In most mortgage transactions, it’s best to avoid including significant personal property in the purchase contract.
Mortgage loans are intended to finance real property—the land, the home, and items that are permanently attached. Personal property, such as lawn mowers, patio furniture, televisions, or tools, is generally not part of the home’s appraised value.
If personal property is included as part of the negotiated purchase price, it may create additional questions during underwriting or the appraisal process. In some cases, the value of the personal property may need to be separated from the real estate purchase price.
If a buyer and seller wish to transfer personal property, it’s often cleaner to handle it through a separate bill of sale outside of the real estate transaction. Always discuss these situations with your real estate agent and lender before writing the offer.
Ready to Apply?
If you’re buying a home and have questions about your purchase contract or what should be included in the sale, I’d be happy to help.
When you’re ready, you can complete a secure online application by clicking the button below. I’ll work with you and your real estate agent to help ensure your transaction goes as smoothly as possible from contract to closing.
Note:
Questions about personal property should always be discussed with your real estate agent and lender before signing a purchase contract.