Should I Buy New Appliances Before Selling the House?
A matching set of brand new appliances could entice buyers to make an offer on your home. But is it worth the money?
Gleaming appliances that work like a charm can be a huge selling point for a home on the market. If you aren’t sure about that, imagine how a kitchen with dated, yellowing appliances compares! But even if your appliances leave something to be desired, replacing a whole kitchen’s worth is no small purchase. A new refrigerator, range/oven, and dishwasher could cost anywhere from $2,000 up to more than $10,000, and the average price tag for a new washer and dryer ranges from $1,100 to $2,000.
Does it make sense to invest in new appliances before putting your home on the market? We spoke with a top real estate agent and some home appliance experts — and dug into some recent industry research — to find out how to know when your appliances are on their last legs, what impact appliances have on a property’s value, and how to select the right replacements for your home.
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How to know when an appliance should go
It’s one thing if your appliances are a little dated but will still heat up a frozen pizza or keep your groceries cold like they’re supposed to. But a broken appliance is another story. Before you sell your home, you’ll either need to repair or replace any broken appliances unless you plan to disclose the issue to buyers upfront, says top-selling Georgia real estate agent Justin Woodall.
Leah Kalemba, a home appliance expert and Senior Trade Marketer at BSH Home Appliances Group, notes these top indications that it’s time to upgrade your appliances from a functional perspective:
- A high electricity bill:
Appliances are responsible for around 13% of a homeowner’s energy costs, and older appliances tend to consume more energy. If buyers are concerned about keeping utility costs down, a kitchen full of brand-new, energy-efficient appliances could be a strong selling point. - Age:
Shirley Hood, an appliance specialist with Abt Electronics, says a good rule of thumb is to replace an appliance if it’s more than 10-12 years old and if it’s not cooling (refrigeration), cleaning (laundry or dishwashers), or heating (ovens or microwaves) as well as it did when it was new. If you’re not sure when your appliances were manufactured, check the serial tag to confirm the age of the units. This appliance life-expectancy chart can also help you gauge when a unit is living on borrowed time. - Cost of repair:
“If your unit requires a repair that exceeds half the value of the appliance itself, it might be smarter to invest the money in an upgrade if you are able,” says Kalemba. Also, if you find that an appliance has required multiple service calls or if you have started to rely on “creative” ways to keep it working — such as unplugging and replugging it in to get it to start — it’s likely time to look into investing in a replacement, says Hood. - Signs of malfunction:
Even if your appliance is still within its typical life expectancy period, certain telltale signs might indicate that it’s on its way out. For instance, Kalemba says if your refrigerator is noisy, has dramatic temperature swings, or causes condensation or frosting of the contents, it might be due for repair or replacement. For a stove or range, the signs might include the inability to preheat within a reasonable timeframe, visible damage to surfaces, or permanent baked-on stains that cause odors.
Do new appliances increase home value?
Although Woodall says home appraisers won’t assign a great deal of value to appliances, they will check that they’re in good working order. He also notes that most lenders require that a home has a functional kitchen before approving financing of the loan.
Kalemba points out that appliances are typically the focal point of the kitchen. Choosing the right ones can directly boost the home’s “wow factor” for buyers and could provide the nudge they need to make an offer.
“It’s just one less thing the future homeowner has to take care of,” Hood points out. “If you looked at four homes in your desired area, all relatively in the same condition with similar square footage, and you noticed that only one of the four had brand-new appliances, chances are the home with the newer appliances would be the deciding factor in the purchase.”
Consistency is also important when it comes to boosting your home’s value with new appliances. If possible, they should all be the same finish, brand, and age, and should complement the style and appearance of the rest of the home.
It’s also important that they are clean and in good condition, which will help give prospective buyers peace of mind that the other, less visible components — such as the water heater, sump pump, and HVAC system — have been equally well-maintained.
