Furniture included in a Sale...

[moh malekpour]

Just appraise the property without including the furniture. Mention the inclusion of the funiture in the purcahse contract and the listing. Don't make valuation of the personal property. Mention what the agent said in the listing or in the purchase contract and if the purchase contract value is more than the appraisal value, refer to the inclusion of the furniture price in the purchase contract. The lender is not going to finance the furniture.

 

[DB]

I have an entire market here, where personal property is included in EVERY sale. It is typical of the market for the furniture, or some degree of it, is included in each sale. Look around and talk to some realtors or ERC appraisers in your area and see if comps are available which included some degree of personal property.

Otherwise, just appraise the property as if empty and see what the difference is between market value of the property empty, and the contract price and see what contributory value the personal property adds to the sale.

 

[Roscoeman]

As always, thank you all for the support. My conclusions, were correct and just wanted to put it out there for all you experts...

 

[DB]

Now wait a minute ....

an EX is a has been and a SPURT is a drip under pressure .....

 

[moh malekpour]

I have an entire market here, where personal property is included in EVERY sale. It is typical of the market for the furniture, or some degree of it, is included in each sale. Look around and talk to some realtors or ERC appraisers in your area and see if comps are available which included some degree of personal property.

Otherwise, just appraise the property as if empty and see what the difference is between market value of the property empty, and the contract price and see what contributory value the personal property adds to the sale.

Doug,
Do lenders finance furniture? Obviously every occupied home is furnished. Can an owner who applies for refi, ask the LB or appraiser to include the furniture in the appraisal of the property?

 

[DB]

There is no financing allowed ... at least not on the surface ... all sales are within this resort/special use area, and all sales have to be approved by the BOD ... cash sales only ... no refi's ... all sites are leasehold ... I am sure that there are personal loans that purchase these properties, but none of the homes can be used as collateral ... and personal property is a part of every sale ... We do about 10-20 appraisals a year up there because no one else will ....

 

[Rudy Canoza]

USPAP Standards Rule 1-2 (e)(iii) any personal property, trade fixtures, or intangible items that are not real property but are included in the appraisal.

Fannie Mae Single Family Selling Guide Part XI: Property and Appraisal Guidelines XI, Chapter 2: Appraisal (or Property Inspection) Documentation (06/30/02)

The lender must disclose to the appraiser any and all information about the subject property of which it is aware, if the information could affect either the marketability of the property or the appraiser's opinion of the market value of the property. Specifically, the lender must make sure that it provides the appraiser with all appropriate financing data and sales concessions for the subject property that will be, or have been, granted by anyone associated with the transaction. Generally, this can be accomplished by providing the appraiser a copy of the complete, ratified sales contract for the property that is to be appraised. If the lender is aware of additional pertinent information that is not included in the sales contract, it should inform the appraiser. Information that must be disclosed includes:

• non-realty items that were included in the transaction.

/Try and keep up, folks...

 

[Frederick R. Ruffell]

The items you are describing are NOT real estate! This is just sad! If you do not know how to appraise in this situation I would suggest that you decline the assignmnet, or talk to your supervisor, or go take a class, or take some steps towards becoming competent so that u can stay square with USPAP.

 

[Chris Colston]

Stop snarling and pull in the claws, Fred.

Michele came here to learn, maybe those other sources were not available.

 

[Alisa]

You know, maybe she knows the answer but doesn't trust her own judgement yet???

The items you are describing are NOT real estate! This is just sad! If you do not know how to appraise in this situation I would suggest that you decline the assignmnet, or talk to your supervisor, or go take a class, or take some steps towards becoming competent so that u can stay square with USPAP.