Buy a House Furnish it and re-sell? - Posted by Patty


Posted by ken in sc on January 20, 2003 at 07:08:59:

That pools, jacuzzis and the like become RE when added to the property. They are built in and become what appraisers call real property. In the event of a foreclosure, the bank would get the pool, too. Dishes, towels, furniture never become RE.


Buy a House Furnish it and re-sell? - Posted by Patty

Posted by Patty on January 19, 2003 at 14:51:45:

Ok the house next door to me sold in September and shortly after A Semi from Ashley Furniture shows up. I also notice cars in the drive way that say New Homes Network. Now I only see the cars once in awhile and I’m thinking no one is living in this house. So yesterday I go to Ashley Furniture and buy a Dinette and Bar Stools and as I am paying I tell the girl about this Truck showing up at this house and she tells me this company buys houses furnishes them and re-sells. So I come home and pull up MLS and YEP they bought this house for 335K put a 80% LTV (Hence no PMI) on it and Furnish it down to the Dishes and Linens and put it back on the market for $425K They are the Listing Agent as well. Its been back on the Market since 01/11/03 why they just listed it I don’t know what took so long.

So what do you guys think of this approach and how does it relate to Flipping in the Lenders eyes. So I figure you guys could buy used furniture put it in a house and the Lender will say its worth 90k more??? No flipping issue.

Just thought I would share this as it got my Investigative/Creative thoughts flowing.

Also Ashley has No interest until 2006 so I’m sure they financed the furniture, I paid cash and am kicking myself for not asking for a discount for doing so. Oh well to late now.



IT WORKS: Buy a House Furnish it and re-sell? - Posted by Xbroker_Ashley

Posted by Xbroker_Ashley on January 20, 2003 at 16:16:02:

I’m not sure if this New Homes Network has any connection with the people at but this is one of the things they teach to increase demand on a home.

Somehow these items …ie…furniture, owner financing, other goodies, etc… get introduced to the buyers as part of their selling program. Buyers then get to choose what they want or need.

All interested buyers get invited to an open house to bid up the sale price. The entire process takes 15 days.

I’ll try this the next time I sell.



Re: Buy a House Furnish it and re-sell? - Posted by Al Nagy

Posted by Al Nagy on January 20, 2003 at 14:39:39:

For what it’s worth, how about a couple of home made catalogues, with several couches, dining and kitchen tables, bedroom sets, appliances to be offered to a buyer to “pick and choose” their own items? These could then be worked into the price of the house.
The buyer could get several thousand dollar’s worth of furnishings at low mortgage rates.


Specific Niche - Posted by Carmen_FL

Posted by Carmen_FL on January 20, 2003 at 10:58:16:

These guys are more than likely working a specific niche market. If the house itself can appraise for $425,000, then there will be no problem. I do think that appraising is an “art”, not a “science”, and as long as you stay within reasonable boundaries, you can get the number you ask for.

They probably waited almost 6 months so that most banks wouldn’t consider it a “flip”. They could also be working with several relocation departments in big companies, who work specifically with executives, etc. to find them a place to live, maybe for a few years only. Especially foreign individuals. I have worked with these executives, and they don’t want to lug their furniture over from Europe or Latin America for a couple of years … but would rather buy than rent (for the appreciation, dollar-based investment, etc.) So they store their furniture, and buy new stuff here, and sell it again when they move back. If these guys could find a “turnkey” house, they’d jump at the chance!

So, assuming you are only looking for a specific type of buyer (and if Joe Blow off the street walks in and LOVES it, so much the better for you), it could be a good niche.

It may also be a good idea for another reason: many people, when they move, don’t have enough money to buy new furniture, but they would if they could since their “stuff” won’t fit in so well (especially first-time-homebuyers, divorcees who had to split what they already owned, etc). So, if you sell them a “fully furnished” house, which is, technically, financed by the bank … all costs included in their mortgage payments, with no more out-of-pocket expenses … I can see where this would be appealing! In S. Florida, it’s often the case that retirement homes are sold furnished. Me, personally, although I’m supposed to be an “emotional woman”, I’m not attached to my furniture; nor am I a “home decorator”. So, if I have a chance to buy a fully furnished, decorated “model” home … I’d jump at it over a blank-walled empty house (all other things being equal) … and would even pay more for it! So, where there’s a niche, there’s a profit to be made.


Re: Buy a House Furnish it and re-sell? - Posted by michaela-ATL

Posted by michaela-ATL on January 20, 2003 at 08:29:41:

A house is really an emotional purchase. People usually have some kind of emotional reacton to it and that’s why they buy it. Yes, there are some realistic criteria, that have to be considered, like number of bedrooms and baths, price, etc. But within those parameters, it’s a gut reaction, that will usually sell a house. I’m sure you’ve all heard the saying:" if a couple buys a house, it’s the woman that buys the house and it’s the man, that does the financing.’ meaning, : if the woman (who’s usually more emotional) likes the house and they can afford it and it’s structurally ok, they’ll get it. If the woman doesn’t like the house, they won’t get it, even if everything else may fit.

With that said, i believe the furnishings help bring out emotions, that an empty house can’t, subsequently, if it’s furnished right, the house will sell faster and possibly at a higher price. Not a price, that can’t appraise, but maybe pushing the market a little and getting full price, which is money in the bank.

