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Permalink Reply by Smitty on December 8, 2011 at 10:14pm

LOL...seriously?  Why does the seller need to replace furniture to close a sale?  Wasn't this anticipated BEFORE they put the house on the market?  Why is the "furniture" threatening the sale?

 

If you're asking can a buyer give a seller $$$ for furniture, well, there are many schools of thoughts on this.  The short answer is YES, and long answer is NO.  The approval usually states the seller is to get NO MONEY in regards to the transaction of the property being sold.  So if your definition of the property being sold is only the purchase price, then some people would say yes, you can have a buyer give a seller money, HOWEVER, I would err on the side of caution and most people know me to be a bit more liberal, but I wouldn't give a seller ANY MONEY if I've signed something stating they won't get any.

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Permalink Reply by Kevin - Greenville, SC on December 9, 2011 at 12:43am

ditto.

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Permalink Reply by david milstead on December 9, 2011 at 7:51am

Thank you for your response. The only way this buyer will buy the condo is with replacing the older furniture.  My question pertains to BOA allowing the Seller to come out of pocket $4,000 to pay for the furniture in order to close the transaction. Will BOA allow this or will they say any contribution of furniture should not be made because it would be a contribution from the Seller. This would all be stipulated in the contract.  I'm putting all this together as a back up contract that may be moved to first position soon.

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Permalink Reply by Smitty on December 9, 2011 at 8:00am

You can put anything you want in the contract, but it doesn't mean BOA will allow it.  Did you list the condo "SOLD AS IS"?  - I would tell the buyer the seller can't do it and if they don't like it, they need to move on.

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Permalink Reply by Thom Colby 888-391-5245 CA Brkr on December 9, 2011 at 10:37am

Furniture is not REAL PROPERTY and likely should not be included in the Purchase Agreement.  BofA likely didn't include the furniture in the existing mortgage (or were not aware of it).

 

A colleague of mine had a Short Sale recently and the short sale lender increased the "net" to them by $25,000 to account for furniture that had been "included in the sale" by the Buyer and Seller.  The lender wanted nothing to do with it as part of the short sale stating it was "not real property". 

 

In your situation, if the Buyer is stating they want the furniture replaced as part of the transaction, I would tell their agent it's not going to happen on a short sale and they can decide to buy or walk away because it won't be approved and all short sales are contingent on an approval from the lender.

 

Best of luck,

 

Thom Colby

Broker

Newport Beach and Palm Desert CA

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Permalink Reply by david milstead on December 9, 2011 at 6:02pm

Thom,

Thanks for the input.  I have one day to put this together with prior approval and the furniture has to be in the deal.

I have to disclose the furniture and was wondering if anyone had gotten a deal like this approved.

All input is welcome.

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Permalink Reply by Beverly Cibulsky on December 10, 2011 at 5:30pm

We sell real estate, not furniture. Gee when did this become an issure? Does the purchase priced reflect the fact that the sale (and furniture is "as is") What did they buyer base the offer on? The funiture that was there? Or knowing that they would want to replace it? Are they financing? Did the appraisal come in with the "crappy furniture?)  Anticipating they didnt like it from the begining?  Did anyone explain to th buyer from the "get go" that this is a short sale. Yeh BOA is mostlikey taking a big hit, if there is $4,000 more in the transaction, they would probably want it. Buyers will always be Buyers, and Sellers will always be Sellers, however, Did Buyer what the furniture replaced in the inital contract! David, the sad part is, when all is said in done (you finally get the short sale approved!) There are seller's who change their mind, and there are buyer's who decide to go for the throat knowing that this seller is in a desperate situation! BUYER: The seller is getting away with their debt, lets see what we can get out of this!

Another post: SELLER: changes their mind, and does not want to do now!

This is a very difficult market! If your approval is stong! Let the buyer's walk! Heck, they did you and the seller a favor! You know what you seller's lender wants. Plus it' BOA you can replace buyer!

All and all. Good Luck, Let BOA know! It will make or break the deal, but you did your best!

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Permalink Reply by Valerie Crowell on December 11, 2011 at 10:56am

Why does the furniture have to be in the deal?  Like others have said, we sell real property, not personal property.  And why does the seller have to replace the furniture for the buyer?  It sounds like another buyer is the right answer here.

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Permalink Reply by Bryant Tutas on December 11, 2011 at 7:57am

Furniture is not part of a real estate transaction and should be sold separately. Not why the seller would need to replace it before the buyer will close. Sounds like this deal was not properly negotiated from the get go.

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Permalink Reply by Kimberley Kelly on December 11, 2011 at 8:44am

Short Sales are different than Equity Sales.  This Buyer's Agent was apparently not aware of this???  Furniture etc., is done outside of escrow, not part of our deal or interest as Realtors.  Buyers and Sellers operate in their own worlds..B of A will not approve this.  In the Lenders world, the Seller has NO money.  Why tangle up a deal with this stuff?  Close it, re-list and move on..and don't do it the second time around.

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Permalink Reply by Mary Ellen Holleran on December 11, 2011 at 8:52am

If your seller has $4000 sitting around I promise you that BoA will tell you to forward it to them to put toward the mortgage debt. They will not approve this.

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Permalink Reply by Rodney Mason on December 11, 2011 at 10:09am

If the buyer is obtaining a mortgage, then the buyer's lender will not allow furniture to be included in the sale.  That would be considered an inducement to purchase and is not allowed in the lending world.  The sales contract should not contain any stipulation for furniture to be included in a sale.   

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