When you purchase a Sunriver vacation property often times it will come furnished. Generally this is the norm and it is just assumed to be acceptable. However this can cause issues with your loan or appraisal.
All furnishings are considered personal property, a mortgage is on real property not personal property. Many of these furnishings truly have no value and stating so will often times put the lender at ease. There are times though when you have a newer home with a $50,000 furniture package that is included in the purchase price can cause problems.
Appraisers are well aware of the way these properties are priced, and will not increase the value of the home to fit the contract. Their job is to appraise the REAL PROPERTY not the PERSONAL PROPERTY. So, how do we solve this problem if it comes up in your sale?
There are many choices, the best is to adjust the contract to pay the appraised value and purchase the personal property outside of escrow and receive a bill of sale. Sometimes a simple addendum stating there is no value of the furnishings will work if the home appraises on it's own.
Regardless of how you take possession of the personal property there should always be a written inventory. These are time consuming and often times a REALTOR® will not want to take the time to inventory a home. Many buyers are not aware that this is the standard practice of furnished homes.
When you purchase your Sunriver Real Estate, using a local REALTOR® can save you a lot of headaches, money and frustration. There are many more issues with purchasing a vacation rental that a local broker will know.
I recently wrote a contract on a Sunriver vacation home, where the agent on the seller's side did not want to take the time to inventory the home. Wanting to provide an accurate list for my buyers and not having the ability to access the home except for a short time, I found that using RES (Real Estate Shows www.realestateshows.com) saved the day again. Check out the show that gives the buyers a great idea of what is in the home.... be sure to click on additional photos.
Thesa Chambers • Broker • RE/MAX Sunset Realty
541-771-7064 Cell • 541-536-0117 Office • 888-868-2050 Toll Free
Mailing Address • PO Box 3510, La Pine, OR 97739
Hi Thesa, we have the same issues (of course!) We have a clause we insert into the contract stating that the furnishings have no value in relation to the value of the home and that they will be transferred by a bill of sale for a nominal amount. We do have the right to approve the inventory under the inspection clause.
It is always a little tricky and if there is a glitch, that is where it will be!
Joanne - it is funny I have scanned the other comments on this how some people do not understand that resort properties are commonly sold with furnishings it is not an option...
Neal - Working in the resort community - this is not an option - 90% of my sales in Sunriver are with furnishings - like it or not.
Missy - it is a totally different world that is for sure sometimes the furniture causes issues other times it does not.... But the buyer is usually thrilled not to have to furnish the entire home right off the get go.
Mana - we do not have that option - it is the norm for resort properties here to be sold furnished - what we call full time residences which are not sold furnished generally take longer to sell - not because of the lack of furniture but rental history - um maybe I should write about rental history tomorrow.
Jason - we have some great properties - some furnished some not... my guess is you would be like me though and need a little more privacy and elbow room than the resort offers.
Candy - resort properties are a world of their own and there are a lot of differences... just another reason a local REALTOR® is so important.
Sally - that surprises me - I figured some of your second homes and vacation rentals would be sold furnished.
Kaye - RES is the greatest isn't it?
Paula - In the world outside of a resort you are right, but as a resort property, second home, or vacation rental furnishings are part of the deal - just no value it can cause issues - and knowing how to get through it is critical.
Rick - most of the homes in Sunriver are sold furnished - the ones that have been second homes, vacation rentals or investment properties - full time residences are not generally furnished.
Julie - good for you! they are not difficult but can be time consuming - I generally do the assorted flat ware, assorted glasses and so on... it works.
Thesa,
Another use for RES - I see someone on here think of a new way to use RES all the time. This kind of idea could also be used for insurance purposes after you move in. Make a list of serial numbers and put it with the pictures in a safe place.