The following originally printed in the Greenville Journal.
When it comes to vacation homes, the contract of sale often includes a separate Bill of Sale for furnishings. The challenge, says Joan Herlong, Owner and CEO of Herlong Sotheby’s International Realty, “is that furnishings are not real estate. I’m not a furniture salesmen; it’s not my job to place a value on furniture.”
It’s not uncommon for a contract of sale to include a few items for just a dollar. “For example,” says Herlong, “the washer, dryer, fridge, and four porch rockers are sold for one dollar, paid at closing, on a separate Bill of Sale. Include all that stuff for a dollar, and it’s easily folded into the mortgage.”
“The oddest personal items I’ve ever sold for a buck were two Jack Russell terriers,” recalls Herlong. “They were cute pups, but so mean . . . and the seller insisted on selling them after the buyers first wrote them into the offer!”
Sometimes buyers and sellers get creative in the value of used furniture – in a cash deal.
“I’ve put numerous cash deals together whereby the buyer and seller happily agree on a Bill of Sale number that significantly exceeds actual market value, and the price tag for the house itself is consequently lower.”
Why were they happy?
“Because the seller doesn’t pay commission or sales tax on the sale of used couches, beds, tables, etcetera. The seller’s focused on their bottom line,” says Herlong. “The buyer’s property tax basis is also lower. That’s often a cash recipe for happiness.”