Personal Property Can Cloud Your Deal

Too often buyers and sellers become fixated on the personal property and belongings that fill the home they're looking to buy or sell. We've found and have always advised our clients to resist the urge to include personal property in any offer or counter offer unless it's absolutely necessary. The goal is to sell your Real Property (The actual land and improvements) and it can become much more convoluted when furniture, lawnmowers, docks or other items are thrown into the negotiations.

As a buyer, you're more likely to get the most movement on price by coming in with the cleanest offer possible and that includes no personal property. With the savings, you can purchase new items or negotiate with The Seller after the deal is agreed to in an effort to acquire some of the personal property.

As a Seller, you're not likely to get a fair value for that personal property by lumping it into a sale. If there are items you don't want to have to move or don't care to keep, then maybe you throw those in as a way to put together the deal that is close but not quite together yet. If some personal property is worked into the transaction, it's important that it is handled through a separate bill of sale (even if the sale amount is $1) and not included as a part of The Purchase and Sale Agreement for the real estate. Lenders will typically refuse to underwrite a loan that includes personal property. Finding the right home for the right price is difficult enough. Stay on task and don't miss out on an otherwise perfect property because the seller won't give up the chipper/shredder (which I did have to buy for a buyer client once in order to put a deal together!) in the garage.