New construction with no appliances

[alison woods]

I'm the listing agent for a house that is new construction. The builder/seller (an independent guy, not a big company) wants the buyer to purchase their own appliances and is offering a credit for them instead of installing them. The agent representing the buyer is insisting that the house cannot be financed without at least a stove in place. An appraiser friend tells me that he often appraises new construction with no appliances and that it is not unmortgageable in that state.

Can anyone tell me of their experiences with this? Does the seller have to put in a stove (or any other appliances)? Are lenders behaving any differently about this issue with the market's recent downturn?

Thanks for any info.

 

[Tim Hicks (Texas)]

Many times a free standing stove is considered personal property just like a refridgerator. Is it typical in your market for homes not to have a built-in stove? dishwasher?

An appraiser can certainly appraise a house with no appliances. It would be part of their scope of work to determine the value or no value of the missing appliances.

Houses must have a heat source according to most lenders. They say nothing about stoves, dishwashers or garbage disposals.

 

[Mike Kennedy]

Appliances = Chattel.

 

[Jason S]

There is tons of new const. in San Diego. Typically once the flooring is in the lenders were fine with it. We never had any problems (conditions) without appliances.

 

[PropertyEconomics]

I think they can cook on a grill if they want. Many builders dont put in appliances until the end any way because they get stolen.

The builder in this instance is not very smart ... add $2000 to the selling price, let the buyer finance it, install appliances the day of closing ... this isnt freaking rocket science ....

Where to the realtors and builders come from these days. I swear everyone does what they can to screw up a deal. How do they even have a business????

 

[The Warrior Monk]

Appliances are not usually considered part of the real property. However,, some municipalities require a stove to be present in a home in the home in order for a Certificate of Occupancy to be issued.

 

[Lobo Fan]

I am pretty sure that FHA requires a cooking source to be considered an SFR. After that, it is up to the individual lender. We have a couple of builders that don't put in the front landscaping or the appliances until the very last moment.

You can do is subject to appliances being in place, or just work around it. I don't think it is a hard and fast FNMA thing.

 

[Mike Boyd]

I consider appliances to be an option with new homes. Most builders include them out of custom or tradition, but if you have a house where they are not part of the original package and they are selected as an option, you would have to treat it as any other option. You would have to make the report subject to installation of same or as is by deducting the value of what is not included compared to the comps.

 

[tjvetrone]

most appraisers including myself and company dont worry to much about appliances due to sometimes they are stolen if installled. if it is reasnoably close and a good client offer to do a final inspection for free to get the deal done and paid....

 

[Peter LeQuire]

Appliances v. no appliances? Isn't that what the adjustment process is all about?

I don't believe HUD requires appliances for its regular programs - that's why the instruct the appraiser to note whether the appliance(s) is in/on the property (mark the little box with an "X" if it is and is considered in the appraisal); mark the little box with a "P" if the appliance is in place but is not considered in the appraisal (as one would do if, for instance, had not included the refrigerator in the appliances listed on the brief); leave the little box blank if the appliances is not in/on the property.

Municipal requirements are another issue entirely.