Kit Crowne, loan officer extraordinaire from my office, is now dealing with a problem created by a purchase agreement that has a number of items that are personal property. I had the same problem happen a few weeks ago, so it needs to be addressed, as it will continue being a problem if not handled properly. I both of these situations, the lender has come back and requested a value be established for these personal properties.
In Kit’s case, we are talking about a few thousand dollars. Once the value of these items is established, it will require more down payment money from the buyer. Here is the frustration, personal property has been included in purchase agreements as long as I can remember and that is a long time. 99% of the time the appraiser just values the real estate and not the personal property and this previously hasn’t been a huge issue, but this is becoming more of a problem.
I have recommended many times before, whenever possible, keep large dollar value personal property out of the purchase agreement, so you don’t run into a situation like I have described. If you are not sure, contact a trusted loan officer that can assist in situations like this in order to avoid problems relating to purchase agreements.
