Buying of Selling Crested Butte Home “Fully Furnished”
Whether working with a Buyer or Seller I am often Asked What does “Fully Furnished” mean? What is Included? What is Excluded? The answer – it depends and it is best to define this as detailed as possible sooner vs. later for all involved.
Second Homes in Crested Butte are typically sold with “Fully Furnished” because:
- The Seller does not have a use for the furniture or furnishings in another home
– Most second homeowners who are Sellers in Crested Butte are not moving to another “mountain home” either here in Crested Butte or in another mountain town.
- There is little or no value to the Seller for the furniture and furnishings – it may actually cost the seller money to move it and sell it.
- Most Sellers are in another and don’t want to come to Crested Butte to collect a bunch of stuff they are never going to use again.
- If there is little or no value for the furniture and furnishings And the inclusion of these items makes it easy for a Buyer and may provide an attractive offering compared to other listings – Then the Seller is wise to include the furniture and furnishings as a part of the Listing.
Appliances – in general if it is affixed to the home then it is a fixture (stove, range top, built in microwave, dishwasher), but it is not affixed then it may not be included – Washer and Dryer, Refrigerator, 60″ Flat Screen TV… it is best to list these items as well.
Furnishings, Decor, Stuff – What about Pots and pans? Do the snow shovels stay? What does “all electronics” mean? Artwork? Outdoor furniture? Window Coverings? These are all good questions – and they will need an answer which typically comes in the form of an Exclusion List (the items that do not go with the house) or an Inclusion List (the items that do go with the house). Which one to use – a good rule of thumb is whichever list is smaller.
Staging – In Metro Real Estate markets it is common for homes to be “staged” because homes that are nicely decorated provide a good look and feel for Buyers. It is very unusual in the Crested Butte Real Estate Market for a home to be staged because there are no local companies that provide this service (some of the furniture stores in the area may have excess inventory and will provide the furniture and furnishings to be installed – and sold with the home for a price). Many second homeowners who are selling their home furnished and have items they WILL Exclude want to keep them in the home so that when they visit they have the benefit of those items. This is understandable – and also problematic. Most Buyers will notice the painting of the Crested Butte landscape painted by renowned local artist Shaun Horn that is hung above the fireplace – and they will write an offer with the condition that the Shaun Horn painting WILL be Included. When emotion enters the negotiations there is usually problems. It is better to define up front what is included or excluded so the problem is avoided – or it is Best to REMOVE the item altogether from the home – a Buyer cannot want something they cannot see.
How much does it cost to furnish a home in Crested Butte? This depends on the tastes of the homeowner, the size of the home and the value of the items when purchased. It also depends on whether you are only adding furniture and furnishings – or if you painting (faux finish), adding window coverings, are changing out lighting, replacing carpet or adding hardwood floors, replacing bathroom fixtures or fully remodeling bathrooms? Many second homeowners and many owners of Luxury Homes in Crested Butte will seek the help of local interior design shops to get help on the look and feel and turning a house into a true Crested Butte Mountain Home. Look no further than downtown Crested Butte to find some very qualified help at either Ansley Interiors or Interior Visions.
What is reality? Some Sellers will remember that they spent $100,000 to furnish their second home 10 years ago and they will hope to get their money back when they sell their second home – they will not. Is a leather couch purchased 10 years ago at a cost of 10,000 still worth that today? – No. What if it was a light blue leather couch? – definitely No. There is no secondary market here in the Crested Butte area for the Seller to sell their furniture. If you are selling 10 year old furniture it is probably worth 10 – 20 cents on the dollar of what it was purchased for. Most Buyers won’t like the furniture that is in the second home – and they will put very little value on the furniture and furnishings. The response is typically “well, it will work until we figure out what we want to replace it with”. The reality is there is some value to the Buyer because if the home has furniture and furnishings – then the Buyer does not have out of pocket costs for these items.
What about Lenders? Lenders do not want to loan money for the purchase of furniture and furnishings. Lenders want to loan money to Buyers to buy tangible Real Estate. Those items that can be removed easily from the home – may be removed. If a bank has to take a property back – it is important that the value of the loan is representative of the value of the real estate. In the 2011 – 2012 timeframe we had 43% of our real estate transactions here in Crested Butte that were either foreclosures or short-sales and banks were very much involved. It is best to ensure that the Contract to Buy and Sell specifically excludes the furniture and furnishings from the contract and these items will be purchased via a bill of sale outside of closing – and/or the contract states that any items left in the home have $0 value.
The devil is in the details – I pride myself on helping clients and protecting their interests – it is easy to forget items that were in the home that were keepsakes or family heirlooms, most times the Buyer could care less about a specific item – but better to be safe than sorry. It is not uncommon for me to help inventory and photograph every item that is on the list to ensure there is no mistakes made. It is best to define the terms of any real estate property for sale up front, and to be as detailed as possible when negotiating terms in a Contract to Buy and Sell Real Estate in the Crested Butte area.
How can I help you? This article and the level of detail is representative of the many ins and outs of a real estate transaction in Crested Butte – and what you can expect from me as your Real Estate Agent. If you are interested in finding out what your existing property is worth, or considering me to represent you as a Buyer, I would appreciate the opportunity to earn your business (or that of a friend you think I could help).
Author: Chris Kopf