# How to sell a home with a HT?



## Rancho5 (Aug 20, 2009)

How does one sell a home with a HT?

My company will be moving me this year and we are just waiting for the call to let us know where. The actual move will probably be in July so I have some time to plan.

While I've thought a lot about looking for a home with space to build another HT, I haven't put much thought into how to sell mine. BTW, the company will purchase my home (averaging three appraisals) if it stays on the market longer than 120 days.

It's not fancy but my HT includes, 110" Wilsonart screen wrapped in black velvet tape, Black velvet curtains, triangular fiberglass bass traps, ten large acoustic wall panels, portable stage for rear sofa, Epson 1080p PJ about 4 years old with two extra lamps, SVS front speaker trio, and SVS cylinder subwoofer, Wharfedale surrounds, Mirage bookshelf rears, Onkyo 7.2 120 watt receiver, PS3, and miscellaneous other things. Sorry for the lack of model numbers but I'm at work... 

I've thought of these options:

1. Just include the HT in the price of the home and then scrap together money for the next build. Least desirable option because I'm not too sure if I can scrape together enough for a build, let alone enough for equipment.
2. Because items attached to walls are customarily included in the home, unless specified otherwise in the purchase contract, just let potential buyers know that it all comes with me and they can't have it.
3. Let potential buyers know that the items which make up the HT can be purchased for an additional fee...say replacement cost. So just add up the cost of the items and add the $5,000 in an addendum.

The room without any HT equipment would still be a great bonus room. It would just have dark brown walls, dark walnut laminate floors, canned lighting and an empty open closet with rollout shelves. 

The HT is not to code, as it was built over the garage with only one door and no windows. Total black out :T but it does have HVAC. Not too sure if I can include it in the total square footage of the house, but it is what it is. I love it. 

I thought it actually might be a selling point for the house. Kind of like when you bake cookies before someone comes to look at your home to walk through. I'd pop some popcorn for the smell, put on a BR of Avatar, crank the sound, shut the door to the HT and leave the house. "What's that sound coming from that door? Creak..... There's a MOVIE THEATER in here!" Might be fun for them to see it in action.

Anyway, your thoughts are most appreciated.


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## NBPk402 (Feb 21, 2012)

If the HT was not built to code... I would remove everything and just sell the house with it being an extra room. Usually anything that is not built to code is not included in the price meaning the value does not go up for the addition, and might even lower the price if they are required to bring it up to code when they purchase it.


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## tonyvdb (Sep 5, 2007)

At the very least I would take out all the equipment you want to keep and replace it with a HTIB system and low end Multi media projector. It will still add a lot of value over just a spare room.


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## NBPk402 (Feb 21, 2012)

tonyvdb said:


> At the very least I would take out all the equipment you want to keep and replace it with a HTIB system and low end Multi media projector. It will still add a lot of value over just a spare room.


I would ask a Realtor... In our area if the addition is not to code it can not be added to the square footage of the home nor can it raise the value of the house.


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## Jeff Aguilar (Apr 11, 2006)

Tony,
I do not think that the home theater would add any value to your home to sell it. If you have really nice dedicated room, it will just show a potential buyer what you could do with that space. It will not allow your home to sell for $5,000 or $10,000 higher. 

If you have in-wall speakers, that would fall into the line of staying with the house. I do not think having a speaker mounted to the wall would fall into that category. If this is a potential problem as you see it, I would remove them and pack up the room. The less you have in the house, the easier it is for buyer's to visualize what they would do with that room. Not everyone will do a dedicated theater in their home. I think more people would rather have a play room for the kids. 

Since your room is built over the garage, without permits, you will not be able to include it as more square footage. Any good realtor who is representing the buyers would ask about that. You would also have to disclose it on your Real Property Disclosure Form (or whatever form your area might have covering that type of information). 

I would pack all of your equipment up and move it to your next home. It might take a long time to get everything back up, but at least you wouldn't have to replace everything. You would never be able to get the value you put into your stuff if you sold it with the house. The appraiser would not be able to justify your equipment to increase the value of the house. It's the same thing when you do something really nice in the house, like granite counters with an undercount sink and really expensive cabinets. They are a feature that you enjoy while living in the house but they are not going to add the value you put into them when you go to sell. What really determines the price of the house is the size and location, not as much the amenities. Nicer amenities will allow your house to sell faster than maybe one of your competitors, but you will not get the price of the amenities you put into it.

I hope that helps. I have sold some homes over the years that have had theater rooms. It's great to show what you could do with the space, but you really cannot add that value of what you spent to the home. I hear all the time that guys want their "Man" rooms, but as the saying goes, "A Happy wife = A happy Life". In other words, she usually wins!

