Skip exclusion confusion when buying, selling home

By Mark Nash

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. You remember: the one you thought was included in the purchase of your new home. Home buyers 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 if the washer and dryer is included or excluded in your list price. Consider that you could receive more than its replacement value from a buyer just because they don't have to bother picking out new ones or wait for delivery and installation. Here are some tips for sellers who must decide what to take and what to leave. Learn what is meant by the term exclusion. It's an item, either a fixture or personal property, that is not included with the sale of a home. 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. Fixtures that are typically included with the sale of a home are: 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 vacuums and equipment, security and invisible fence systems, well and septic pumps, water softeners, intercom systems, outdoor sheds, built-in gas grills, fireplace screens and gas logs and starters. Owners might feel that their home shows better with excluded items, such as window blinds or the like, left in place. Buyers though, will only consider it a tease: The ever-present exclusion looks great in your home, but I can't have it at any price. Anticipate that home buyers will expect everything they see permanently attached to your home during property showings to be included in a home purchase contract. Personal property is defined as items that are easily removed and not permanently attached to property. Sellers should research which personal property items typically are not conveyed with the sale of a home in their market, such as area rugs, draperies, furniture, mirrors hung as pictures, fireplace tools, draperies, patio furniture and outdoor play equipment. Anticipate which 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. Before you list your home for sale, replace chandeliers, relocate peony bushes to a relative's garden and dismantle an aboveground pool that you plan to take with you. 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 buyer's 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 exclusions or a personal item's 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 during 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. Early on, buyers should develop a checklist of all contractual inclusions to verify items 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, pool heaters and sump, septic and pumps. Locate automatic garage door openers and remote controls for ceiling fans and display at final walk-through. Remember to keep focused on your goal: buying or selling a home. Content That WorksMark Nash, author of "1001 Tips for Buying and Selling a Home" (South-Western, 2005), is a well-seasoned real estate professional specializing in helping others succeed in real estate.