It\u2019s very common for appliances such as stoves, refrigerators, and dishwashers to be included in a real estate purchase and sale agreement (sometimes referred to as a P&S agreement). Although these items are not real estate <\/span>according to the traditional definition <\/span><\/a>of the term, they are difficult to remove and are often considered part of the property. But there are other situations in more of a gray area. Perhaps there is a nice rug, or a particular piece of furniture, that the seller wants to include in the deal. However there are a number of things you will need to consider if you want to include personal items such as these in your purchase and sales agreement.<\/span><\/p>\n In most cases, lenders will base the amount of a mortgage loan on the real value of the home as determined by an appraisal. However, when personal items are included in a real estate sales\u00a0contract, the sales price will often reflect the inclusion of these items. A buyer may be willing to offer a higher price because of these extras. But lenders are only willing to finance the price of the home, leading to a discrepancy. A\u00a0mortgage loan exists for the purpose of financing real estate; personal items do not fit the definition of real estate. If the buyer defaults on the loan and the lender must foreclose, they cannot reclaim or repossess personal items. Often underwriters will even require such items to be removed from the contract. <\/span><\/p>\nPERSONAL ITEMS AND YOUR MORTGAGE LOAN<\/b><\/h2>\n
HOW TO INCLUDE PERSONAL ITEMS<\/b><\/h2>\n