Buying Advice

I Want It To Be Included

It was a vacation rental. My wife is totally in love with the furniture. The sellers must have spent a fortune on it…and the 75” flat screen is too good to be true! But it was the new car the seller is throwing in that really sealed the deal! Oh yeah, I almost forgot to mention the garage. It’s perfect for all my hobbies. Who cares about permits. I’ll have my own man cave! But really, the coolest thing of all is the privacy. No neighbor will ever be close; after all, the lots on both sides are included in the sale. When the kids are grown, they can be right next door. It’s all too good to be true, and it’s all just a mortgage loan away. To this I say… “Whoa…not so fast cowboy!”

Every Market Has its Idiosyncrasies

With soaring shipping costs, sellers sometimes want to include personal property (furniture and autos), but this can be tricky. While it’s possible to include a few things, interestingly, doing so has more to do with the seller’s needs than the buyer’s wants. Mortgages basically last a lifetime, furniture does not. Lenders don’t want to finance furniture. If the value of personal property seems high, it may need to be removed from the contract. After that, the lender may require a declaration by the buyer and seller that there are no outside agreements regarding these items.

It’s Not So Simple!

Bottom line is that including things as a convenience to the seller may not be as simple as you think. Those with strong intuition have likely figured out that including additional parcels is basically impossible. While it may be possible to manipulate the purchase price in order to include value for personal property or the lots, there’s no guarantee it will work. The seller might offer to carry paper on the additional parcels, but the lender will want to include the additional payment in the buyer’s debt ratio. Additional parcels should rarely be included in a purchase contract when there’s a mortgage. It makes perfect sense. Two TMK numbers on a property complicate a foreclosure should one become necessary. Of course, when a buyer is pursuing a purchase, the last thing they are thinking about is foreclosure but that’s exactly where a loan underwriter’s focus is. Permits are always an issue. Your agent should provide you with information on the status of permits. Some loans will allow limited unpermitted areas while others do not allow them at all. Whether buying or selling, it’s best to know the challenges from the git-go!

About the Author

Denise Nakanishi

Denise Nakanishi is a REALTOR Broker with Hawai'i Life. Denise Nakanishi is one of Hilo's most acclaimed real estate agents. She reached the rank of Major in the US Army and is now known by many as "Major Mom." The nickname fits–not only does Denise bring the discipline and mission-oriented attitude you'd expect, she's also caring and compassionate, always looking out for her clients like they're her own family. Having made the Big Island her home since 1987, Denise combines her extensive knowledge of the area with a sharp focus on customer service and the results speak for themselves. She's the recent recipient of the Best East Hawai`i, Best of Zillow, Chairman's Circle Award, President's Circle, Top Producing Agent since 2001, and Realtor of the Year awards. Denise stays ahead of the curve because she's passionate about education–she served as Education Chair for Hawaii Island REALTORS® for many years. She's one of Big Island's best real estate resources, known for her weekly article in the Hawaii Tribune Herald. Denise leads Team Nakanishi for Hawai`i Life, who is committed to their family, work, and community. In her little time away from work, Denise is a committed runner and Grandy. She also devotes many hours to various Veterans' Organizations, the East Hawaii Cultural Center, and the Hawaii Island REALTORS®. You can email me at or via phone at (808) 936-5100.

Comments (0) Show CommentsHide Comments (Remember)

Cool. Add your comment...

Your email address will not be published. Required fields are marked *

Leave your opinion here. Please be nice. Your Email address will be kept private, this form is secure and we never spam you.

More Articles from Hawaii Life