Dear Monica: We are in the process of selling our house and want to sell the furniture to the buyers as well as the house. Does this complicate the sale? Jessica T.
Dear Jessica: It would be so convenient to sell your house and its furniture to the same buyer in the same transaction but the two assets being sold are different. Buyers won’t want personal property and real estate to be combined in the purchase price because this will make their property taxes, which are tied to purchase price, higher. The buyer’s lender, if there is one, won’t like it because they are only lending on the real estate at an appraised value, which does not include personal property.
The other issue that can complicate a transaction is reaching agreement with the buyer on the price of the personal property being sold. If you want to sell your furniture, handle this outside of escrow, and don’t include it in the real estate contract.