Furniture included in a Sale...

[Roscoeman]

I currently have an assignment which includes the furniture and hot tub in the sale.

Per the Listing Agent (seller is son of the Real Estate Agent) the furniture and hot tub (which is a stand alone, not built in) included in the sale were purchased approx 1 year ago for $7,500/approx. total.

Typically, there would be some functional obsolescene attributed to these items not returning there full value in the marketplace. How do you determine an approx. depreciation on these items.

Thank you for any suggestions...

 

[joe huffman]

Not real property, unless your scope of work included the valuation of such, then leave it out. See SR 1-4(g)

 

[Michael Tipton]

Report it in the contract section for the subject.

 

[erick anderson]

I currently have an assignment which includes the furniture and hot tub in the sale.

Per the Listing Agent (seller is son of the Real Estate Agent) the furniture and hot tub (which is a stand alone, not built in) included in the sale were purchased approx 1 year ago for $7,500/approx. total.

Typically, there would be some functional obsolescene attributed to these items not returning there full value in the marketplace. How do you determine an approx. depreciation on these items.

Thank you for any suggestions...

I can tell you that the liquidation value of average used furniture ain't much...probably 10% of it's cost new, maybe 25% max. if it's good quality and in like new condition.

 

[Tina]

Was this personal property included in the sale as a convenience to the seller?

I'd just report about it in the contract analysis.

TB

 

[Roscoeman]

The personal property was included in the sale, as the seller had relocated...

 

[George W Dodd]

It would fall under seller's concessions. Is this a rental property? If so it would probably have more contributory value than if it's a straight SF. Report it on the form, a general list or catagory of items, the seller's estimate of cost, and then a percentage of contributory value, if any. Then compare this to typical seller concessions to determine what, if any, influence it had on the sales price.

 

[erick anderson]

The problem with used furniture is that you never know what other people have been doing on it. Ewwwwww!!

 

[Walter Kirk]

I once did a sale where the seller included a custom made pool table and a riding mower. The pool table would have cost hundreds to take apart and move and the seller was moving to a condo and didn't need the mower. The buyer didn't play pool and he had his own mower. I mentioned the items but gave them no weight.

 

[Chris Colston]

Furniture and "portable" spa...operative word is PORTABLE. Unless you are qualified as a "personal property appraiser" these are considered as concessions. They are mentioned and given no value, as you are appraising the REAL ESTATE.

The funding lender is going to require an inventory of the items, but that, too, is not your concern.