New home Appliances - buy from builder or not ? (sales, foreclosure) - City-Data Forum

cricket_phx · 08-13-2010, 01:18 AM

We are purchasing a new house with DR horton. This is our first home.

While buying appliances (refridgerator , Microwave , Washer , Dryer) should we go with selection which builder has or we can get appliances done later ?

Looks like builder have GE products only. Not sure how are they.

Does it cost more if we purchase from builder ?

Does it cost more if we get it installed later ? Does sears / best buy come home and install those free ? How much is cost difference really ?

DR horton sales rep say they wont just install if we get our own appliances. We have to buy from them only to get it installed by them.

Any suggestions / help would be appreciated .. Thanks a lot

observer53 · 08-13-2010, 05:09 AM

Isn't the cost of at least some of the appliances included in the price of the home??? (I realize you can pay extra for "upgrades" of various included things like carpeting, not sure if they do the same for appliances.) For the ones that are included, I would take what they have. GE is fine. I've had the same GE dishwasher in my house since it was built in 1986, with a couple of minor repairs. The in-the wall microwave has been replaced once. For anything not included, (like washers and dryers, which often are not) shop around and see what the prices are. Most, if not all, stores will deliver/install for free, at least that's been my limited experience. The builder certainly gets them from the manufacturer at a good price because they buy in such volume. How much of that saving gets passed on to you, you can't find out for sure, but you can get a good idea by comparing prices.

Zippyman · 08-13-2010, 07:32 AM

The basic, included appliances are likely your best bet - upgrade costs from builders are often higher than just buying the upgraded appliance yourself.

I would check Home Depot and Lowe's for basic appliances if the builder will give you a credit - you may be able to save a few hundred that way - they buy (and sell) more appliances than any builder, and they often have great sales, free install, 0% financing for a year or two, and good selection.

If you want really high-end appliances, there are some well-regarded internet sites that will deliver and install the good stuff (Wolf, SubZero, GE "Cafe") at a huge discount compared to what you'ld pay at the likes of Best Buy/Sears. And they also sell 10 year extended warranties.

As far as quality goes, don't expect much, there are quite a few expensive lemons out there when it comes to appliances - 10 years is now an eternity for appliances like a refrigerator, dishwasher, or washing machine. Paying alot of money for premium appliances doesn't really pay back in a longer lifetime, many times the "cheap" appliances are actually the same or better than the top-shelf ones.

When remodeling my home last year, I ran across a couple of $2K+ stoves that were just out of warranty when the $700 touch-screen went out...

If you do decide to buy your own appliances, be very careful with the numbers - "upgrading" from a standard $700 double-door fridge to counter-depth can triple the price. You can buy a basic new dishwasher for $250, or spend $1500+ for a Fisher & Paykel - it's very easy to spend more on appliances than you would for a good car.

Oh, and don't EVER buy a used Sub-Zero refrigerator unless you can afford to pay someone else to move it. I found an amazing deal on one that was only a couple of years old last summer for my little brother's place.

The thing was so heavy it literally almost squashed me like a bug.

.

KatrynS · 08-13-2010, 10:02 AM

You'll have to run the numbers for your case. It depends on what you want.

If all you want is working basic appliances, the standard package provided from the builder is usually best. Appliances that are NOT included, are usually cheaper to buy elsewhere. Sears/best buy will deliver and install for less than $50.

If you want to upgrade -- maybe the builder includes black appliances for free but you have to upgrade to white or SS -- you just have to compare the upgrade package price to what what they'd cost from a store minus any credit the builder would give you (often the credit for not taking the standard appliances is not much, after all they WANT you to buy the appliances thru them and upgrade since they make a LOT of profit that way!).

Also, you should NEVER pay "list price" for an appliance, which is probably the price the buider might show to prove what a good deal they are getting you. Rule of thumb might be more like 30% off of that without trying too hard from folks like Best Buy. The internet store deals can be better and avoid sales tax and often have free shipping, but often take weeks to deliver, so factor that in.

Appliances can be a HUGE line item on a new house, so you need to spend the time to do your research. Consumer reports is a good place to look. The key thing is figuring out what matters to you and spend your money there without getting suckered into spending on a thousand features you don't give a hoot about!

I'm kinda bummed the house we bought had new dishwasher/range/micro since I had my heart set on different models (boo hoo, lol), but we spent almost $2K on DH's dream fridge and I got a good deal on a nice samsung HE washer with lots and bells and whistles for about $650. List price would have been $2500 on the fridge and about $850 on the washer, to give you an idea about how ridiculous list prices are.

Again, if you don't care, go with the builder standard. For the appliances not included, comparison shop between builder and stores. Don't be afraid about installation -- it's trivial, you don't need the builder to do it. If you just gotta have a double oven or a range with convection, do it now either thru the builder or thru a store. Or save your money and upgrade in 10 years. If you're going to be borrowing lots for the house, decide if feature X is really worth the extra debt.