A lot of rehabbers and builders try to stay neutral, use white or off-white walls, try to appeal to the highest common denominator etc. Thinking, this way the buyer can imagine it the way they want it. The problem is, that most people don’t have a lot of imagination. Yet, i see more and more houses being renovated with designer colors and they usually sell faster than the neutral one.

I believe, if you are willing to ‘take a risk’ and renovate,decorate or furnish a house to appeal to a buyer’s emotion, then you’re more likely to get a higher price than, if you keep it completely neutral to appeal to a buyer’s sense of imagination.

just my thoughts



How about this idea - Posted by Bill

Posted by Bill on January 19, 2003 at 22:53:05:

Could it be that the seller is willing to carry part of the price as a second mortgage and possibly sell this second at discount?
What if they carried say, 90K as a second? Then discounted the note and sold it for say, 60K? Would that 60k note then be secured by real estate or by furniture?
What if they further took used rental furniture that was still in excellent shape, but that had been depreciated fully and used this to furnish the house?
Wouldn’t they then effectively have taken just a few thousand dollars worth of used furniture and turned it into 60K?
Do you suppose that this would be a good return on their money?
What if they used investors to finance this and paid them say, 12 percent on a yearly basis? Let’s see, 12 percent on 10K worth of furniture a year is 1200.00. A 60K profit on the note less the 1200.00 leaves 58,800, less the 10K for the furniture payoff, even if it takes a year.
If I were you, I’d check this out real carefully. There might be an interesting way to make some money here.


Re: Buy a House Furnish it and re-sell? - Posted by Andre

Posted by Andre on January 19, 2003 at 19:52:31:

Actually, depending on the area, that could be a really good idea. They are probably counting on some high level (highly paid) executives that are looking for a turn key solution. The plop down the $$$, bring their clothes and show up.

I’ve also found that there are many companies out that that perform a service called “staging”. They fill it with furniture down to the last detail, so that it looks lived in. May people say that it can be tough to sell an empty house. Look how model home in new communites are decked out to the nines… so that prospective buyers can imagine what it will look like.



Re: not so fast Phil? - Posted by Christen

Posted by Christen on January 19, 2003 at 19:05:54:

On an appraisal I just got back, I was reading through it and it had that the house came with a washer and dryer and that the appraiser felt it added no $ value to the home. However I am sure that if a house came furnished with brand new furniture it would add quite a bit of value to the home. So their is actually a place on the appraisal report for this kind of info. I’d call an appraiser and ask . I wonder what type of people they are marketing the house to. Military or something?

You know it used to be that when you got married you got everyhing from linens to blenders to your bedroom set. with so many people living together that aren’t married, fiance, boyfriend, life partner whatever you might go from your parents house, a college dorm or a small studio and not have much. You may be onto something.


Re: Buy a House Furnish it and re-sell? - Posted by phil fernandez

Posted by phil fernandez on January 19, 2003 at 16:55:42:

A couple of problems I see with this approach. One, the bank finances real estate. They aren’t going to finance the dishes, linens and so forth. Those items are personnal property.

And related to the above, the appraiser is also just going to appraise the real estate, not the personal property. Most people have their own tastes and probably already have their dishes, linens, furniture etc. So a buyer won’t pay more for these items in most cases.

But that was a good thought on your part. Keep up the creative thinking.


Not Quite Buy a House Furnish it and re-sell? - Posted by Dave

Posted by Dave on January 21, 2003 at 24:24:02:

Who told you that the No discount program is about furnishing homes?

I’ve never had to put up money to close deals on furnished homes. Everything has always come out of the profit from the sale.

New homes network seems to focus on a niche where No Discount is about getting buyers emotionally charged to pay top price. It’s kinda like giving $1 to get back $5.


Ken SC Are You Out There - Posted by phil fernandez

Posted by phil fernandez on January 19, 2003 at 20:12:54:

Remember that banks usually package and sell these mortgages they originate to other outfits. And alot of these mortgages are backed by HUD, VA etc. I can’t imagine HUD saying we’ll insure the mortgage on linens and dishes. They just want to insure the real estate.

As you mentioned on your recent appraisal, the appraiser did not put any increased value on the washer and dryer. So I can’t believe they would consider value for the dishes, linens and furniture. Perhaps Ken SC will see this post and put his 2 cents worth in. Ken is an appraiser.


Re: Ken SC Are You Out There - Posted by ken in sc

Posted by ken in sc on January 20, 2003 at 07:05:45:

Yes, we all know that selling the washer and dryer with the house adds value. I just sold mine with my personal residence and the buyers really wanted them, and paid me full list price for the house!

Now, to answer why the appraiser wrote “no value”. The answer is the lender asked him too. I get asked to write such statements all the time for refrigerators, window treatmnts, etc. Anytime there is something in the contract that is not RE. Like you said Phil, the lender wants to loan on RE only. Items that are not RE should have a seperate bill of sale so everyone will know what is going on.

I would not pursue this avenue in my area. Most people own dishes, towels, w/d, etc, or want to pick their own.



Re: Ken SC Are You Out There - Posted by Christen

Posted by Christen on January 19, 2003 at 20:27:06:

OK I get that banks finance real esate already, I think we all understand that. But there are a great many things that can increase the value of the real estate for example a pool, or jacuzzi and banks don’t finance pools last time I checked. and by the way the appliances were old and we threw them out. They really were of no value. It may not bring the value way up there but it may make the house incredibly marketable and far more desireable, which can be priceless.


Sometimes you will get fully furnished awesome house with water fountain all facilities and so many or they will suggest best furniture showrooms where you will get customize furniture.