Home buying - seller said they can't get the right appliances in, offering credit..

[mugs]

Originally posted by: swbsam
Should I press them to install stainless steel appliances or what? My lawyer's greatly informative answer is "whatever you'd like, you tell me."

It's not your lawyer's job to decide if the credit is acceptable to you. If you want to insist on the builder installing stainless steel appliances, tell her to do that. Not sure why you'd want to do that though; if they're giving you a credit that would cover the actual cost of the appliances, you could pick whatever brand and model you want instead of being limited to what the builder offers.

$5000 for two stoves (I assume you mean ovens and not just cooktops?) and two refrigerators sounds reasonable. You could spend a lot more than that, but I doubt the builder would have spent more than that.

 

[sjwaste]

Take the credit and buy your own.

Otherwise, you're trading what might be a decent, but wrong finish, appliance for what will definitely be the lowest cost stainless appliance they can find. Even if you don't care, a potential buyer of your home will, and you will eventually sell it. Trust me, the people that sold me my home were not pleased when I asked for credits for all of the 20+ year old, barely functioning appliances, because I happen to like to cook.

Just because it's stainless and burns gas, doesn't mean it isn't a piece of shit that someone else will spot. It will either cost you now or later, and at least if you eat the cost now, you'll be able to enjoy it yourself for a while.

 

[mugs]

Originally posted by: sjwaste

Trust me, the people that sold me my home were not pleased when I asked for credits for all of the 20+ year old, barely functioning appliances, because I happen to like to cook.

I imagine they would be since you were apparently aware of the approximate age of the appliances when you made your offer.

 

[CPA]

Originally posted by: MikeyIs4Dcats
why do you need 2 kitchens?

why does it matter?

 

[swbsam]

Originally posted by: boomerang
I don't care what kind of appliances you want or what you intend to do with them and so on.

I'm still confused. Are the stoves going to be replaced? Have the sellers (builder) agreed to replace the stoves that are in there with SS? Assuming yes .....

On the refrigerators, are they going to have them in place when you close, or are they going to be your responsibility and are they crediting you $1000 per?

If this is the case as far as the refrigerators go, I say jump on the deal. You'll spend more but get better refrigerators. They're just offering to credit you with their out of pocket cost on two refrigerators. The refrigerators they put in will last 3 years at the most.

Sorry for the confusion:

1. The credit did not include the stoves, but I told our agent that we'd need them replaced too since we'd want everything to match and the original promise was for S.S. - he said that's fair and to present a number (the stoves were just there for our last walkthrough, that's what triggered the chain of events)

 

[alchemize]

You are buying a home? I'd demand the credit, AND the SS stoves, AND a handjob at closing.

 

[Corbett]

A good stainless fridge is at least $2500. I would tell him you want $5000 for the 2 fridges and another $2000 per stove.

 

[swbsam]

Originally posted by: sjwaste
Take the credit and buy your own.

Otherwise, you're trading what might be a decent, but wrong finish, appliance for what will definitely be the lowest cost stainless appliance they can find. Even if you don't care, a potential buyer of your home will, and you will eventually sell it. Trust me, the people that sold me my home were not pleased when I asked for credits for all of the 20+ year old, barely functioning appliances, because I happen to like to cook.

Just because it's stainless and burns gas, doesn't mean it isn't a piece of shit that someone else will spot. It will either cost you now or later, and at least if you eat the cost now, you'll be able to enjoy it yourself for a while.

How do credits like this usually work?
1. Is it a reduction of the total mortgage amount?
2. Is it a certified check?

#2 (or even a gift card to home depot) would work fine, but $5,000 off of the mortgage means.. What, saving a few pennies a month, while we'd have to spend or get financing for new appliances, paying whatever applicable interest off of that?

My point is, $5,000 "less" based on 5% interest is going to cost us more out of pocket than financing on appliances..

Does anyone know the norm in these situations?

