lenders do not want furnished items on the real estate sales contract. Why? If furniture and extra items are included on the sales contract, the appraiser will have to take those into account when doing the appraisal on the property. This will complicate the appraisal since the extra items will have to be valued.
  4. Creating a separate document is the best way to include furnished items. Each item that is included is listed on the separate page. This is the best way to avoid confusion. Examples of items you would include on the list: couches, tables, chairs, patio furniture, artwork, plants, kitchenware, and so on. The more detailed the list, the better.
  5. It is most beneficial to buyer and seller if the furnished items are included in the sale, rather than assigning a value to it. If there is a value or price assigned to the items, then sales tax has to be paid on the furnished list.

It is important to be very clear what is and what is not included when selling furnished real estate,

My seller was selling a million dollar property with over $30,000 in furniture included. As we were getting closer to the closing, she mentioned that she needed to take a few items from the property. She was going to take a small pottery piece from one of the bathrooms and 2 pictures her friend drew. These items were worthless to anyone else, but sentimental to her. The buyer’s agent gave us an incredibly hard time about taking those items. In further discussions with my seller, she explained that the pottery was an urn with her deceased brother’s ashes! I pushed the buyer’s agent, and my seller was able to take the few items she asked for.

This is a helpful story when discussing selling furnished real estate, because often times if a buyer sees something and assumes it is included in the sale, it will be more difficult to remove the item from the deal.

Happy real estate shopping!