It's quite common in many Paradise Valley luxury home transactions to include some personal property in the transaction. Whether it's a table that perfectly fits the room, or a couch that just wouldn't go as well anywhere else, there's often at least some bit of personal property in a luxury home transaction.
 
However, when the value of that property becomes significant, it can muck up a transaction involving a bank loan. To the bank, 100% of the value lies in the house -- that's their collateral, and they are not lending on personal property. So, when hundreds of thousands of dollars of art or furniture are thrown in the mix, they have to be accounted for.
 
What the bank typically wants is to see personal property excluded from the purchase contract, on a separate bill of sale. While this sounds simple enough, it often leads to massive problems.
 
Specifically, the buyer and seller then have to agree what the personal property is worth, and separate that out from the transaction. I have never met a seller who hasn't overestimated the value of their furniture. In reality, even furniture just a year old has a market value in the range of 25 cents on the dollar. That stings, and thus furniture with a market value of $50k can derail a $3 million real estate transaction.
 
The advantage of cash deals is that this type of separation of personal from real property need not be spelled out. The buyer can simply offer on "the total package" as they please.
 
Both buyers and sellers should be mindful of these issues if personal property is going to be involved in the transaction. Where there's a bank involved, the tail often wags the dog.