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EDIT: "appliance allowance" is the more commonly used term it looks like, it's given at closing and looks like it comes out of the escrow account. Go ahead and skip to the "more detailed" section...

Short version:
So we looked at this house and it comes with a $1500 appliance credit since it has a washer, dryer, microwave, just no stove or fridge. How does that work? I already looked elsewhere, but I just can't find anything about how this works. Is it a check, a wad of cash, an agreement they'll cover up to $1500 of the appliances after you bring in an invoice or something, or they just knock off $1500 from the final selling price or something?

More details:
Friday we went out with the agent to look at houses. She's pretty new, and we think we're probably one of, if not her very first clients. She's sent us all kinds of listings and shown us a number of houses and some were close, but some were just a question of why we were even looking at them, they were so far off from what we were after. Well, we looked at this 1500 square foot stone house built in 1915 in a fairly decent area of the next city over that has lower taxes. It has beautiful woodwork, leaded glass windows, a big porch, 3 bedrooms, a decent kitchen, cinder block foundation, updated electrical that's to code...all Romex and a GE breaker box as well as GFCI outlets by sinks, copper piping, pretty new furnace and water heater, central air, a decent roof, newer windows on the second floor. And, fairly new washer, dryer, microwave, but no stove or fridge...however the seller is offering a $1500 appliance credit. Unfortunately no garage, but there's room and it's priced low enough it's worth spending the money to build one. The only other downside is my fiancee doesn't like the kitchen floor, however it somehow matches the navy blue carpet. Admittedly, the house is a little...odd, however very nice and obvious that someone who originally owned it had money.

The great thing, the house was listed for $79,900 (most around that price are tiny and/or in a crappy area) with the $1500 credit, and a one year home warranty, then the price dropped to $74,900. We offered $72,100, asked for the seller to pay closing costs ($2100), and asked for the leather couches in the living room (just because they look nice and it would be something to give up in bargaining). They accepted without even counter offering. We're getting this house. And I honestly don't like leather at all...

The allowance apparently just reduces the amount you have to pay at closing. I guess they at least sometimes just give you cash (or check, or credit it towards down payment or something like that. We should be able to put 20% down (even though we only have to put 5% with the conventional loan, it would be kind of nice to have that money for down payment but we agreed that of everything in a house, the fridge and stove are the only things we really want to start out with being new, so we want to use the credit/allowance to get a new stove and fridge...or at least pay for what it covers of them.

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Congrats!

Aside from the appliance thing, before winter hits, it might be worthwhile to take the trim off from around the windows and fill any gaps with expandable foam caulking & help save your heating bill as will doing the same under any trim that has gaps under it. Doing the plastic and/or thermal curtains can help a lot.

If all the wiring is up to date, you can blow in new insulation into the walls when you have time and money.

<---used to live in a Victorian house where the leaded glass windows were 7' and the insulation had settled into the bottom 2' of the walls

It's really just a discount on the selling price. I got a $4500 "carpet allowance" when I purchased casa De Mad because it was carpeted in the finest of 1970's brown shag. I also got them to throw in a credit for a home warranty, and then pocketed it... and then my AC exploded. It's really more a psychological/marketing thing than anything else - figure out what the most glaring defect in the house is, and then offer a credit for it so buyers are willing to overlook it - as well as a way for buyers to have a higher purchase price so they can finance more of it.

Ill definitely be going through and caulking, sealing, probably painting in different rooms. If its just a discount off what I have to pay at closing, that's perfect, we can go to Lowes and get Cash Back on the appliances. I think its a good solution, we get to pick out whatever appliances we want this way.

Congrats on the house. Get your inspections done and make sure what they are saying is true and enjoy!

thumpergeek said:   Ill definitely be going through and caulking

You should do it in every room. Front and back. It's traditional for a new house.

scrouds said:   Congrats on the house. Get your inspections done and make sure what they are saying is true and enjoy!
Strong, STRONG suggestion...Both of you should accompany the inspector when he's there.

WashingtonState said:   scrouds said:   Congrats on the house. Get your inspections done and make sure what they are saying is true and enjoy!
Strong, STRONG suggestion...Both of you should accompany the inspector when he's there.

Whole house inspection is Wednesday, getting everything including a termite inspection done, minus radon and lead paint. There's free/cheap tests for both, and it's easy to ventilate the basement out, and it's old enough it WILL have lead paint, but the windows aren't painted, so...a coat of paint on walls and it's all good. We'll be there...even though we will be tired.

ganda said:   thumpergeek said:   Ill definitely be going through and caulking

You should do it in every room. Front and back. It's traditional for a new house.