 

[BudAshes]

I don't understand why people want stainless steal appliances. Is it for all the fingerprints they show?

 

[Gooberlx2]

I don't think taking a credit is necessarily a bad thing. Determine the amount by shopping around for reasonable appliances, SS if they have to be. You'll get that money back at closing, cash or certified check, to spend on the appliances and installation yourself.

Like you said, having that money bring down the purchase price of the house is dumb because it'll change your monthly payment by a trivial amount...and then you'll need to cough up $$$$ now for your desired appliances.

edit: more clear statements of the "credit" by other posters below.

 

[mugs]

Originally posted by: Corbett
A good stainless fridge is at least $2500. I would tell him you want $5000 for the 2 fridges and another $2000 per stove.

:laugh: Good luck with that

 

[sjwaste]

Originally posted by: mugs

Originally posted by: sjwaste

Trust me, the people that sold me my home were not pleased when I asked for credits for all of the 20+ year old, barely functioning appliances, because I happen to like to cook.

I imagine they would be since you were apparently aware of the approximate age of the appliances when you made your offer.

Approximate age, yes. Definite age, no. Ditto for functionality. That's why you pay a home inspector for that report.

In fact, had I fiddled with the stove when we went to see the home, one of the timer knobs would've fallen off and I probably would've been stuck paying to fix it. It was apparently superglued on for appearance.

Home sellers will do whatever they can to hide defects, especially in this market. No need to be a smartass. I did my due diligence and didn't get screwed. It works.

 

[Taughnter]

Originally posted by: swbsam

Originally posted by: sjwaste
Take the credit and buy your own.

Otherwise, you're trading what might be a decent, but wrong finish, appliance for what will definitely be the lowest cost stainless appliance they can find. Even if you don't care, a potential buyer of your home will, and you will eventually sell it. Trust me, the people that sold me my home were not pleased when I asked for credits for all of the 20+ year old, barely functioning appliances, because I happen to like to cook.

Just because it's stainless and burns gas, doesn't mean it isn't a piece of shit that someone else will spot. It will either cost you now or later, and at least if you eat the cost now, you'll be able to enjoy it yourself for a while.

How do credits like this usually work?
1. Is it a reduction of the total mortgage amount?
2. Is it a certified check?

#2 (or even a gift card to home depot) would work fine, but $5,000 off of the mortgage means.. What, saving a few pennies a month, while we'd have to spend or get financing for new appliances, paying whatever applicable interest off of that?

My point is, $5,000 "less" based on 5% interest is going to cost us more out of pocket than financing on appliances..

Does anyone know the norm in these situations?

A credit from the seller has absolutely no effect on your mortgage, unless you're getting a private 'mortgage/loan from the seller, in which case you'd have to ask them how they're applying the credit. It's also not likely to be a certified check (or any other sort of check).

A credit in a real estate transaction is exactly what a credit is in any other situation. You're buying the real estate, generally that means a down payment (deposit plus closing funds) and a mortgage loan which will be paid to the seller. Those funds add up to the sales price. Any credit you receive from the seller simply lowers your total price. Since you likely have arranged for a mortgage through an outside lender, your mortgage amount is what it is. The Seller's attorney should allow for a credit during the closing, though, and in most instances this simply lowers the amount of money you must provide at closing. Assuming that your mortgage covers the entire purchase price or that you already paid a big enough deposit to cover all of the closing funds, your attorney (or whoever else is collecting the closing funds) should issue you a check if you are owed any money.

As always, if you want to lower your mortgage payments, you'd have to check with them to see if the loan you're getting has a prepayment penalty or not. Many mortgage loans do not, so you could likely put it towards the mortgage, or do whatever else you want with it. The most likely result, though, is that you will simply have to provide less money at closing.

 

[sjwaste]

Originally posted by: swbsam

Originally posted by: sjwaste
Take the credit and buy your own.

