I have a situation with a short sale where the seller is insisting on selling all furnishings and appliances outside the contract and will not sign any offers unless the buyer agrees to purchase these items outside the contract. The listing agreement only excluded the the furniture, not the appliances. I have 2 offers, both willing to do this. My question is should I ask the bank if it is okay for the seller to do this? Or just proceed with the superior offer? I am worried that if I don't get the banks permission then they may frown on this process. According to the seller all these items were purchased by him separate from the real property.
Thoughts?
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Leaving the personal items on the purchase and sale requires the appraiser to appraise those items in. Would the appraiser want to guess the value of those items and subtract them off the value or real property? Would the appraiser know the value? Personal items should be done on some sort of bill of sale. Lastly, like others have said, the seller nets zero on the sale of their personal items.
Better to leave you out of it and leave the sale of personal property between buyer and seller outside of escrow.
What if you originally purchased the property "furnished"? If the value of the property includes the furnishings, then the furnishings will have to remain with the property and sold with the short sale, right?
No, furniture is not "Real Property". You can buy a property fully furnished and subsequently do anything you want with the non-built-in furniture then sell the house with no furniture. If the house is being sold furnished, you need to include an inventory of everything that is being included and place a value on those items. The short sale lender has nothing to do with the furniture and will neither increase nor decrease the value based upon furnished or not. A Bill of Sale should be provided for the furniture separate from the Real Estate Transaction.
(I am not an attorney and this personal opinion should not be perceived as legal advice)
Here in California, Bill of Sale between Buyers and Sellers. Nothing to do with the loan, (s), against the property. Good luck.
Jerri -
In Texas, isn't there a "Non-Realty Items" form? (I haven't practiced in Texas for a few years). You could ccmplete that form and also complete an Addendum stating what items are "excluded". If it's in writing and agreed to be the parties, it's their issue. Also, these forms would go to the bank as part of the Purchase Agreement so they will see what's happening. The bank doesn't own the property "yet".
Good luck !
xx
This is quite common in my area. We sell vacations homes and always ask for additional money for the furnishings. The furnishings and appliances belong to the seller and have nothing to do with the short sale. This is not the banks concern. Of course this doesn't mean they can sell a $500 stove for $1,000. Personal property is personal property. Why would a seller have to sell his personal belongings as part of a short sale?
Just let the seller and the buyer sort it out.
Thank you, this clears up a lot. I was concerned because the listing agreement and contract specifically mention appliances and outdoor cooking equipment as conveying with the property, unless specifically excluded. But I will not worry about it and will proceed with the superior offer.
They won't allow it any way... the seller can't get cash at closing, so it can't be done on the HUD.
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