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Personal Property and Real Estate Sales

When you purchase a Sunriver vacation property often times it will come furnished. Generally this is the norm and it is just assumed to be acceptable. However this can cause issues with your loan or appraisal.

All furnishings are considered personal property, a mortgage is on real property not personal property. Many of these furnishings truly have no value and stating so will often times put the lender at ease. There are times though when you have a newer home with a $50,000 furniture package that is included in the purchase price can cause problems.

Appraisers are well aware of the way these properties are priced, and will not increase the value of the home to fit the contract. Their job is to appraise the REAL PROPERTY not the PERSONAL PROPERTY. So, how do we solve this problem if it comes up in your sale?

There are many choices, the best is to adjust the contract to pay the appraised value and purchase the personal property outside of escrow and receive a bill of sale. Sometimes a simple addendum stating there is no value of the furnishings will work if the home appraises on it's own.

Regardless of how you take possession of the personal property there should always be a written inventory. These are time consuming and often times a REALTOR® will not want to take the time to inventory a home. Many buyers are not aware that this is the standard practice of furnished homes.

When you purchase your Sunriver Real Estate, using a local REALTOR® can save you a lot of headaches, money and frustration. There are many more issues with purchasing a vacation rental that a local broker will know.

I recently wrote a contract on a Sunriver vacation home, where the agent on the seller's side did not want to take the time to inventory the home. Wanting to provide an accurate list for my buyers and not having the ability to access the home except for a short time, I found that using RES (Real Estate Shows www.realestateshows.com) saved the day again. Check out the show that gives the buyers a great idea of what is in the home.... be sure to click on additional photos.

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Thesa Chambers • Broker • RE/MAX Sunset Realty
541-771-7064 Cell • 541-536-0117 Office • 888-868-2050 Toll Free
Mailing Address • PO Box 3510, La Pine, OR 97739

Posted by Central Oregon Real Estate | Broker Thesa Chambers, Licensed in Oregon on 10/10/2007 02:03 AM

Comments (16)

sunriver real estate, sunriver land, sunriver homes, sunriver condo, sunriver oregon, vacation homes, for sale

Originally posted at: Central Oregon Real Estate Info: Personal Property and Real Estate Sales

This post has been included in Oregon Information Deschutes County, OR Information Sunriver, OR Information

16 Comments on Personal Property and Real Estate Sales

OCT

2007

Pictures are always helpful. I had one where the seller switched out appliances at the last minute. The pictures were the only evidence.

Too funny Randy - I actually had one that replaced a dishwasher with a 1970's model in a 1990's home and thought we would be dumb enough to not notice the harvest gold dishwasher in with the black appliances.... amazing aren't they?

Hi Thesa, we have the same issues (of course!) We have a clause we insert into the contract stating that the furnishings have no value in relation to the value of the home and that they will be transferred by a bill of sale for a nominal amount. We do have the right to approve the inventory under the inspection clause.

It is always a little tricky and if there is a glitch, that is where it will be!

Just as I said in my post...Sorry but I'm not a furniture salesman. Never involve personal or furniture in any deal..it should be a separate transaction between the buyer and the seller after closing. It will most likely make your negotiations change. Not worth it....just do a clean deal and sell the RE not the personal property.

Interesting Thesa, is it because it is vacation homes. We just add furniture to the sales contract but it is rare, usually just appliances. However, when we bought our cottage, the furniture came with it and it was a plus getting started.

Thesa, We have the same issue with some beach properties. Personally I rather have the seller get ride of all their furniture and sell the property unfurnished, it's less head aches for everyone.

I shall keep this mind Thesa. When the time is right, just from looking at the many beautiful pics you share on these posts, I would love to get a vacation home in your neck of the woods!

Thesa - In the Houston area we very seldom sell the furniture with the property. If they do want to sell the furniture, it is a separate agreement between the buyer and seller. Nice photos!

No furniture here during the RE sale...sometimes after..

I love real estate shows.. I'm thinking of doing one for my personal inventory..

Thesa - I have has clients ask if they can throw in some item of personal value and I say, NO! It is not real property and I wonder how the builders get by with it. Just because they call it an incentive, doesn't mean it makes the home worth more.

I didn't know that it was pretty normal to have the home furnished! I guess we learn something new everyday. I've had to get around some personal property items in a purchase before...haha

It's a big second home market here in Park City Utah so selling furniture with a property is common here. I had one deal where the list agent wasn't local but in Utah. She wasn't familar with doing the inventory so I had to do it and have her get the seller to sign off but it worked out fine.

OCT

2007

Joanne - it is funny I have scanned the other comments on this how some people do not understand that resort properties are commonly sold with furnishings it is not an option...

Neal - Working in the resort community - this is not an option - 90% of my sales in Sunriver are with furnishings - like it or not.

Missy - it is a totally different world that is for sure sometimes the furniture causes issues other times it does not.... But the buyer is usually thrilled not to have to furnish the entire home right off the get go.

Mana - we do not have that option - it is the norm for resort properties here to be sold furnished - what we call full time residences which are not sold furnished generally take longer to sell - not because of the lack of furniture but rental history - um maybe I should write about rental history tomorrow.

Jason - we have some great properties - some furnished some not... my guess is you would be like me though and need a little more privacy and elbow room than the resort offers.

Candy - resort properties are a world of their own and there are a lot of differences... just another reason a local REALTOR® is so important.

Sally - that surprises me - I figured some of your second homes and vacation rentals would be sold furnished.

Kaye - RES is the greatest isn't it?

Paula - In the world outside of a resort you are right, but as a resort property, second home, or vacation rental furnishings are part of the deal - just no value it can cause issues - and knowing how to get through it is critical.

Rick - most of the homes in Sunriver are sold furnished - the ones that have been second homes, vacation rentals or investment properties - full time residences are not generally furnished.

Julie - good for you! they are not difficult but can be time consuming - I generally do the assorted flat ware, assorted glasses and so on... it works.

OCT

2007

Speaking of inventory, never never count every fork, spoon and dish! As Thesa said, "assorted dishes and flatware". Buyers will count them and if you have 8 on the inventory and there are only 7, you have a "glitch". Properties that are not furnished take longer to sell as a Buyer doesn't want to have to spend an additional $10-20,000 to furnish it. If it comes furnished, even if it is old and tired, it gives them time to replace things gradually and make it theirs.

OCT

2007

Thesa,

Another use for RES - I see someone on here think of a new way to use RES all the time. This kind of idea could also be used for insurance purposes after you move in. Make a list of serial numbers and put it with the pictures in a safe place.

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