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Appliance for the Kitchen, when and how to adjust?

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Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
What do you consider for built-ins for a kitchen?

Something that is really built-in where cabinets are totally built around the subject appliance and you would need to remove some part of the cabinet structure or trim/molding, lift out the cook top and it would leave a hole?

Or do you consider built-ins as something that could be slid into a space and out of a space with out any removal of cabinets or trim/molding?

In the box check area, when do you check x for the items, when they are built-ins, where they are slide ins?

What do you check or not check when the subject is missing any of the kitchen appliances? Do you note it in your appraisal?

When do you consider appliance part of the real property and not personal property?

If you consider them part of the real property, how do you adjust for value, when the subject may have commercial type appliance and a large kitchen and the MLS says the comparable sale has a standard kitchen?
 
I would consider built-ins that are installed with not casings/shells as in microwaves, dishwashers, they are installed hard wired. Slide-ins including both above but do have casings/shells, as-in refrigerators, stoves. I would consider them personal items, as someone could change them somewhat easily.

Now when I come across kitchens with commercial grade appliances, gourmet style kitchens, I would look for the same, if none are found it maybe an over improvement for the neighborhood. If that were not the case then I would grade is as a superior kitchen and make my adjustments like any other superior line item adjustment.
 
I've always considered a 'built-in' something that, by it's removal, would cause damage to the real estate. Cooktops are built in, free standing ranges (including gas) are not. Sometimes custom kitchens with refrigerator and dishwasher fronts matching all the cabinetry can be a bit tricky. Walk-in freezers and professional dishwasher 'systems' (like those found in restauraunts) would be built ins. Unless the commercial grade components are 'built in' I would consider them personal property. If they're not built in they don't get valued. Keeping to the differences between personal property and real estate helps solve many questions. If there is personal property in the contract note it exists but not valued. If you find that inclusion of personal property has affected the subject or comparables sale price you need to disclose, disclose, disclose and when applicable or when you don't have any better choices, include supporting documentation, preferably in writing from a personal property appraiser, as to the market value of the personal property. Try finding other comparables before using ones that have been affected by personal property inclusion. Make sure your client is aware of the situation. I did a farm sale once where a used combine was included as personal property. Needless to say the lender/client did not want to loan on the combine under the same terms as the mortgage. I'm pretty sure the borrower did end up getting a mortgage on the land and a second, rather high interest rate, short term loan with the combine as collateral.
 
Built-ins: Drop in Cook-top, wall ovens, vent hood, dishwasher (fixed), trash compactor (fixed), Microwave attached to cabinets, etc.

Not Built-in: Range/stove, dishwasher (portable), trash compactor (portable), countertop microwave, etc.
 
Something that is really built-in where cabinets are totally built around the subject appliance and you would need to remove some part of the cabinet structure or trim/molding, lift out the cook top and it would leave a hole?

Builti in appliances in my market are, by my standards, drop in stove top, oven in the cabinets, dishwasher, disposal, trash compactor, above the stove microwave, and in very rare instances fridges are included to.

Or do you consider built-ins as something that could be slid into a space and out of a space with out any removal of cabinets or trim/molding?

These I consider built ins.

In the box check area, when do you check x for the items, when they are built-ins, where they are slide ins?

for built ins I put a X, for free standing I place a P (Personal Property)

What do you check or not check when the subject is missing any of the kitchen appliances? Do you note it in your appraisal?

I only care about what is there. I never value the personal property and seldom if ever put a value in the grid for built in appliances. I consider them either a plus for the selling price or a negative to the selling price/DOM.

When do you consider appliance part of the real property and not personal property?

Built in are part, stand alone like fridges and most stoves are personal property.


If you consider them part of the real property, how do you adjust for value, when the subject may have commercial type appliance and a large kitchen and the MLS says the comparable sale has a standard kitchen?

I've seen sales with Viking appliances, usually upper end of the value range. Most comparables will have something similar in my opinion, from years of looking at sales.

I take the road where a stove will cook up your lunch for $400 or $4,000 in about the same manner, make/model is your choice or your decision. The inclusion of top of the line appliances seldoms makes much difference in my opinion.
 
Gas Stoves, where required by code to be present for sale, I consider real property.

Built-in refrigerators, like the Sub-zero type, are real property.

Stove tops built into the counter are real property.

Wall ovens are real property.

Breadwarmers and wine coolers that are built in are real property.

Built-in DW without hardcasing is real property.

Stove built-in (usually of oven) and hardwired, is real property.

Disposal is real property.

Trash compactor built in is real.

For these items I put an "X" in boxes.

Other items are personal property and I put a "P" in the box. They include:

Portable Dishwashers

Electric stoves

Stand alone refrigerators

Stand alone microwaves

Stand alone wine coolers

I handle quality of the kitchen as part of the overall quality of the house. Maybe my house has better appliances, but a comp has better cabinets and coutertops. I look for something that offsets and consider quality as a whole, making adjustments where necessary - most often on a per square foot basis. It all depends on the comps and the market.
 
If it take 5 minutes or more to get out and requires multiple tools,..... built-in.
 
Built in appliances in GA are: Range/oven, microwave, and dishwasher. A refridg is personal property in GA, but many sales include it anyway. I put a refridg in all of my lower and mid price range houses because the market expects it... and I'm not going to let a $800 appliance keep me from making a deal. To not include an $800 fridg today will cost me another $900 interest payment for 30 more days of marketing.

As for quality, most upper price range homes have similar quality kitchens. But if one is soooo much more deluxe, I might make an adjustment... but not much. Really fancy kitchens are one of those "because I wanna" things. Not too many people are willing to pay extra for a chef kitchen when a standard will do.
 
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