AZJoeD · 08-13-2010, 04:22 PM

The questions are "Do you have the cash to buy them yourself?" or "Do you want to roll them into the price of the home?"

It will cost you more in the long run buying from the builder, but since it only ads a few thousand to the cost of the home it will not raise your payment that much. If you buy them yourself you will need a couple thousand more cash.

Zippyman · 08-13-2010, 04:31 PM

Quote:

Originally Posted by AZJoeD

The questions are "Do you have the cash to buy them yourself?" or "Do you want to roll them into the price of the home?"

It will cost you more in the long run buying from the builder, but since it only ads a few thousand to the cost of the home it will not raise your payment that much. If you buy them yourself you will need a couple thousand more cash.

Or even just a couple hundred bucks if you can borrow a pickup and spend a day hunting on Craigslist.

If you have to finance something for 30 years ( that might not even last 10 years), you really can't afford it.

Ponderosa · 08-13-2010, 04:46 PM

I'm going to go against prevailing opinion here and say get your appliances from the builder. Unless you plan to stay in the house for a long, long time it will be far cheaper. Why? Leveraging. If you buy say $5000 of upgrades your loan amount will increase by $25 per month at today's low rates. If you stay in the house the typical 5 years it will cost you about $1500 (future lower value dollars) for those $5000 of appliances. When you sell, the buyer pays the balance! If you plunk down 5K at Best Buy you will be paying $5K and you won't get much of it back on resale.

Now if you plan to stay and most people do not even if they think they will never move when they buy their house, then it may make sense to shop around for the best price and pay up front. Of course if you have to put the appliances on a charge card at 15% things change again.

But I think for most people who will be moving on in a few years, it makes sense to get as much as you can for as little out of pocket as you can get it and buying from the builder is the way to do that. If you have $5K or more to shell out on appliance upgrades, you would be better off to put the money on the loan at 4.5% or whatever ridiculously low rate there is today and put the $5K in a 521 plan for your kids education or a Roth for you.

Of course, the best advice was what someone gave you above - live with the appliances you get standard for a few years then upgrade to whatever is in vogue at that time.

KatrynS · 08-13-2010, 04:55 PM

Quote:

Originally Posted by Ponderosa

I'm going to go against prevailing opinion here and say get your appliances from the builder. Unless you plan to stay in the house for a long, long time it will be far cheaper. Why? Leveraging. If you buy say $5000 of upgrades your loan amount will increase by $25 per month at today's low rates. If you stay in the house the typical 5 years it will cost you about $1500 (future lower value dollars) for those $5000 of appliances. When you sell, the buyer pays the balance! If you plunk down 5K at Best Buy you will be paying $5K and you won't get much of it back on resale.

Now if you plan to stay and most people do not even if they think they will never move when they buy their house, then it may make sense to shop around for the best price and pay up front. Of course if you have to put the appliances on a charge card at 15% things change again.

But I think for most people who will be moving on in a few years, it makes sense to get as much as you can for as little out of pocket as you can get it and buying from the builder is the way to do that.

Actually, you still pay the balance -- unless you think the buyer will pay more ($3500 more in your example) for your house with those particular appliances, or if you plan to walk away in foreclosure. Your payment may only go up by $25/mo, but your cost basis still goes up by $5K, so when you sell you are still out the full $5K in value.

I agree with the PP -- if you cannot afford to buy the appliances cash you should probably go with the most basic ones you can get. We got a really nice 2yo smoothtop range for $100 from Craigslist for a house we were selling -- same make and model my MIL bought new 2 years earlier for $600. Right now there are plenty of folks selling the expensive upgrade appliances from their underwater homes.

Greatday · 08-14-2010, 09:12 AM

If it were me (and it has been previously), I take the credit given to me by the builder, and go purchase my own appliances. I KNOW I will have to come out of pocket though for the appliances. You must know however that the lender is GOING TO REQUIRE that basic appliances - Range and oven, Cook-top, Dishwasher, Disposal be in place and operational in order to close escrow

You will be able in most cases get a better deal doing it on your own. Shop, Shop, Shop though - and do it early in the process.

Good Luck!

Zippyman · 08-15-2010, 07:36 AM

Quote:

Originally Posted by Greatday

If it were me (and it has been previously), I take the credit given to me by the builder, and go purchase my own appliances. I KNOW I will have to come out of pocket though for the appliances. You must know however that the lender is GOING TO REQUIRE that basic appliances - Range and oven, Cook-top, Dishwasher, Disposal be in place and operational in order to close escrow

You will be able in most cases get a better deal doing it on your own. Shop, Shop, Shop though - and do it early in the process.

Good Luck!

Appliances are not a requirement for financing - FHA used to require a stove, but that requirement was removed years ago. There are still a few FHA appraisers who will put that requirement in an appraisal, but it isn't a requirement, and they really ought to know better. Any appliances that are present at the time of the appraisal need to work, but you do not need a dishwasher or a garbage disposal.

FHA requires a permanent source of heat for most (but not all) of the country, but a/c is not required anywhere in the country, even here in PHX!