Jeff


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## OKLAGMCRUISER (Jan 20, 2014)

I look as my addiction items i.e. HT equipment as I would for aftermarket audio equipment in my vehicles. They don't add value and I've worked hard to pay for those items so they always come out of my vehicle to be used/added in the next ride or sold to buy something better and newer. personally, if I were looking at your house and it had a dedicated room for HT, I'd have to contain myself until I left the viewing of the home to jump up and down in excitement, but as said...if the wife doesn't like it...I'd lose that battle....lol.


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## swatkins (Nov 26, 2013)

My last home would not have sold without the theater.

The house was a very nice home, in great shape and yard that was terrific. The only problem was the area was flooded with nice homes and the competition was fierce. 

My Realtor was shown how to turn on the system and I loaded a HD travel DVD into the player and set the sound to a reasonable TV level. Only 5 couples were shown the home and the Realtor said the look on ALL the men's faces, when they turned the corner into the theater, was utter amazement 

I had 3 offers for full asking price within a week  

One condition in all the offers was that I had to leave all the theater equipment. I didn't have much invested in the equipment and in fact I had increased the price to include the equipment so it was an easy condition to agree to 

Good luck with your sale...


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## swatkins (Nov 26, 2013)

On a sad note..

The couple that bought the home moved right in and added a pool to the home as their only change.

6 months after buying the home they also bought a new motor coach for their upcoming vacation. They picked up the motor coach and drove it straight to the RV storage lot and parked the unit. They tried to exit the coach and found that the door was jammed and they could not open it. After twenty minutes of trying to open the door they remembered they could climb out the emergency exit window and did so. The lady made it out OK but the man slipped and broke his leg.

An ambulance was called and he went to the hospital where they performed surgery to repair his badly broken leg. Unfortunately his leg became badly infected and had to be amputated after 4 weeks. Soon after the couple put the home back on the market because all the bedrooms were on the second floor and it was impossible for him to easily move about.

Luckily the theater room once again helped them sell the house quickly...


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## Rancho5 (Aug 20, 2009)

Those were my thoughts in asking the original question. I, honestly, could not help but think that if the HT were on when people came to look they would just be bowled over. They might not even care that the room was not to code. They'd probably just say "wow! It's soooo dark in here, just like a real movie theater". And I would just tack on an extra 10k in the asking price. Then take the 10k and set it aside for my next build. I'm so glad someone has had a wonderful experience in having their HT help sell their home.


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## swatkins (Nov 26, 2013)

I would put some though into what equipment you leave with the home... Most people can't tell the difference in speaker quality and that would be one place that you could switch out equipment and it would not matter. 

In my case I left some speakers I had made along with a 4 year old Denon receiver and my 3 year old Sony HS10. I also made a deal with my wife that I could use the sales money to rebuild my new theater, that was important and saved me a lot of trouble 

Problem is I spent all the money on other things while building the new house ( whole house backup generator, ect... ) and I am having to slowly build up the equipment. As a plus I have a much larger room to work with. Also the advances in projectors and receivers is really remarkable and my theater is going to be much better than the one I sold!

PS ... leave a nice HD travel dvd running and bake some cookies just for insurance


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## pdxrealtor (Jun 30, 2013)

A theater in your typical home will be like selling a home with a pool in a state like Oregon. Some will love it, most will not. 

This 'buyer desire' will also be shifted by where the room is and what exactly it 'took' from the house. 

Ex. my house. I turned the down stairs family room into a dedicated area. Black ceilings, boarded windows, blocked HVAC, dedicated electrical, etc etc. 

More people than not, looking at homes in my area in my price rage (high 400s) would much rather have that lower room as it was intended to be used. A family room. 

Your home sounds a bit of a different case with the added room that almost sounds like if it was not there the home would still be a 'complete' home as it was 'intended' by the builder to be. So you might have a bit of lesser negative affect. 

For me, in my home, I would rip out my equipment and brighten up the room (you know, remove the boards on the windows and the like) before putting it on the market. 

My opinion on your room - concern yourself with the permits first and foremost. Because you don't have them doesn't mean you can't include the space, it just means you need to disclose that space is not permitted. Be prepared to get permits or tear the room down, whichever is more profitable to you. Any buyer's agent worth their salt will not let any non-permitted areas fly. 

What's not permitted? A bit of electrical? The HVAC? Mechanical? Structural? All of the above? How easy can it be permitted? A bit of electrical can turn into a lot of permit work. 

It sounds to me you have utilized space superbly, not taking any part of the normal finished floor plan, but adding to it. You did screw up by not doing permits. And the screw up might screw you. 

Assuming you can get permits easily 1) Do it BEFORE YOU LIST the home OR list the home as UN-permitted but permits in the works. 2)Give the option in the marketing material for seller to remove theater equipment and prep room for buyer's forward desire. This might mean primered walls vs. designer colored perfectly patched walls. 

