Would appliance-ing an entire house sell it quicker? - Posted by Tom Nagle PA

Real Estate Investing
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Posted by Dave T on May 14, 2000 at 23:55:17:

In your case, with the utility room in the basement, it will be very difficult to get a full size washer/dryer down the spiral steps. Go ahead and put in the washer/dryer to eliminate a potential negative issue with your property.

If your property is fairly priced, I suggest that what will make your property sell faster is your flexibility on terms. Owner financing with an acceptable down payment, or, an attractive lease purchase agreement will probably do more to help your property sell faster than your competition.

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Would appliance-ing an entire house sell it quicker? - Posted by Tom Nagle PA

Posted by Tom Nagle PA on May 14, 2000 at 21:43:22:

Hi folks -

I am doing rehab # 4 for the year. This is a small row home in a nice area with a good school district. The house has a small bathroom - the room is the lenght of the bath, and there is a 2 ft span on the side of the tub in which the toilet and sink sit. . I know that baths sell houses - this one is full and clean, just small - and I was trying to think of other ways to make the house attractive to buyers.

The house has been painted and carpeted (is going to be carpeted this week) and new windows have been put in. I have to buy a new range for the place and was toying with the idea of getting a fridge and a washer/dryer set too. For around $1000 I can buy a new range, fridge, washer, and dryer from American Appliance. This house is a starter home and I thought it would sell faster with all the appliances. I only thought about getting the washer and dryer ($348 a pair) because the spiral steps into the basment are a little tight and would be easier to get down before the rehab gets completed.

Has anyone had a similar experience with using appliances to sell houses? I have put in fridges to seal a deal but that has been the extent of it in my experience. Let me thank everyone for their responses in advance.

Sincerely,

Tom Nagle

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Re: Would appliance-ing an entire house sell it quicker? - Posted by Jim IL

Posted by Jim IL on May 15, 2000 at 23:56:56:

Tom,
When it comes to appliances, I had never offered them up front until recently. (lately, I am moving and do not want to lug any more than needed to my new home.)
I would buy homes, and pull them out, keeping them in my garage. If the buyer needed a push to sign, then I may offer to “throw in appliances.”
Then I’d head to the garage collection, and get some that matched moved over.
On one occassion, a couple that was L/O’ing from me said they could only put up $4k option money, because they had $5k and needed the other $1k to buy appliances.
I told them I really wanted $5k, so I had an idea.
I offered to take there $4k option money now, and have them pay me $100 per month more during the lease term, as a seperate payment, toward the option money. This way they would have the cash to buy the appliances.
They agreed, and we signed them up.
Then, your gonna love this, I told them my brother sold used appliances, and I’d have him call them if they’d like, he could get them a good deal.
The used appliances were actually mine, but I did not want them to feel they were giving all there money to me.
So, my brother called them and agreed to sell them a refrigerator, stove/oven, washer, dryer, and an above the stove hood range microwave, all matching in white color.
He said he needed $1500, and they bartered him down to $1200.
He then came to my garage, collected the appliances in his truck and delivered them, gettting the cash.
He then came to my home again, and gave me the pre-agreed upon $1000 and kept the $200 for his trouble.
And, this is REALLY funny, the appliances they bought, they were the ones in this home when I bought it, so I got em free.

Now some may jump on me for this, and say it was sneaky, but what the heck, I had product and they were buying.

Don’t ask me how this is supposed to answer your question, I kinda got long winded there.

Take care,
Jim IL

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We Don’t - Posted by Hugh James

Posted by Hugh James on May 15, 2000 at 11:40:23:

We used to, and we found that buyers often wanted something other than what we had already installed. If it’s an issue, we’ll offer an appliance allowance as an incentive. Ballpark it’s 1/2 the retail of the most basic appliance. Example: $200 allowance for a refrigerator. Many of our builders in the area wouldn’t go more than $150 for a refer.

We always try and include a built in dishwasher. I get a nice Hotpoint delivered for $180. Ladies seem to appreciate it. If possible we’ll also include a garbage disposal, and always a new counter top and sink even if we’re keeping the cabinets. I’m big on deluxe faucets too, with a sprayer. I think it draws the eye and attention of the buyer away from any other “sins” we may have going on. One last note: If it’s possible, we always throw in a non-vented range hood. Colors are $30; stainless steel about $50. It really dresses the stove area up and adds a light.

Hope this gives you an idea or two.

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Re: Would appliance-ing an entire house sell it quicker? - Posted by eric

Posted by eric on May 15, 2000 at 09:56:28:

an experienced investor in my area once told me “Never put a refrigerator in a property”. His reasoning was that the buyer would object to that, to which he responds, “ok, if I throw in a fridge, can we sign the contract today?” then goes and gets a used fridge for 200 bucks or whatever. A small price to pay for a faster sale. Something to think about.

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Re: Would appliance-ing an entire house sell it quicker? - Posted by JPiper

Posted by JPiper on May 15, 2000 at 01:47:38:

I don’t put appliances in rehabs…not even stoves. I am willing to help with closing costs, perhaps carry some financing, etc. I suppose I would put in some appliances if it came down to it in a negotiation…but I haven’t found this to be the case typically. Usually with the buyers I have, what’s more important is getting them qualified and into the house…which I facilitate by carrying a note, or paying some of the closing costs.

JPiper