Which Projects Home Sellers Can Leave For the Buyer — and Which Ones They Can’t

Biting the Bullet vs. Discounting the Sales Price

Can Minnesota homeowners sell a house with a red-tagged furnace?

The somewhat surprising answer: “You betcha!”**

Ahhh, but is it smart for the Seller to sell a home that needs a new furnace?

The answer to that is more nuanced: “Usually not — but it depends on the home’s condition.”

Getting Off on the Wrong Foot

So, when a home is otherwise in pristine condition, stipulating that the sale is subject to the Buyer replacing the furnace, post-closing, is likely to cost the homeowner much more than the $4k – $5k it would to simply replace it themselves before going on the market.

That’s because the bum furnace will shift the focus of the sale from Buyers’ emotional connection to the home, to how much it’s going to cost them to make the home livable, post-closing . . . and what else might be wrong with it. 

Anticipating the Buyer’s Wants

“That all makes sense,” some Sellers reply, “but, isn’t it better to give the Buyer an allowance to pick their own furnace? (including preferred contractor, brand, spec’s, etc.).”

I agree with that argument when it comes to Kitchens and Baths — there’s just too much variability in taste, budget, and contractor finish levels.

But, furnaces (or boilers) are usually much more standard items.

They’re either regular (80%) or high-efficiency (90%), and made by a couple well-regarded manufacturers (Carrier and Trane both come to mind).

If the homeowner simply gets a model and brand consistent whose quality is consistent with the rest of the home . . . they’re usually fine. 

Then their Realtor can focus on highlighting all the home’s positives. 

**Subject to these two caveats: 1) the sale has to occur outside of heating season (July qualifies); and 2) the local municipality has to give its say-so.

In most Minnesota cities with point-of-sale inspections, that’s usually granted in return for both parties to the deal agreeing to create and fund an escrow account, to ensure that the work actually gets done (usually no more than 90 days after closing).

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