The Hobbit

What happens at the end of the book?

I was so confused

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Gandalf and Bilbo pass through Rivendell and eventually make their way to Hobbiton. It is summer and Bilbo is disappointed to learn that he is legally dead. Greedy cousins, the Sackville-Bagginses are auctioning his property because he is "Presumed Dead." They are more than a little displeased at his arrival and it takes several years for Bilbo to sort out the legalisms. In fact, Bilbo had to buy back a good deal of his own furniture‹his reputation, for better or worse, was harder to reclaim. But as for Bilbo, son of Belladonna Took, "for ever after he remained an elf-friend, and had the honour of dwarves, wizards, and all such folk as ever passed that way.