personal property included in contract

[Valerie Anne]

how do other appraiser handle this? I have an order for a sale, with quite a bit of personal property included. I don't feel I can do this assignment unless they separate out the personal property on an invoice that isn't associated with the real property sale. The lender, whom you would think would appreciate this, thinks its all ok because of page 2 of the sales contract allows for this. any thoughts? I appreciate any feedback.

 

[Mr Rex]

I appraise the Real Estate.

 

[Pittsburgh Pete]

The value of the real estate will be the same no matter what else is included, n'est pas!! The only reason to know the allocation to the personal property is if you use the property as a sale/comparable down the road!!! Otherwise, they can throw grandma in with the sale and the real estate is still worth what the real estate is worth!!!

 

[RustNeverSleeps]

is it on a Fannie form? You certify that you are giving an opinion of market value for REAL property. This can't be changed.

 

[Valerie Anne]

thanks all!

I appreciate your answers so quickly. Val

 

[Terrel L. Shields]

Ask them (the sellers and the buyers) how much they allowed for personal property. Explain why (if that is the case) there is a difference between the contract price and the market value you find. Ignoring the personal property is not compliant with USPAP. You have to explain it in the section about the contract.

 

[RSW]

We have that happen in the Gatlinburg area all the time with the rental cabins being sold fully furnished. You can only appraise the real property and not appraise the Personal property. Agents get really upset with appraisers when the appraised value of the subject property is far below the contract price. But, it is what it is. You do need to disclose the personal property in the appraisal report and make some sort of statement about it not being given any consideration in the final value opinion of your appraisal report.

 

[Terrel L. Shields]

You can only appraise the real property and not appraise the Personal property.

Of course you can appraise the personal property....it is just that lenders in secondary market are taking only "Real" Property. No one is forbidden to include personal property. For poultry farms, I frequently do exactly that. Sometimes it is hard to value it but I use a tractor/farm impliment cost book. Our poultry farms often have a tractor, bushhog, decaking machine (it's not exactly the kind of "cake" you'd want to eat) and a generator (often a pto driven gen in the 20 Kwa range. And trade fixtures include feeders, drinkers, feed bins, nests, slats, egg handling machinery, etc.

 

[RSW]

Sure, you can appraise it. But, it cannot be appraised as real property.

 

[Jim Hill]

Here in Florida it's done all the time.

Right now about the only way to sell a home is to make concessions here in Florida.

That includes cars, trips, taxes, howeowners insurance, furniture and many other things.

This is why when you pull public records you must start making phone calls to try and confirm the numbers other wise you could find yourself in trouble.

When you are taking your comp pictures and you see someone outside the home stop and let them know why you are taking a picture of their home.

Do not tell them the subject property owners names or give them an address of the subject property.

When you are talking to the person ask them if they are the homeowner and if the answer is yes try to comfirm the selling price public records shows for their home and ask if there was any personal property included or any other type of concessions.

I cannot tell how many times a homeowner as told me the selling price included all kinds of personal property along with the new car in the garage.

Public records may show the home sold for $200,000 dollars but when you back out all the concessions your comp may not be such a good comp in the end.

It is more important then every to verify everything you are doing the best you can because I believe more states are going to go after appraisers in the future to try and correct some of the past problems.

Zillow reports public records and how any of that information has much value is an interesting question in the type of makets we are right now.

Jim Hill