Q: We accepted an offer on our home and after rereading the purchase agreement, I noticed that it states that we have to provide the buyers with a bill of sale for all personal property included in the sale at closing. We did an online search and it appears that our appliances, pool table and basement bar stools that we’re leaving would be considered personal property. We no longer have the receipts from when we bought them. What should we do?

A: Good news — you do not need your original receipts from the purchase of those items. A bill of sale is a written legal document provided to pass title of personal property from a seller to a buyer. It is not the actual original purchase receipts of the merchandise. A typical bill of sale will read something like this: “For the sum of one dollar ($1) and other good and valuable considerations paid to the seller by the purchaser, the seller warrants and conveys to the purchaser all the seller’s rights, title and interests in the above-mentioned property.” It can go on and mention items included such as all built-in equipment, lighting fixtures, blinds, shades, window treatments, attached floor coverings, attached mirrors, garage door opener and transmitters, screens, storm doors, landscaping, etc. It should definitely list the items that are included in the sale, which in your case would be the appliances (individually named), pool table and basement bar stools. The bill of sale normally also list what items are excluded from the sale. FYI: the $1 is more or less symbolic and included as part of the purchase price. You will not see a separate line item for a $1 charge on your closing settlement statement. As always, you should consult an attorney regarding legal matters.

Q: I’m buying a home and received a copy of the appraisal. In addition to the appraised value of the home, there is also a cost approach value. What is the cost approach value?

A: Cost approach is rarely used in residential sales. Its presence on appraisals can cause confusion, although there are times when it’s necessary. The cost approach is a method of appraising a property based on a depreciated reproduction or replacement cost of improvements plus the value of the lot or land. As an example, let’s suppose you have a 20-year-old house that is unique and there are no others like it in a remote area for 10 miles. The appraiser calculates how much it would cost to build that house new today. Then subtracts value for the physical deterioration, functional and economic obsolescence of your current home and then adds on the value of the lot to make its cost value equal to your 20-year-old house. This is done because it was less expensive to build that house 20 years ago than today.