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Update Kitchen Appliances or Give Credit to Buyer? What is Smart Strategy?

By
Real Estate Agent with Samson Properties VA0225077251

Zillion of times as a Northern Virginia Realtor, I have shown homes where the appliances are stuck in time. It may be as old as 70's to early 2000. When buyers walk in the home they immediate think about expenses that, they may have to incur to update the kitchen, which is heart and soul of the home.

So here is a million dollar question: As a  Northern Virginia home sellers should go out and spend money to update the kitchen appliances or just sell AS IS or give credit to the buyers?

Answer will depend on your age of the home. If you home is built is 90s you have updated the flooring, counter tops but just have dated appliances it may be worth to update it. That will uplift the entire kitchen look and give you an advantage in the real estate market.

If you home is entire stuck in the 80s then you would be better off pricing your home reflecting the updates the buyer may have to spend.  One of the other strategy would be to check out the competition in the area. If there are ample of homes with all the bells and whistles of updates, you may not have much choice but to update or discount the list price.

OR say your home faces competition from new construction in area (example homes in Ashburn Loudoun County). You will have to either update or go low on the price or have something more to offer to withstand the competition in the area.

Remember if you home is targeted to first time home buyers they may not know how much it will cost to update the kitchen, or have funds to update or biggest challenge we have is TIME! They may discount heavy for their inconvenience.

Best way to approach this would be to budget how much funds you have to update, time needed and the local market condition. Discuss with your local Northern Virginia home Realtor to help you navigate this decision.

 

Photo  http://pixabay.com/en/cooker-stove-retro-pink-household-295135/

Posted by

 
                             
Associate Broker
MRP, ABR, ePRO

NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties
Cell - 703-625-4949
Email - info@eNOVAHomes.com
Web: www.eNOVAHOMES.com
 
Residential real estate agent serving Northern Virginia in Fairfax & Loudoun county over a decade and almost $100+M in sales volume experience. 


 

Comments (38)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I always say a home should put its best foot forward, so if a seller is willing to pay a buyer to buy new appliances, put them in and sell the home with upgraded appliances. The question is really to what degree to update and how much money to spend.

Aug 29, 2014 02:41 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

I work with buyers all the time.  Some are very spoiled.  They want, they want, they want.  If the home is priced for condition, maybe the buyer would be better suited to up their price point and buy the shiny new toys.

Aug 29, 2014 03:31 AM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

Lots of good responses and food for thought here.  I don't think there is a clear rule to follow.  Consider all factors and make the decision on a case by case evaluation.

Aug 29, 2014 06:02 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I've actually had new appliances be part of an offer.  The buyer didn't have funds to do it, the seller had new appliances delivered the morning of closing and they were priced into our offer.  It worked for everyone.  The sellers waited to order until buyers loan was blessed by underwriting. 

Aug 29, 2014 08:04 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

It does depend, but many times buyers won't like the seller's choices, so that is something for a home seller to consider. Might be better to sell AS-IS and price accordingly.

Aug 29, 2014 08:19 AM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I would suggest that the sellers get some updates within their budget.  There are often sales on appliances.. and it really will make a difference in attracting buyers.  A good investment which will make a home much more marketable.

Aug 29, 2014 12:40 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Ritu, you are right - if the appliances do not go with the decor of the home, it better be replaced instead of giving credit.

Aug 29, 2014 01:29 PM
Eddie King
Keller Williams on the Water - Sarasota - Venice, FL
Serving all of Sarasota and Charlotte Counties, FL
If you put the right appliances in the home along with a couple other touches in the kitchen you could easily get double what you spent back on the sales end. This all depends of course on how well the home was priced in comparison with other comparables to begin with. Lets face it, some buyers will turn and walk out of a home if the kitchen and bathroom do not appeal to them or are not current and updated, much less give you an opportunity to get a credit. Getting a credit means work for them, which is not something most people want.
Aug 29, 2014 02:09 PM
Eddie King
Keller Williams on the Water - Sarasota - Venice, FL
Serving all of Sarasota and Charlotte Counties, FL
If you put the right appliances in the home along with a couple other touches in the kitchen you could easily get double what you spent back on the sales end. This all depends of course on how well the home was priced in comparison with other comparables to begin with. Lets face it, some buyers will turn and walk out of a home if the kitchen and bathroom do not appeal to them or are not current and updated, much less give you an opportunity to get a credit. Getting a credit means work for them, which is not something most people want.
Aug 29, 2014 02:09 PM
Eddie King
Keller Williams on the Water - Sarasota - Venice, FL
Serving all of Sarasota and Charlotte Counties, FL
If you put the right appliances in the home along with a couple other touches in the kitchen you could easily get double what you spent back on the sales end. This all depends of course on how well the home was priced in comparison with other comparables to begin with. Lets face it, some buyers will turn and walk out of a home if the kitchen and bathroom do not appeal to them or are not current and updated, much less give you an opportunity to get a credit. Getting a credit means work for them, which is not something most people want.
Aug 29, 2014 02:10 PM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Gosh, if the house has a pink stove, I suspect it is the least of your worries. If a seller has the funds, I suggest he make updates. Otherwise, he may have to list the property below market value to sell.

Aug 29, 2014 02:29 PM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

price like everything is the main factor. Most of the older homes you see have been updated. Lots of factors to determine the price.

Aug 29, 2014 02:32 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

In my experience as well that it's always better to get an absolute expert who knows multiple models and multiple lifespans of any appliance.

Aug 29, 2014 03:10 PM
Stacy Ann Stephens
Keller Williams Realty CT - 860-704-9070 - Wallingford, CT
Realtor, New Haven & Hartford CT Homes For Sale

Ritu,  I find that unless they see it, even if you tell them a credit will be given, they are already discouting the home. If the owner can, I would say upgrade the appliances. We only get one change to make a first impression. 

 

Aug 29, 2014 10:07 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

This is great information for sellers trying to decide between replacing appliances or giving a credit.  Each situation is different and you hit the nail on the head.  

Aug 29, 2014 10:12 PM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Zillions? Whoa that is a lot. Talking your ear off, good you have two. Depends on the market, low cost rural means leave the kitchen be. Just quick occupancy, clear the trash, and tidy up. We're done here. Your expenses are your profit and eating into them is no fun, not needed if you think market. Not personal preference of wouldn't it be nice. No harvest gold or avocado, brown, poppy red might be the order of the day. Deep six, evacuate them and keep moving if they are pretty scuzzy.

Aug 29, 2014 11:21 PM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Putting updated appliances into a home are dollars that are almost 100% recoverable to a seller and keeps the poll of buyers at their max. A first time buyer may not have the money to buy appliances and could pass on a home if that was a perceived issue

Aug 31, 2014 07:07 AM
Brian Force
Dallas, TX
Work With the Best!

Personally I'd upgrade rather than crediting. Keep the lender headache out of the equation and make the kitchen pop!

Aug 31, 2014 11:50 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Ritu

That's a tough question . . . . What I use as a baseline is if the current appliances would hinder the sale we suggest that they get replaced be the first showing.

Good luck and success.

Lou Ludwig

Sep 06, 2014 01:32 PM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

The appliances stay with the home here on Long Island and in some of the older condo communities Avocado Green was the sensation back when...Price usually reflects the age of the kitchen ~

Sep 10, 2014 09:59 PM