Any more advice needed let me know. Feel free to PM for an email address. I don't mind helping where I can. Or having you compare your Realtors suggestions with my thoughts.


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## BamaDave (Dec 28, 2013)

Rancho5 said:


> The HT is not to code, as it was built over the garage with only one door and no windows. Total black out :T but it does have HVAC. Not too sure if I can include it in the total square footage of the house, but it is what it is.


Why is this not to code? I have the same set up and we purchased our house that way and the footage was included in the posting when we got it. Many HT's are built over the garage and it will help the house sell. I would not say anything, and let it show as it is. You would be surprised at how many folks are looking for just what you have, neck I know as we were when we got our current house.


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## NBPk402 (Feb 21, 2012)

BamaDave said:


> Why is this not to code? I have the same set up and we purchased our house that way and the footage was included in the posting when we got it. Many HT's are built over the garage and it will help the house sell. I would not say anything, and let it show as it is. You would be surprised at how many folks are looking for just what you have, neck I know as we were when we got our current house.


I am assuming it was not built with a permit... Which automatically means it is not countable in the sale price or square footage.


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## pdxrealtor (Jun 30, 2013)

BamaDave said:


> Why is this not to code? I have the same set up and we purchased our house that way and the footage was included in the posting when we got it. Many HT's are built over the garage and it will help the house sell. *I would not say anything, and let it show as it is*. You would be surprised at how many folks are looking for just what you have, neck I know as we were when we got our current house.



That's great until the theater catches on fire because of some dumb reason. Then burns the house down. 

You really think the insurance company is going to pay out on that?

Not to mention - where is your ethics?


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## pdxrealtor (Jun 30, 2013)

ellisr63 said:


> I am assuming it was not built with a permit... Which automatically means it is not countable in the sale price or square footage.


To an extent. It can be counted but it should be disclosed. If a buyer signs off on full disclosure (bad move IMO) then great. Lucky seller got 1)dumb buyer or 2) buyer is going to permit. 

Like a bedroom that doesn't have a closet or legal egress. They are listed in the MLS and disclosed there too. As well as in other disclosures. 


Either two examples above will pass appraisal.


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## BamaDave (Dec 28, 2013)

pdxrealtor said:


> That's great until the theater catches on fire because of some dumb reason. Then burns the house down.
> 
> You really think the insurance company is going to pay out on that?
> 
> Not to mention - where is your ethics?


Who said anything about having a fire and I guess just because someone did not pull a permit makes it a fire hazard? What like the building materials that you would normally build a house makes it more of a fire hazard, I'm missing something somewhere! You have got to be kidding me, the insurance company won't have a clue either. 

Ethics what over pulling a permit? You are kidding right, what are you the permit police? You ever speed or not come to a full & complete stop at a stop sign, that makes you unethical? 

My house was built by a custom builder with a purpose built home theater over the garage and it has one entrance and no windows and if that is not up to code then I guess the inspector for the PERMIT must have not been paying attention!

My glass is half full and I don't think about doom gloom scenario like some!

If and when we sell this house the HT will without a doubt will help it sell! Not sure about the bar or the pool table but the HT is a big hit when we entertain as I know it will help.

Just my opinion of course. How have a great day!


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## BamaDave (Dec 28, 2013)

pdxrealtor said:


> To an extent. It can be counted but it should be disclosed. If a buyer signs off on full disclosure (bad move IMO) then great. Lucky seller got 1)dumb buyer or 2) buyer is going to permit.
> 
> Like a bedroom that doesn't have a closet or legal egress. They are listed in the MLS and disclosed there too. As well as in other disclosures.
> 
> ...



My wife is a licensed insurance agent and has been with the same agency for over two decades. We just discussed what you are stating and she said that this only applies if you cook, live, eat, or sleep in the space. A bonus room is not required to have egress as its not considered a bedroom. Further, it also applied into the overall square footage of the home.


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## Tonto (Jun 30, 2007)

I would advise checking with your local inspectors office. Different placed have different building codes. When we remodeled, I added a bonus room upstairs for a dedicated HT. I had to have a window per my local building code to allow fire fighters access into the room from outside. It is not a bonus room over an external garage.

You cannot afford to not comply with code because you can be held liable (we live in a law suit happy world now days) if someone gets injured.


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## pdxrealtor (Jun 30, 2013)

My ethics comment was directed directly at your suggestion to the OP to NOT say anything about not having permits. 

Re-read my posts. Your wife just told you exactly what I did. 

Tonto seems to understand and further expands on why a seller would want signed disclosures or a permitted project. Not sure where you are missing things. 

Ive been selling homes for over 10 years. I think I know what Im talking about.


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## BamaDave (Dec 28, 2013)

pdxrealtor said:


> My ethics comment was directed directly at your suggestion to the OP to NOT say anything about not having permits.
> 
> Re-read my posts. Your wife just told you exactly what I did.
> 
> ...


