Question Details

Janice Stick…, Real Estate Pro in Bourne, MA

How do you tactfully avoid becoming involved with the sale/purchase of sellers' furniture, etc so that the focus remains on the real property?

Asked by Janice Stickles, Bourne, MA Wed Jun 12, 2013

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If the personal items are included in the contract, the appraiser will adjust the value of the home to remove the value of those items from the stated value of the home... it does the seller no good to include them in the contract, and more often then not, causes loan-to-value issues if the buyer is close to their loan-to-value limits...

I suppose the best way to handle this would be to ask the seller how much they consider the items to be worth, and how that has been factored into the asking price... Discuss the fact that the appraisal will be adjusted down for the amount the items are worth in the "fair market"... i.e. if the stated "fair market" value of a washer and dryer is $800, that amount will be subtracted from the appraised value of the house for underwriting... It could hurt the deal if there is enough value in the items to negatively affect the homes sale value...

This can be avoided by mentioning in the contract that the items to be included with the house are itemized and listed in a separate bill of sale, that will be agreed upon by both parties... Draft up an itemized bill of sale for the items and make the whole transaction worth $10. That way, the sale of the home, and it's appraised value, are not affected by the items themselves...

The seller gets the full appraisal value for the home, and the buyer doesn't have to worry about the value of the items messing up the loan-to-value for their loan... It's a Win/Win.

I know this is a lot of information, and can be confusing... give me a shout if you have any questions.
0 votes Thank Flag Link Wed Jun 12, 2013
Furniture and personal belongings are not considered real property. If you aren't interested in purchasing any of the sellers furniture just let them know that. The seller needs to know that a bank appraiser isn't going to include personal belongings in their valuation so it should be something separate from the contract.

0 votes Thank Flag Link Wed Jun 12, 2013
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