A furnished home is any house that is sold with any type of personal property. Furnished properties can come in the form of model homes, turnkey properties, and personal homes.
Model homes are completely furnished, and are sometimes sold complete with the furnishings and décor once the majority of the lots in the given community have been sold. They are often beautifully done-up from floor to ceiling and have lots of extra goodies and amenities.
The term “turnkey” in the real estate world refers to a property that is move-in ready and has everything including dishes, towels, sheets, etc. These are popular in areas known for vacation properties.
This is your typical, personal home for sale that includes furnishings. These are the seller’s own personal items and can include as little as the essentials (bed, dining table, etc.) to every last knick-knack.
According to the New York Times, the sale of furniture is typically a separate transaction from the real estate sale. Think about it: the bank isn’t going to want to bundle personal property into your home loan.
In most cases, a typical contract states that any furniture is included with no warranty and at no additional cost. If the sellers do indeed deem the furnishings valuable, they will arrange a separate transaction with the buyer. Often, they will offer two prices for the home: one furnished and one unfurnished.
For those interested in purchasing furnished homes, especially part-timers, second-home buyers, and vacation-home buyers, the interior décor is broken out as a separate transaction with the furniture being itemized in the appraisal. Each item must be documented, inventoried, and included in the term sheet and bill of sale.
There are numerous pros and cons of buying a furnished home. Let’s take a closer look at why this is ideal for some folks and a total headache for others.
Is perfect for first time home buyers and former renters who don’t have a lot of furniture to being with.
Buyers might be paying too much for the furnishings. Like an emotional seller that overprices a home, a seller with an emotional attachment to the furniture may overvalue it.
The most important thing to think about when considering purchasing a furnished home is this: will the extra money you’ll be spending be worth the time and hassle you’ll be saving? After all, rarely does the furniture add any real value to the property. Make sure you thoroughly assess what is being offered and to calculate if the asking amount is reasonable. If it is and you’re not too attached to the furniture you already own, go for it! A home offered move-in ready may be your stress-reducing blessing in disguise.