Refrigerator?

Question

I am putting my 3/2 sfr up for sale in a few days. It has a brand new stainless steel sink and faucet, a newer dw, a used smooth top stove, and no fridge. Will it sell better, faster, higher, with a fridge? The one I'm taking is old, at least 10 yrs, maybe older. I wasn't planning to get one for it, thinking buyers would have one. 
15 yo hoa, middle class neighborhood.
Thanks

J Scott · Answer

I can't tell you the number of times I've had buyers tell me how excited they were that they could find a house in the lowest price range that was completely move-in ready.  And by move-in ready, they meant all appliances, washer/dryer, mini-blinds on all windows, shelving in all the closets, working garage door remotes, garbage disposal, etc.

In my opinion, the extra $1500 it takes to get a house from where a typical rehabber would sell it to where it is absolutely complete is very, very much worth it.  I'm always willing to spend an extra $1500 in order to get a quick sale, a buyer who never second-guesses his decision during the closing process, and agents who ask us to PLEASE let them know the minute we have more houses on the market -- in fact, it's a no-brainer.

Throw in fact that appraisers are always very impressed with the extras we throw in -- and keeping appraisers happy is worth thousands in my book -- and the benefits are even more obvious.

So, in my opinion, for any house that will likely go to a first-time homebuyer, a fridge (and everything else that makes a house truly move-in ready) is a must-have...

Just my business model...

Jeffrey K. · Answer

Jason is right.  I don't flip houses, but his point is simple.  You are selling a lifestyle and for many a dream come true.  A lot of first time home buyers are worried about appliances and even paint colors!

I see this every day when you watch house hunters on HGTV.  Spend some time watching that show and you will gain some insight into what home buyers look for.

J Scott · Answer

From a negotiating standpoint, I want my potential buyers to become emotionally invested in the property BEFORE they ever see it.  We make sure that the listing captures the buyer's attention (professional photos, staging, mention the free appliances and washer/dryer) and also captures the agent's attention and gets them emotionally invested upfront (we always offer a bonus to the buyer's agent and put that on the MLS).

If you can do this, the rest is easy.  They've decided they love the property before they step foot in it (both the buyer and the agent), and assuming they decide to put in an offer, they're almost always willing to come up close to full-price.  So, additional negotiating incentives -- like throwing in appliances -- aren't usually needed.

In fact, across all our properties, our average sale price to listing price ratio is over 95%.  And we generally get our first offer within the first 3.5 showings.

I'd rather use the benefits of the property to get an emotional commitment upfront than to use it as a negotiation tool on the back end, as it's not generally needed at that point.

That said, sometimes we use the staging furniture as an incentive ("If you give us a full-price offer, we'll throw in the couch and love-seat that you're asking for...").

J Scott · Answer

Agreed.  And not just the convenience, but the cost...

Many of buyers are putting down much -- if not all -- of their free cash for the downpayment and closing costs of the purchase, and if they have to spend another thousand or two on essentials, they may not be able to afford the property.  Would hate to lose a buyer over a thousand dollars or two...

Robert R. · Answer

I know this thread is a bit old, but I thought I would throw my 2 cents in. In the Northeast, a fridge and all appliances are expected. Even though they are listed separately in sales contracts, they almost always stay. Granted my experience is with house/condo sales in the $200-$400K range.

Having grown up and lived in the Northeast for 28 years, I think the mindset is that it is "cheap" for the seller to remove a couple thousand in appliances. Furthermore, one would feel it would be frivolous to buy a house and then buy new appliances, as one certainly didn't take them from the previous home.

C L. · Answer

I strongly agree that at the lower end of the market, most buyers expect and need the home to have a refrigerator.  First time buyers often buy homes with a gift as their down payment, so they are really short on funds.  And these days, mortgage applicants must be careful with using credit cards before closing because credit will be pulled again and they don't want to lose their qualification.

That means if they did intend to use credit to buy the fridge, they could be a week w/o it.

I knew a guy who installed mini-blinds at all the windows since he felt that having to fit 14 windows might turn away some buyers.

If your market is such that most homes do not come with a fridge, then if yours has one, you have an automatic one up.

J Scott · Answer

Jeffrey -

Thank you for stating in one sentence what I was (unsuccessfully) trying to say in multiple long posts...   :D

Nick Henson · Answer

Great idea Wheelhouse! All in all, I think not having a refrigerator just makes buyers think of how much more they have to spend to live in the house. Smart ones already are thinking about utility estimates, any extra furniture or fees they have to pay. In the scheme of things, the cost of a fridge is small enough to wipe out the worry.
Good Luck!

Justin S. · Answer

J Scott

Have you offered them as a bonus?  Like offer accepted within 30 DOM gets a free fridge?

Account Closed · Answer

It seems to be a regional thing.  In the Pacific Northwest the house with no refrigerator would take longer to sell and might be discounted because the vast majority of properties have refrigerators.

I tend to think many buyers would appreciate the convenience of not having to worry about a refrigerator.

Refrigerator?

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