The wife and I, were debating the other night on when is it time to replace your furnishings? This topic of discussion started while we were eye-shopping on the internet for our next home.
As we searched through Real Estate websites, we noted the size of furniture in a person’s house and compared it to our own. For the most part our furnishings are larger than the items on the photos on the websites. We chalked it up to living in a fairly large one bedroom condo of 855sq.ft.!
The consensus we had, was sell all large furnishings such as couches, bed, kitchen table and bookshelves before moving into a new space. The motto “out with the old, in with the new”.
Our couch and ottoman pictured above were purchased in June 2012 from a local furniture store for $1,700.00 plus taxes. Through simple math you can determine the price you pay per day to use it;
- Total number of years times 365 [5yrs times 365 = 1,825 days (& counting)]
- Total amount of money spent divided by total number of days used [$1700/1825 = 0.9315 cents per day]
What this calculation tells us, is we spent $0.93 cents per day to own and use our couch and ottoman.
What you need to determine is the wear and tear of the furniture to determine a fair asking price, if you are like us and want to sell your furniture before moving into your new home?
There are many formulas out there and my favorite is the 80/20 rule. Basically you’ve spent and used the furnitures 80% of its life and you should ask for 20% of its original value or the amount of wear and tear, you think the furniture still has left?
- Total price $1700 multiple by 80% = $1,360.00
- Total price $1700 minus used value $1,360 = Amount you should re-sell it for $340
However, you do need to take into account family living factors such as
- Do you have children
- Tears, rips, stains, holes, etc
- Is your home smoke free
- Pets. Do you allow them on your furniture
- How nice have you been to your couch
These factors play a large role on determining the fair price value of your furnishings. Because afterall you will probably take that money and put it towards your new home furnishings.