Can You Buy a House With Furniture Included?

It is possible to acquire a house with its furnishings, though this is not a standard inclusion in most real estate transactions. This arrangement involves including personal property, such as furniture, along with the real estate itself. Such a purchase requires specific considerations and formal agreements for both the buyer and seller.

Negotiating for Furniture

Expressing interest in a home’s furniture can begin early in the buying process, often during initial showings. Buyers can inform their real estate agent of their desire to include specific pieces, which can then be incorporated into the offer. This allows for a direct discussion about desired items. Sellers may consider including items to simplify their moving process.

Items considered for inclusion range from major appliances like refrigerators and washers to movable furniture such as sofas, dining sets, and decorative items. Built-in shelving or attached light fixtures are usually considered fixtures and remain with the property, but freestanding furniture is distinct. Buyers should be precise about which items they wish to acquire, as a general request for “all furniture” can lead to misunderstandings. Discussing furniture inclusion before submitting a formal offer, or as a condition within the offer, provides a clear framework for negotiations. Real estate agents facilitate these discussions, helping determine fair pricing by considering the furniture’s age, condition, and market value.

Formalizing the Agreement

Once an agreement is reached regarding furniture, formalizing it legally is an important step in the home sale process. Personal property is distinct from real estate, so its inclusion must be clearly documented. A common method involves using a “Personal Property Addendum” or “Non-Realty Items Addendum” to the main purchase agreement. This document explicitly outlines any personal property included in the sale.

The addendum should contain a detailed, itemized list of all included furniture, specifying the condition of each piece. For instance, if appliances are included, their make, model, and condition should be clearly noted. Another option is to use a separate “Bill of Sale” for the personal property. This document records the sale and transfer of ownership for movable items, providing proof of purchase.

Having these documents reviewed by legal professionals, such as a real estate attorney, or by experienced real estate agents, can help prevent future disputes and ensure legal compliance. Failure to properly formalize the agreement can lead to disagreements after closing regarding ownership.

Understanding Financial and Practical Aspects

Including furniture in a home purchase introduces several financial and logistical considerations. Lenders typically do not finance personal property; mortgages are secured by the real estate itself. If furniture is included in the main purchase contract, the mortgage lender may subtract the value of the personal property from the overall purchase price when calculating the loan-to-value ratio. The financed portion will only reflect the real property’s value, potentially requiring the buyer to pay for the furniture separately at closing. Appraisals for home loans primarily focus on the real property, and including personal items in the main contract can complicate this valuation.

Minor tax implications can also arise. Sales tax is generally not due on personal property transferred as an incidental part of a real estate sale, especially if no separate value is assigned to the items. However, if personal property items are separately itemized and valued in the contract or a separate bill of sale, sales tax may apply in some jurisdictions. Practically, buyers should verify the condition of all included items before closing, potentially through a final walk-through with photographs to document their state. Creating a comprehensive inventory is also valuable for insurance purposes, as personal property insurance (Coverage C) covers movable items within the home, distinct from the dwelling coverage for the structure. Buyers should avoid making large credit purchases, such as new furniture, prior to closing on their mortgage, as this can negatively impact their debt-to-income ratio and credit score, potentially jeopardizing loan approval.