I am under contract to purchase a park in MI. Purchase price is $650K and a local lender is financing $390K. The title insurance company is asking for me to break out the personal property value vs real estate value as they will only insure the real estate.
The County assessor values the land at $150K. There are 17 park owned trailers that transfer with the sale and these are valued by me at $170K. It has been suggested I value the personal property at $50K; the land at $300K; and the balance of $300K between goodwill and intangibles.
Question 1: What are the consequences (regarding title insurance) of valuing the trailers at less than fair market?
Question 2: Does the suggested split of of real estate, intangibles/goodwill, and personal property values make sense?