Move-in ready homes, particularly in the higher end of the market, are especially appealing to buyers.
Demand Remains Strong in October
With one-third of all homes selling within one or two weeks during the beginnings of October, according to Redfin, demand for residential real estate remains strong.
Especially in higher end and second-home markets, demand is even stronger for move-in ready homes. Due to pandemic-caused supply chain disruptions, buyers don’t want to wait around for building supplies, appliances or furniture. They also don’t want to be on miles-long waiting lists for builders and sub-contractors. They want to buy now so they can either move in now or rent now.
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Buyers Want to “Buy What They See”
According to Alex Martinez, a broker with The Agency in Washington DC, “For many luxury buyers, they have the funds readily available, they’re doing cash transactions, and they want to buy what they see.” Martinez added that the same is true for vacation home buyers who plan to rent out the property as soon as possible.
Edgardo Defortuna, CEO and founder of Fortune International Group in Miami said that buyers buying in new developments are willing to pay premiums on units that come fully furnished and finished. “Sure,” said Defortuna, “Prices significantly increase when units are furnished but people are buying them.”
Tips to Sellers Considering Selling ‘Everything’
Even though sellers of fully furnished, ready-to-go properties have an edge over sellers with properties that require “more effort,” sellers have to consider whether or not it pays for them to include everything in one transaction.
Most professionals suggest keeping property and furnishings sales separate. Why? Selling everything at once can complicate listings as well as financings.
“(Selling everything together) tends to muddy the waters – we’re not selling furniture, we’re selling real estate (even though) this is coming up with buyers more and more,” said Michael J. Franco, a broker with Compass in New York.
Determine how much of the furnishings buyers want. Some buyers want everything, down to the forks and knives, and some buyers want to customize for themselves what level of move-in ready they want. Either agents to agents or sellers to buyers need to talk directly about this.
Also, particularly if/when the furnishings have been custom-made for the property, sellers and buyers need to figure out what makes sense in terms of pricing and efforts/timing required to replace everything.
Keep Property and Furnishings Transactions Separate
The best strategy for both the seller and buyer – keep any sale of furnishings outside of the property transaction – they are separate negotiations. In terms of listings information about furniture, a simple remark on the listing that indicates furniture “may be offered” says more than enough.
Thanks to MansionGlobal.
