Should I include appliances already bought or offer a credit for them?

Question

I've usually been buying and including the kitchen appliances in my flips. (fridge, range, dishwasher and usually an over-the-range microwave, at least on the more expensive ones) I do this for a few reasons, mainly because I think that usually when people move to a new house, they want to leave their old appliances behind and moving into a freshly rehabbed house with brand new appliances is a real turn on for a lot of buyers. I also think that just as many of us rehabbers/flippers have noticed, a staged house seems to sell more quickly than an empty house and to me, a kitchen no matter how nice, without appliances has the same look as an empty, unstaged house.

Yet, at the same time I have some questions if this is the right way to go too. I've always been buying stainless appliances because that seems to still be the "hot" item these days, although I know some people still buy them in black, white or whatever color as well. I'm also looking at appliances right now for two houses I'll be putting on the market soon and I was planning on going with a side-by-side fridge for both houses, they're both what I'd call middle of the market houses for my market (listing for probably $260k and $170k respectively) but then I wonder if I should spend more and get french door fridges, which also seem to be the hot item these days, but cost considerably more than a comparably sized side-by-side fridge.

So, with all of these questions, I wonder if I should just list them without appliances and offer a credit towards new appliances for the amount I would've spent on them, so buyers could pick out exactly what they wanted. I tried that once before and the house was slow to sell and it was a bit of a work to work with the buyer to get exactly what they wanted.

Just wondering what others are doing as far as kitchen appliances go-should I stick with picking them out and having them installed when it goes on the market, which I've been doing, or maybe offering a credit towards the appliances of the buyer's choice?

Steve Babiak · Answer

Check out the kitchen photos that are on the MLS near your properties and priced similarly to yours; that should give you an idea of what your potential buyers are going to see. Then do at least what you see elsewhere.

John Moore · Answer

In a few instances I supplied washer and dryers as I found them in such good condition and at such a low price I felt I had nothing to loose and everything to gain. Including them made such an impression and at such a low cost. All of the items were in like new condition. I attempt to sell the homes as quickly as possible and these little "inclusions" cut down on advertising and carrying costs. Food for thought.

Ophelia Nicholson · Answer

I think it really does depend on what is expected in your marketplace. What are your competitors doing? Are they listing it without appliances and offering credits? Will it hurt your sales to not have them when the buyer visits?

For my houses I always have a French door, I almost never put a microwave because I have the wall mounted vent hood over the stove. My latest rehab will be the first one that I put both a microwave and the wall mounted hood. I think that the kitchen is the place to spend money- If buyers feel like you spent more money in key places they feel you spent more money for the whole thing.

John Moore · Answer

The flips I become involved with are usually missing the appliances and I have to replace them. I put the replacement cost into my selling price. I have been lucky replacing them. On a few of the houses I replaced them with like new appliances from Craigs list, all matching appliances with same name brand. If I can't get them "like new"I will search for the appliance package on sale. I have been putting in stainless steel, double door refrig, flat top stove, microwave and dishwasher all by the same manufacturer. I have found that it is far easier to sell with the appliances included and in my area it's expected. I avoid attempting to have any hidden experses. (Surprises).

Chris Escamilla · Answer

For rentals I buy the stove and fridge through the Pennysaver (a weekly publication where I am located). The person I usually go through gets “like new” units about 1 yr old and they are fairly nice. Depending on the rent I am asking and location of the property, I will put in Stainless or regular equipment. Since I have bought multiple units, the vendor gives me good rates.

For units rehabbing for sale, I ask my vendor to “loan” me units (stove, fridge, washer dryer). None of the items are hooked up. All potential buyers are informed that these are “display” only. When it comes to close, I give people the option of purchasing the display units or I give them my vendor’s info so they can purchase their own. Most buyers take the displays, some opt to pick their own style, and few have decided to go their own way. Overall this process has worked well for me, my vendor is happy, he makes a little more money, the properties show well and I make a little more money, and if there is ever an issue he comes out and takes care of it. So far everyone is happy:)

Ramon Jenkins · Answer

@Robert Taylor I notice the same thing this past weekend

Robert Taylor · Answer

@Jenkins Ramon-I of course heard about the American shutdown as well, but I had a couple of friends who've already gone there "bargain hunting" and have said that the bargains are few and far between!

Ramon Jenkins · Answer

" The guy I work with at the local retailer was more than happy

to match Best Buy's price on that and they deliver quick "

@Robert Taylor

Fyi : American TV announce closing business down :(

Supposedly they our having huge discount on purchases

over next few days.

Lynn McGeein · Answer

No answer, just a question to clarify. When you say you want to offer a credit for appliances, does that mean you let them pick it and install it before closing? Or does that mean you sell it without appliances and they get the funds to purchase at closing? Just wondering as I know most mortgage companies will not lend without certain working appliances, not sure about dishwasher but definitely need to have an oven installed and working or they don't consider it habitable (at least the lenders we've worked with), so could be a problem if your buyers need a loan. As far as the french door fridge, the first time I saw a friend's dog scoop up ice cubes from the bin every time they opened the bottom drawer, I was convinced never to purchase one. Friends who have them don't like them within months of getting them (space issues) so I stick to side-by-side.

Robert Taylor · Answer

@John Moore-That's an interesting idea I'd never thought of before. I did have one house I sold that came with a used but in decent shape washer/dryer pair in the basement. So, I left them in there and sold them with the house and it was a pretty expensive house. I'll have to think about that because I was just looking at some used ones on craigslist for one of my rentals and there were a good amount of them that looked decent or better for not a lot. Many of them were under $300 for the pair, some even well under that.

In one of the three houses I will be putting up for sale soon, I was thinking of putting in a "laundry room" in the basement, just because its an old brick basement that even when its all cleaned out, still doesn't look like anywhere you'd want to spend ANY time at all, even just to load and unload your laundry. I figured I could put up some drywall and whatever else to make a little laundry room on the cheap, maybe a washer/dryer would be good too, if I find them at the right price!

Should I include appliances already bought or offer a credit for them?

Should I include appliances already bought or offer a credit for them?

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