Selling a Turnkey Home: 5 Ways to Get the Best Deal

You put your staged home on the market, and a potential buyer asked if you would be willing to sell the home turnkey. This is an offer that could be a boon or a bust for you financially, so you should make the decision carefully.

Selling a turnkey home may be a bit more complicated than a traditional sale, since it often involves the sale of all possessions in the home as well as the structure and property.

Here's how to determine that you are getting a good deal before you agree to a turnkey offer.

1. Know Your Terms

Before you get involved in negotiations, you should take the time to confirm that you really understand what the buyer wants. The basic definition of a turnkey home is that it is move-in ready. If that seems terribly vague and subjective, that is because it is. One person’s definition of “ready to move in” may not perfectly overlap with other views. Definitions of turnkey may include:

• all aspects of construction are complete
• furnishings, particularly furniture and appliances are included
• necessary repairs brought up by the home inspection are completed

The buyer’s offer could involve any of these or all three (and sometimes even more) to some degree. Ask for clarification on anything that seems unclear. This way you'll know which expenses you will be expected to cover, and which items you will be allowed to keep if you accept the offer.

2. Consider the Buyer’s Intent

There are a few different reasons that buyers may want to purchase your home fully furnished. Some people are purchasing a vacation home and do not want to go to the hassle or expense to select furniture and décor to match it. Others are hoping to turn the house into rental property as quickly as possible. The fewer upgrades and improvements they have to do after they buy, the sooner they may be able to occupy the home with tenants.

Investors are more likely to understand that a turnkey property usually lists higher. However, if you did not anticipate selling the home turnkey, you may not list it at a price designed to accommodate the additional furnishings you would sell.

3. Balance Your Investment

Sellers who do not go into the home selling process intending for the home to be turnkey may be at a disadvantage. This is where your real estate agent’s expertise can really come in quite handy. A turnkey offer could be as much as 30 percent higher than the list price, particularly if you have a lot of high-end technological equipment, expensive decorations or antique furniture.

However, studies show that turnkey offers often are not much higher than non-turnkey offers. Take the appraised value of your possessions and compare it to the buyer’s offer over the listing price. If the home is professionally staged and you do not own most of the furnishings, factor in the cost of purchasing them from the staging company.

Fortunately, many staging consultants will provide a price list of items for purchase when they stage your home.

Again, it is important to see what your real estate agent thinks about the situation to get a grasp of whether or not decisions being made will ultimately hurt or help you when compared to making a more traditional sale.

4. Be Realistic About Your Selling Options

The recent housing crisis has left a lot of sellers feeling somewhat gun-shy about their prospects. If you tried to sell a home during those years, you might be afraid that this is the only offer you will get, and that you may need to take it. On the opposite end of the spectrum, some might be overconfident about their home’s prospects. The trick is to find a balance of skepticism and optimism.

On average, homes spend about 40-50 days on the market before they are sold - though this may change depending on your area and how competitively you have chosen to price the home. If your home was just listed, you may well have the ability to consider other offers as they come in. However, if your home has been on the market for some time, that might be an incentive to think about the turnkey offer. Your real estate agent will be able to understand your situation and the options you have available.

5. Accept the Best Offer

Since all offers you will receive may come with some degree of contingency, the onus is on you to determine which one is going to be the best for you.

Deciding to take a higher offer and funnel the extra money into the purchase of new furniture could be an excellent choice. On the other hand, other offers also have their own benefits. If you are considering more than one offer, be sure to balance out any extra money you might gain from the added hassle of making additional repairs before the sale is complete, or having to buy new furnishings for your next home.

Selling a turnkey home is a business for some enterprising people. When you are hoping to sell your own home, learning about the concept of turnkey homes can be both thrilling and intimidating. By working with your real estate agent, ensuring that you understand the buyer's specific terms, and confirming that this is the best offer for you, you can make a wise decision for your financial future!