It is not uncommon to find a completely furnished house on the market. This usually happens when the sellers are trying to move without dragging all their furniture along. Moving with a lot of large pieces of furniture is not always ideal, especially when you are moving long distances or overseas. Furniture that looked great in your condo may not work in a new home either due to size or style. The most logical thing seems to be to include it in the cost of your home, right? Well, experts say that selling your house furnished can complicate your deal and may even cost you more money!
Higher Prices May Cause Appraisal Inaccuracies
During a home appraisal, the appraiser will look at and compare the recent sale of properties in your neighborhood. Your home’s price is artificially inflated due to your furniture. The difference between the sale price and other homes in your neighborhood will lead to an inaccurate appraisal. No one wants to relocate with a bad appraisal.
Larger Sale Price, Larger Commission
It is common knowledge that realtors are paid a commission on the sale of your home. The more expensive your home is, the more commission they make. When you include furniture in the sale of your home, this adds a substantial amount to their commission. You should get money for your furniture, not your realtor! Instead of including your furniture in the price of your home, sell it before moving. Classified sites like Craigslist or local community groups on Facebook are a great place to start. If you don’t want to go through the trouble of listing your items, donate your items to a charity of your choice. Not only does this help people less fortunate, but you are also eligible for a deduction on your taxes.
You’ll Pay Capital Gains Because of Your Furniture
There is a lot of confusion when it comes to capital gains tax and the sale of your home. While we aren’t a CPA, Bekins Moving Solutions is happy to provide some basic information about capital gains tax and moving. If you are a single owner, you can make as much as $250,000 before having to pay capital gains tax on the sale of your home. If you’re married, you can make up to double that. If you go over your allotted capital gains because you are selling your home furnished, you may end up having to pay taxes when you could use that money for moving into your new home.
Buyers Want to Imagine Themselves in Your Home
While you may have exquisite taste in furniture, most buyers want an empty slate. They want to bring their style and character into a new home, rather than to think about the people who used to occupy it. There is, however, an exception. If you are selling your home as a vacation rental or short-term living arrangement, then a furnished home may be preferable. However, that is the rare exception to the rule. The majority of buyers aren’t interested in purchasing someone else’s furniture.
If you are selling your home and need assistance moving your furniture, contact Bekins Moving Solutions today. Call (877) 594-1187 for a free moving quote!