...I think we already had plans kinda along that line...

Ours is $10000 allowance. We can use it to upgrade hardwood, nicer kitchen etc, better granite etc
To answer your question, it's not a check they give you. If you buy from them then that gets deducted
If Allowance is not used , then it gets deducted from the final mortgage price is what I'm told

scrouds said:   Congrats on the house. Get your inspections done and make sure what they are saying is true and enjoy!and remember, you are paying them to find things wrong and not up to code. It's incredible some of the crap they put on those reports! If there isn't really anything legitimate for them to put on the report, some make up stuff.

One house we were selling, the inspector said that the fireplace mantle was a fire hazard. WTF? The home was well over 50 years old and the fireplace was it's heating system. It was nothing different than any other fireplace mantle, it was very nice looking, but not a hazard!. What a shame, it was a single woman who bought the house and had it taken down! It was what made that house! idiots!

Corganiacs said:   Ours is $10000 allowance. We can use it to upgrade hardwood, nicer kitchen etc, better granite etc
To answer your question, it's not a check they give you. If you buy from them then that gets deducted
If Allowance is not used , then it gets deducted from the final mortgage price is what I'm told


I'm just looking to find out how it works. We need a fridge and stove, so it's a matter of how the allowance works as to how we will buy the appliances. We wanted a new fridge and stove regardless of if whatever house we bought even came with one. Fridges don't hold up the best in moving, and stoves...we just want a nice clean new one with the smooth top that easy to clean.

AbbyN said:   scrouds said:   Congrats on the house. Get your inspections done and make sure what they are saying is true and enjoy!and remember, you are paying them to find things wrong and not up to code. It's incredible some of the crap they put on those reports! If there isn't really anything legitimate for them to put on the report, some make up stuff.

One house we were selling, the inspector said that the fireplace mantle was a fire hazard. WTF? The home was well over 50 years old and the fireplace was it's heating system. It was nothing different than any other fireplace mantle, it was very nice looking, but not a hazard!. What a shame, it was a single woman who bought the house and had it taken down! It was what made that house! idiots!


I've seen that and heard where the inspectors will seriously make up nonsense to screw the seller over. The inspector should be working for the buyer, but still be an impartial party just reporting things exactly how they are, but kept in perspective. We were going to buy this other house, but long story short, didn't happen. Anyway, we got the inspection and there was a circuit breaker that was double tapped, which isn't good. However, the second thing on the breaker was the door bell and could just be removed all together right then and there...

thumpergeek said:   Corganiacs said:   Ours is $10000 allowance. We can use it to upgrade hardwood, nicer kitchen etc, better granite etc
To answer your question, it's not a check they give you. If you buy from them then that gets deducted
If Allowance is not used , then it gets deducted from the final mortgage price is what I'm told


I'm just looking to find out how it works. We need a fridge and stove, so it's a matter of how the allowance works as to how we will buy the appliances. We wanted a new fridge and stove regardless of if whatever house we bought even came with one. Fridges don't hold up the best in moving, and stoves...we just want a nice clean new one with the smooth top that easy to clean.


I have had ceramic topped stoves and hate them. They were nice until they had a few sticky spillovers on them. Once honey gets burned on, it's impossible to remove without damaging the top.

Just MY experience. Other people love them.

In my experience, the people who like ceramic topped stoves don't like to cook, they just like a nice, shiny showcase kitchen for the neighbors to oooh over. How many restaurant kitchen have ceramic cooktops? None. You want gas.

Corganiacs said:   Ours is $10000 allowance. We can use it to upgrade hardwood, nicer kitchen etc, better granite etc
To answer your question, it's not a check they give you. If you buy from them then that gets deducted
If Allowance is not used , then it gets deducted from the final mortgage price is what I'm told


New construction?

The op is buying used.

webferret said:   thumpergeek said:   Corganiacs said:   Ours is $10000 allowance. We can use it to upgrade hardwood, nicer kitchen etc, better granite etc
To answer your question, it's not a check they give you. If you buy from them then that gets deducted
If Allowance is not used , then it gets deducted from the final mortgage price is what I'm told


I'm just looking to find out how it works. We need a fridge and stove, so it's a matter of how the allowance works as to how we will buy the appliances. We wanted a new fridge and stove regardless of if whatever house we bought even came with one. Fridges don't hold up the best in moving, and stoves...we just want a nice clean new one with the smooth top that easy to clean.


