Health & Fitness
Does That Chaise Come With the House?
While it makes sense not to add on the expense of moving farmhouse furniture to a contemporary home, including furniture in the purchase price does complicate the deal say realty and tax experts.
It’s common to include furniture in the listing price, and while it may bring a quicker sale, it may end up costing the homeowner more in the end.
It makes sense not to add on the expense of moving farmhouse furniture to a contemporary home, but it complicates the deal say realty and tax experts. Here’s why:
You’ll pay more in agent commission. If you’re paying a 6 percent commission, you’ll owe the agents more if you throw in the furniture as part of the escrow process. Hold a garage or estate sale instead, or negotiate the furniture privately with your buyer.
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Having a higher price tag may mean a lower appraisal. Appraisers look at comparable recent sales of properties in your neighborhood to determine what yours is worth. If everyone else sold for less than your asking price, they won’t agree your house is worth more because it’s being sold furnished and that could jeopardize your buyer’s financing.
Your capital gains tax may kick in. You can make up to $250,000 in profit on the sale of your primary residence if you’re a single owner, double that if you’re married, without having to pay capital gains tax. If you exceed those amounts, you’ll have to pony up.
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There are exceptions to the no-furnishings rule, of course. Custom-built furnishings typically are included since they’re designed for that specific home and to replace them would be expensive.
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I live, work and play in Conejo Valley and specialize in Agoura Hills and Westlake Village real estate.
Where you live is more than a roof over your head. It should improve your quality of life – spiritually, emotionally and psychologically.
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