Personal Property Included With Sale

[Hank Outlaw]

Just curious how others handle personal property included with the sale of a single family home such as a refrigerator, washer / dryer, window a/c unit, etc.? I have excluded it from value in the past, noting it on an addendum as conveying with the sale of the property, but not included in value. Any thoughts, advice, comments???

Thanks,

Hank O.

 

[Farm Gal]

Aside from dealing with the contract terms in your analysis of the sales contract statment...


MY advice (others may vary) is to add a few lines indicating that as you considered it personal property that you neither closely looked it nor are in any way warrenting its continued functionality. From an appraiser's point of view despite the inclusion in the sale price the individual items (list 'em again) were neither considered in value nor warrentied to be functional, at the present time or any time in the future! :idea:

 

[Richard Carlsen]

$500 worth of used personal property in a $100,000 sale?

I tend to ignore most personal property like stoves, refrigerators or wall air conditioners since the market now tends to consider these items as "going with the house". Quite frankly, I'm not sure that stuff can be measured in the market place. Years ago, we did sort of a symbolic adjustment for appliances. I don't even put that small stuff in the sales grid. I don't consider it significant enough to be a factor in the market value.

Big stuff like pontoon boats, ski boats, snow mobiles (actually had three sell with a house once), big lawn tractors, furnishings, etc., if the broker or the seller does not break them out of the P.A., then I estimate their value and do a dollar for dollar adjustment in the sales grid. They are better off telling me what they are filing as personal property because I'm not real good at used jet-ski values.

We use a canned statement that no consideration is given to personal property, mineral rights or value of any standing timber. That just about covers most of the extra junk that will mess up a good appraisal.

 

[Walter Kirk]

A few years ago my sister and brother in law bought a house that they paid too much for. My sister said that even if they did pay too much for the house they got a custom pool table (they didn't play pool) and a John Deere lawn tractor.

After a couple of years they decided to move to a larger house, it cost them over $1,000 to move the pool table across town, by that time the tractor didn't run but that didn't matter since the new house also came with a John Deere tractor.

Appliances, lawn tools and custom furnishings are just used personal property and in most cases are left with the property since the seller either doesn't want them or doesn't want to move them. Unless they are very special items of personal property don't add anything signifficant to the value of a property.

 

[Otis Key]

Just curious how others handle personal property included with the sale of a single family home such as a refrigerator, washer / dryer, window a/c unit, etc.? I have excluded it from value in the past, noting it on an addendum as conveying with the sale of the property, but not included in value.

Check the Multi-Purpose Supplemental Addendum for Federally Related Transactions and there is a section on the second page that you can fill out about that. However, in agreement with Lee Ann, I also state that the PA indicates that there is personal property being transferred, but it is not included in the sale price and not considered as part of the appraisal assignment that this addendum is attached to and incorporated into as part of.

Clear as MUD?

 

[Steve Owen]

I'm with Richard, what's a $503 :rofl: deal on a $100k sale? I just note the items that are personal property and say they are not included in my opinion of value; usually no adjustments unless it's something big.

One thing we have around here that gets a lot of appraisers in trouble is above ground pools. Personal property, normally, they just sit on top of the ground. One time an appraiser called me and asked how to handle one that was built-in. It was buried about four feet deep on one side and surrounded by a built-in deck. My response: "Well, you can give the deck a little something, but no lender is going to make a thirty year loan on a pool that probably won't last five years-- I don't care how it's attached." :rofl:

 

[Dave Smith]

My standard comment my appraisal report:

In this market area the essential household appliances are normally included with the real estate at time of sale so they have been included in the appraised value. No other personal property was included in the appraised value or in the adjusted values of the comparable properties.

The appliances are included with 99% of all sales in this market. They are included in the sale prices. If there are boats, jet skis, porta-piers, etc. I allocate a value and let the chips, cow chips that is, fall where they may.

Realtors get upset but as my #1 LO says to the borrower: "I can't give you a thirty year mortgage on that couch, snow blower or riding mower!"

 

[Otis Key]

I allocate a value and let the chips, cow chips that is, fall where they may.

Realtors get upset but as my #1 LO says to the borrower: "I can't give you a thirty year mortgage on that couch, snow blower or riding mower!"

How much is THAT "Cow Chip" worth, by the way? :rofl: :rofl: :rofl: :rofl:

 

[Restrain]

Just did a new custom home. Almost $60K in electronics that I know of that were hidden in the contract...probably more. A plasma TV that hangs on the wall is NOT real estate. Now I have to explain that to the borrower and the builder. :blink:

 

[Steve Wyrick]

RStrahan

Give them and the builder a copy of the definition of real property and personal property right out of the definitions book, then take the personal property out of the contracted amount.

$60,000 man that must be a very fancy home.