The only thing I am continuing to say is that the second form of egress is "not required by Code" for that type of room and if that is the only non-code concern then it is a nonissue. Further, do you think that everyone on this forum places up some wall treatment and hangs a projector from the ceiling needs in a great room needs to pull a permit?, no. If that we the case they would have an inspector logging materials at every home center in the country for everyone to document everything that they do to their house. I still say that if the egress concern is the only non-code issue then what is there to disclose if in fact it is not a concern. Just my opinion, which is obviously much different from yours! 

Rancho you do what you feel is best. The most I would do would be to take Tonto's advice and check with his local building code inspection department to confirm what I am saying, but I am willing to place a wager the egress is not required as a standard throughout the country. 

Good luck on your move!

David


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## lcaillo (May 2, 2006)

Technically, anytime you install even low voltage wiring in the state of Florida you are supposed to have a contractor's license. The point at which permitting is required varies with the judgement of the local inspectors in most locations. Codes and enforcement vary greatly even in the same state.

When selling a home, one is ethically and/or legally required to disclose anything that might affect the value of the home.

My experience is that a home theater does not generally add much value, but in some cases, with very similar nearby options and an interested buyer, it might. One should not expect to recoup anything close to the cost of equipment left behind, however.


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## Serenity Now (Mar 28, 2014)

By not to code do you mean building code. Ie. egress?

If electrical:
Any electrical installation, alteration or service work technically needs a permit. If you did the electrical yourself, without a permit, the realtor is correct. Your insurance will not cover the loss potentially. You could even be fined, or charged criminally, if someone was harmed as a result. The main concerns are fire and risk of shock.

Code varies from place to place, along with standards, but this is law everywhere in Can/US.

Enough of that. :coocoo:

We just sold our house in the same situation and our realtors advice was to list the house with the HT gear as an exclusion. The buyer could buy it over and above if desired. Since we didn't have risers, stage etc. our house value was not negatively affected. Buyers see the cost of demo if re-purposing the space.

Adding an HT to any home other than a luxury home, does not increase value directly. If done DIY poorly, it could be a negative to the home. Taste is a big factor here.

It's like aftermarket parts on a car. Probably not a good thing for the average buyer.

Good luck!


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## MikeBiker (Jan 3, 2010)

Dedicated home theater rooms have fallen out of fashion with the general public. 

http://realestate.msn.com/article.aspx?cp-documentid=24921642&page=2

I would talk to a local realtor and find out if yours is something that the local housing market favors.


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## pdxrealtor (Jun 30, 2013)

MikeBiker said:


> Dedicated home theater rooms have fallen out of fashion with the general public.
> 
> http://realestate.msn.com/article.aspx?cp-documentid=24921642&page=2
> 
> I would talk to a local realtor and find out if yours is something that the local housing market favors.


Odd..... a few months ago I read an article that said home theaters were on the rise. The average cost was ~ 10k. I wish I could find that article now, but I can't seem to. :scratch:


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## Owen Bartley (Oct 18, 2006)

I'd say try to leave some flexibility. Have an option to purchase (or omit?) the theatre gear, listed specifically, for the buyers to decide if they want it or not. Then at least you won't be putting off a large part of your potential market.


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## pdxrealtor (Jun 30, 2013)

Owen Bartley said:


> I'd say try to leave some flexibility. Have an option to purchase (or omit?) the theatre gear, listed specifically, for the buyers to decide if they want it or not. Then at least you won't be putting off a large part of your potential market.



That is certainly an option, but as in my situation described above I would not advise it. The reason - presentation. You want the best presentation possible for the buyers who walk through. 

A true dedicated room is a different story.


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## Picture_Shooter (Dec 23, 2007)

I sold my previous house with the HT, but the buyers wanted it and they offer over asking price just for it. Just make sure the HT room is clean and looks professionally done and modeled. I had no issues unloading all my HT for sale and I noted "It was not for sale" but the price they paid for it, I chuckled to the bank and those added funds received wend towards closing / down payment on my new house that was purchased.  

Good luck.


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## Rancho5 (Aug 20, 2009)

OP here.

We didn't end up moving. Boss called and said that they couldn't find a place for us that was conducive to my wife's particular medical concerns. She suffers from horrible allergies here in the South West and her allergist told us to move as close to the coast as possible to help alleviate them. Anyway, no spots open in those areas so they asked us to stay put until a spot opened up. He said they'd prefer to do that than to just move us and then have my wife be miserable again. Maybe next year a spot near the coast will open up.

I love my company. To hold a spouses health concerns above the bottom line or convenience is amazing to me.


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## tonyvdb (Sep 5, 2007)

Rancho5 said:


> I love my company. To hold a spouses health concerns above the bottom line or convenience is amazing to me.


That truly is a great company to work for.


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