Otherwise, you're trading what might be a decent, but wrong finish, appliance for what will definitely be the lowest cost stainless appliance they can find. Even if you don't care, a potential buyer of your home will, and you will eventually sell it. Trust me, the people that sold me my home were not pleased when I asked for credits for all of the 20+ year old, barely functioning appliances, because I happen to like to cook.

Just because it's stainless and burns gas, doesn't mean it isn't a piece of shit that someone else will spot. It will either cost you now or later, and at least if you eat the cost now, you'll be able to enjoy it yourself for a while.

How do credits like this usually work?
1. Is it a reduction of the total mortgage amount?
2. Is it a certified check?

#2 (or even a gift card to home depot) would work fine, but $5,000 off of the mortgage means.. What, saving a few pennies a month, while we'd have to spend or get financing for new appliances, paying whatever applicable interest off of that?

My point is, $5,000 "less" based on 5% interest is going to cost us more out of pocket than financing on appliances..

Does anyone know the norm in these situations?

A credit is usually credited against the $ you bring at closing. That is, you'll take it with you as cash now, not off the top of the mortgage. That's what makes it different than simply negotiating a lower price. Just make sure it's a credit at closing and not a price reduction. Your agent should assist with this.

Ours was a credit at closing, based on the inspection condition of the stove, fridge (ice maker was rusted out internally), and furnace.

 

[sao123]

Originally posted by: swbsam

Originally posted by: sjwaste
Take the credit and buy your own.

Otherwise, you're trading what might be a decent, but wrong finish, appliance for what will definitely be the lowest cost stainless appliance they can find. Even if you don't care, a potential buyer of your home will, and you will eventually sell it. Trust me, the people that sold me my home were not pleased when I asked for credits for all of the 20+ year old, barely functioning appliances, because I happen to like to cook.

Just because it's stainless and burns gas, doesn't mean it isn't a piece of shit that someone else will spot. It will either cost you now or later, and at least if you eat the cost now, you'll be able to enjoy it yourself for a while.

How do credits like this usually work?
1. Is it a reduction of the total mortgage amount?
2. Is it a certified check?

#2 (or even a gift card to home depot) would work fine, but $5,000 off of the mortgage means.. What, saving a few pennies a month, while we'd have to spend or get financing for new appliances, paying whatever applicable interest off of that?

My point is, $5,000 "less" based on 5% interest is going to cost us more out of pocket than financing on appliances..

Does anyone know the norm in these situations?

if you have already agreed to the price and contents of the house (IE already signed a builders contract/price contract), which im assuming you have bc they wont build anything until you do... then you will get a check from them for the cost of the appliances they were supposed to be installing. These are at volume contracters prices, and will not come close to what you would pay for one at Lowes. Also, you will receive nothing for installation / deinstallation - as you paid nothing for , maybe about half. you were paying for the house in "walk in" condition.

 

[Mill]

You need to find out what they installed and what is the price of what *you* want. Aesthetic arguments aside, if you can save money by getting a credit and buying your own (which is very very likely), then that is what I would do. A few hundred bucks and higher quality appliances is much better than having the builder install them. The builder will choose very cheap and bottom-of-the-line appliances. You can, instead, do research and pick appliances that are perfect for you and likely cheaper as they builder will charge a premium.

 

[MagnusTheBrewer]

When I was a kid, I lived next door to a young couple who NEVER cooked at home. However, the wife liked to sew. So, they literally built a wood cabinet around the stove and made it a work surface. The point is, if all you really need is a microwave, perhaps you could use the room for something else. The wiring and plumbing is already there so, if and when you decide to sell the house, you can put whatever appliances are fashionable at that time in.

 

[swbsam]

Update

I called my agent and offered the seller two options - install the stainless steel appliances or credit me $5,000. I'm guessing they'll just return to the original offer, installing crappy stainless steel appliances. And I'd honestly be ok with that, since it's just one less headache to deal with. I'll upgrade in a few years, if we ever learn how to cook

Thanks for the opinions and advice guys, I'll let you know what they say.