kitchen appliances

So, you have a client inquiring about their kitchen appliances before having their house listed for sale. Should they invest in all-new appliances? Do they have to include their appliances in the sale? Is this even a good time to purchase a new refrigerator? These are all important questions that every home seller should ask and know; they’ll be looking to you for answers and clarification to make the best decision for their home.

This guide will help you help your clients decide what to do with their kitchen appliances and if an upgrade is worth the investment.

Should kitchen appliances stay or go?

There’s no rule stating appliances have to be left behind and included in the sale of a home. Perhaps a homeowner isn’t ready to part ways with their sub-zero refrigerator featuring wifi capabilities, or their new destination doesn’t come equipped with appliances. Either way, it’s perfectly fine. As long as your client communicates with you about their intentions, you can update the listing accordingly.

Should homeowners upgrade their appliances?

Are the appliances just a few years old and in good working order? If the answer is “yes,” then homeowners don’t need to worry about replacing them. However, if they want to improve a home’s value and have it sell a bit faster, investing in brand-new kitchen appliances may not be such a bad idea. A new refrigerator, range/oven and dishwasher can increase a home’s value by 3 to 7 percent, according to Consumer Reports.

Appliance

 

Average Cost
Refrigerator

 

Stove & Range

 

Dishwasher

 

Microwave

 

Range Hood

$425-$10,600

 

$410-$7,500

 

$400-$700

 

$50-$2,300

 

$45-$2,450

As you can see, prices vary on appliances, with refrigerators and stoves costing the most – this doesn’t include installation pricing, which can run in the hundreds to even a thousand dollars. At the end of the day, the math needs to work out. Will investing in these items, 1) sell my home more quickly? and 2) allow me to recoup those costs and actually gain value after selling?

Ask yourself: Whom are you targeting as a potential buyer? If it’s a younger individual who happens to be a first-time home buyer, you may want to recommend investing in all-new appliances to ensure the house is move-in ready. Plus, they’ll appreciate new appliances that’ll save them on the monthly electric bill.

If your client is upgrading their appliances, is this a good time to do so?

This shouldn’t come as a surprise – it’s 2020 after all – but there is a run on some household appliances. The current dilemma started months ago when people began stocking on food, causing a shortage of freezers and refrigerators. Then, manufacturers significantly scaled back production to limit the number of employees working together for safety coupled with predictions of lower consumer demand, and you have quite the shortage now. If your clients are considering updating their current kitchen appliances, it’s important they place their orders ASAP, as there are backlogs on several brands and models through the end of this year and into early 2021.

New kitchen appliances can be a nice addition to any home on the market, increasing its look and value, especially for buyers that don’t currently have those items currently. If any of your clients are looking to upgrade, recommend keeping things simple and within the scope of their budget to ensure the investment pays off in the long run.

*Not all borrowers will qualify. Contact us for more information on fees and terms. Not intended as legal, financial, or investment advice. Contact your financial representative for more information.

DiClerico, Daniel. “8 Ways to Boost Your Home Value.” Consumer Reports. February 2016. https://www.consumerreports.org/home-improvement/8-ways-to-boost-your-home-value/

“How Much Does Appliance Installation Cost?” HomeAdvisor. Accessed September 29, 2020. https://www.homeadvisor.com/cost/kitchens/install-an-appliance/

“Home Buyers Face Another Shortage: Appliances.” National Association of Realtors®. September 2020. https://magazine.realtor/daily-news/2020/09/24/home-buyers-face-another-shortage-appliances