On just about every purchase we do at Mahone Mortgage there is personal property in the contract. Normally it’s just a refrigerator or stove and it’s no big deal. But lately we’ve seen tractors, boats, tools, TV’s, stereos, furniture, etc. When those types items are in the contract 2 things can happen. The underwriter might want photos of the items but more important, the underwriter might want a value for those items. And a value of $0 will not fly. The underwriter could ask the appraiser to put a value on the items or the underwriter might go to ebay to get a value. You never know. After a value has been obtained the sales price is reduced. Depending on the down payment the borrower is making, this could affect the loan.
So what is the best thing to do with personal property? My advice, put all personal property of a separate addendum. Even if it’s a stove or refrigerator I would suggest getting into that habit. It is just one less headache you can avoid down the road.