Don’t wait for the final walk-through before closing or escrow to discover
that the cool mid-century refrigerator in the garage is gone and you thought it was included in the purchase of your new home. Homebuyers and sellers should research what is reasonable to include or exclude in the sale of a home.
Removing fixtures or personal property before prospective buyers view your
home could defuse sticking points in negotiations later.
Decide early on whether or not the washer and dryer is included or excluded in your list price. Consider you could receive more than it’s replacement value from buyers because they dont have to bother picking out new ones or waiting for delivery and installation.
- Learn what is meant by the term exclusion.
An item that is not included with the sale of a home, which may be a fixture or personal property.
- Exclusions can become a deal killer if you don’t plan in advance on how to handle them.
- Understand that a fixture is any item permanently attached to the property.
- Investigate examples of fixtures that are typically included with the sale of a home; window blinds, shades and drapery hardware, built-in or attached shelving, ceiling fans, light fixtures, tacked down carpeting, planted vegetation, automatic garage door openers, central vacuum and equipment, security and invisible fence systems, well and septic pumps, water softeners, intercom systems, outdoor sheds, built-in gas grills, fireplace screens, gas logs and starters.
- Homeowners could feel their home shows better with exclusions in place. Buyers though, will only consider it a tease; the ever- present exclusion looks great in our home but you can’t have it at any price.
- Anticipate homebuyers to expect to include everything they see permanently attached during property showings of your home in a home purchase contract.
- Personal property is defined as items that are easily removed and not permanently attached to property.
- Research in your market which personal property items are typically not conveyed with the sale of a home, such as area rugs, draperies, furniture, mirrors hung as pictures, fireplace tools, draperies, patio furniture and outdoor play equipment.
- Anticipate that appliances such as refrigerators, dishwashers, stoves, microwave ovens, washer, dryers, wine coolers and window air-conditioning units could be negotiating points.
- The rule of thumb is to have no more than three exclusions, but less is more.
- List excluded items on listing sheets and contracts to purchase.
- Call attention to excluded items during home showings. Use signs on or near excluded items.
- Family heirlooms as exclusions should be removed before showings. It’s difficult for buyers to fall out of love with your grandmother’s Tiffany style light over the breakfast room table.
- If you have exclusions, research and document replacement costs. Replacement costs should include the cost of a new fixture and labor to install it.
- Replace chandeliers, relocate peony bushes to a relative’s garden and dismantle an above ground pool that you plan to take before you list your home for sale.
- Disclose to buyers that your security system or cable box is leased.
- After agreeing on all the major points of a contract, don’t create adversity by getting stuck on the buyers estimate to replace and install a new ceiling light fixture for an excluded one that you should have replaced before showings.
- Be objective when negotiating exclusion or a personal properties value. Consider the ratio between the item value and the contract price of the property.
- Buyers who have survived contentious exclusion negotiations could retaliate later on home inspection issues.
- Suggest during difficult personal property negotiations to return later to the unresolved issue. Time can diffuse issues in an otherwise amicable purchase contract.
- Hire an attorney to draft purchase contracts and personal property addendums. An addendum is an addition to a contract.
- Buyers should develop early on a checklist of all contractual inclusions to verify that have been left by sellers at final walk-through.
- Operate all appliances and light fixtures at final walk-through that are included in your contract. Request manuals and service agreements for appliances, furnaces, hot water heaters, gas fireplaces, central air conditioners, heat exchangers, electronic air cleaners, pool pumps and heaters, sump, well and septic pumps.
- Locate automatic garage door openers and remote controls for ceiling fans and display at final walk through by buyers.
- Remember to keep focused on your goal: buying or selling a home.
