Understanding Built-Ins and Their Impact on Home Sales
Built-ins refer to items or structures that are permanently attached to a home. Examples of built-ins include appliances, fireplaces, attached garages, art niches, columns, domed ceilings, and other structural enhancements.
Examples of Built-Ins
- Appliances: These can be considered built-ins and typically convey with the home in one sale but might not in another.
- Fireplaces and Columns: Structural enhancements that are integral parts of the home.
- Attached Garages: These are considered built-in structures providing additional value and utility.
What Makes Built-Ins Unique?
Certain items might be considered built-in for one home but not another. For instance, appliances can be negotiated either to stay with the home or be taken by the seller.
Negotiation and Built-Ins
During the negotiation phase of a home sale, buyers have the opportunity to request the inclusion of specific appliances or built-in items. The seller has the choice to either agree to leave these items or to adjust the selling price in accordance with their value.
Seller’s Discretion
It is ultimately at the seller’s discretion whether or not an item that is not physically attached will convey with the property. Sellers should clearly state what is included and buyers should ensure these are explicit during negotiations.
Making the Most of Negotiations
Buyers and sellers should discuss all items of interest early in the negotiation process. Clarity about what constitutes a built-in and what doesn’t can prevent potential misunderstandings and ensure smooth transactions.
Unlock Your Real Estate Potential: Take the Ultimate Knowledge Challenge!
### What are "Built-Ins" in real estate terms?
- [x] Items or structures permanently attached to a home
- [ ] Movable furniture
- [ ] Temporary decorations
- [ ] Items that are included at the discretion of the buyer
> **Explanation:** Built-ins refer to items or structures which are permanently attached to a home, like appliances, fireplaces, attached garages, and more. These are considered integral parts of the property.
### Which of the following can be an example of a built-in?
- [x] Fireplace
- [ ] Freestanding bookshelf
- [ ] Removable wallpaper
- [ ] Area rug
> **Explanation:** A fireplace is an example of a built-in as it is a structural component of a home that is permanently attached.
### Are appliances always considered built-ins during a home sale?
- [ ] Yes
- [ ] No, they are never considered built-ins.
- [x] No, it depends on the sale agreement.
- [ ] Yes, but only if the home is new.
> **Explanation:** Appliances can be considered built-ins in one sale but not in another. It ultimately depends on the negotiation between the buyer and the seller and what is agreed upon in the purchase agreement.
### Who decides if non-attached items will stay with the property?
- [ ] Appraiser
- [ ] Real estate agent
- [x] Seller
- [ ] Buyer
> **Explanation:** It is usually the seller who decides whether non-attached items will stay with the property. The buyer can negotiate to include such items in the sale.
### Why might a seller adjust the selling price of a home?
- [ ] To match market trends
- [ ] To meet buyer's budget
- [x] To reflect the value of included built-ins or appliances
- [ ] To speed up the sale process
> **Explanation:** A seller may adjust the selling price to reflect the value of built-ins or appliances included in the sale, as these raise the total value of the home.
### During which phase of the sale do buyers negotiate to include appliances or built-ins?
- [x] Negotiation phase
- [ ] Initial listing phase
- [ ] After closing
- [ ] Mortgage approval phase
> **Explanation:** The negotiation phase offers buyers the opportunity to request the inclusion of certain appliances or built-ins in the sale. This is when all terms of the sale, including what stays or goes, are typically discussed and agreed upon.
### Which of the following is NOT typically considered a built-in?
- [ ] Attached garage
- [ ] Art niches
- [ ] Columns
- [x] Freestanding refrigerator
> **Explanation:** Freestanding refrigerators are often not considered built-ins as they are not permanently attached to the home. Built-ins normally refer to structural components permanently affixed to the property.
### A buyer wants the seller to include a freestanding stove in the sale, what's a common next step?
- [x] Include it in the negotiation
- [ ] Contact a real estate appraiser for advice
- [ ] Check if it is included in the home's insurance
- [ ] Ask neighbors what they did in similar situations
> **Explanation:** If a buyer wants the seller to include the freestanding stove in the sale, the common next step is to negotiate this inclusion with the seller and have it documented in the purchase agreement.
### Can built-ins affect the appraised value of a home?
- [x] Yes
- [ ] No
- [ ] Only if they are brand new
- [ ] Only if they are luxury items
> **Explanation:** Built-ins can affect the appraised value of a home as they are considered part of the structural enhancements which can add value to the property.
### Why might built-ins lead to price negotiations between buyer and seller?
- [ ] Because they are often subject to taxes
- [x] Because they add value to the property
- [ ] Due to legal requirements
- [ ] Since they usually require repairs
> **Explanation:** Built-ins can lead to price negotiations because they add value to the property. Buyers may negotiate to include these items in the sale, impacting the overall selling price.
### Can a domed ceiling be considered a built-in?
- [x] Yes
- [ ] No
- [ ] Only if it is new
- [ ] Only in high-end homes
> **Explanation:** A domed ceiling is considered a built-in as it is part of the house's structure and is permanently attached.
### Who might ultimate convey the decision if an appliance will stay or not during a sale?
- [ ] State laws
- [ ] Home inspector
- [ ] Appraiser
- [x] Seller
> **Explanation:** The seller ultimately has the decision power whether an appliance, which is not permanently attached and could possibly be considered part of the built-ins in negotiation, will convey with the property during a sale.