I have had ceramic topped stoves and hate them. They were nice until they had a few sticky spillovers on them. Once honey gets burned on, it's impossible to remove without damaging the top.

Just MY experience. Other people love them.

not sure when honey would get burnt onto the stove, but sounds like gas is indeed what we are looking for. Induction could be nice, but not for 5k or whatever... so, gas with ceramic coated or stainless grates shouldn't be bad.

thumpergeek said:   webferret said:   thumpergeek said:   Corganiacs said:   Ours is $10000 allowance. We can use it to upgrade hardwood, nicer kitchen etc, better granite etc
To answer your question, it's not a check they give you. If you buy from them then that gets deducted
If Allowance is not used , then it gets deducted from the final mortgage price is what I'm told


I'm just looking to find out how it works. We need a fridge and stove, so it's a matter of how the allowance works as to how we will buy the appliances. We wanted a new fridge and stove regardless of if whatever house we bought even came with one. Fridges don't hold up the best in moving, and stoves...we just want a nice clean new one with the smooth top that easy to clean.


I have had ceramic topped stoves and hate them. They were nice until they had a few sticky spillovers on them. Once honey gets burned on, it's impossible to remove without damaging the top.

Just MY experience. Other people love them.

not sure when honey would get burnt onto the stove, but sounds like gas is indeed what we are looking for. Induction could be nice, but not for 5k or whatever... so, gas with ceramic coated or stainless grates shouldn't be bad.


Gas is what I have now. Regular cast iron grates. SS underneath the grates. I love it.

My MIL was making baklava. She let the honey based syrup boil over. It can happen if you make your own BBQ sauce, too (any sort of sugary substance like that...)

ganda said:   In my experience, the people who like ceramic topped stoves don't like to cook, they just like a nice, shiny showcase kitchen for the neighbors to oooh over. How many restaurant kitchen have ceramic cooktops? None. You want gas.

I love to cook and use my stove top daily. I have a ceramic top because I tend to make messes and boil over (a little A.D.D... and am easily distracted).... and it sucks having to clean up underneath the burners every time I do that.

So... ceramic for me was a cleanliness decision... not an "ooh/ahh" decision.

I have never used gas... but have always heard that's the best way to control heat and makes for more even cooking.

thumpergeek said:   webferret said:   thumpergeek said:   Corganiacs said:   Ours is $10000 allowance. We can use it to upgrade hardwood, nicer kitchen etc, better granite etc
To answer your question, it's not a check they give you. If you buy from them then that gets deducted
If Allowance is not used , then it gets deducted from the final mortgage price is what I'm told


I'm just looking to find out how it works. We need a fridge and stove, so it's a matter of how the allowance works as to how we will buy the appliances. We wanted a new fridge and stove regardless of if whatever house we bought even came with one. Fridges don't hold up the best in moving, and stoves...we just want a nice clean new one with the smooth top that easy to clean.


I have had ceramic topped stoves and hate them. They were nice until they had a few sticky spillovers on them. Once honey gets burned on, it's impossible to remove without damaging the top.

Just MY experience. Other people love them.

not sure when honey would get burnt onto the stove, but sounds like gas is indeed what we are looking for. Induction could be nice, but not for 5k or whatever... so, gas with ceramic coated or stainless grates shouldn't be bad.


I have a recipe that calls for boiling honey before adding the goodies into the pot and tossing. I should wear protective gear but I live life on the edge.

sealed or open burners?

joyrae said:   ganda said:   In my experience, the people who like ceramic topped stoves don't like to cook, they just like a nice, shiny showcase kitchen for the neighbors to oooh over. How many restaurant kitchen have ceramic cooktops? None. You want gas.

I love to cook and use my stove top daily. I have a ceramic top because I tend to make messes and boil over (a little A.D.D... and am easily distracted).... and it sucks having to clean up underneath the burners every time I do that.


"I love to cook with wine. Sometimes I even put it in the food." - Julia Child

Stand in front of the cooktop, wooden spoon in one hand, glass of wine in the other - no ADD problems

joyrae said:   ganda said:   In my experience, the people who like ceramic topped stoves don't like to cook, they just like a nice, shiny showcase kitchen for the neighbors to oooh over. How many restaurant kitchen have ceramic cooktops? None. You want gas.

I love to cook and use my stove top daily. I have a ceramic top because I tend to make messes and boil over (a little A.D.D... and am easily distracted).... and it sucks having to clean up underneath the burners every time I do that.


I've got a ceramic top - came with the house. I have a tiny galley-type kitchen (the real estate listing euphemistically called it a 3-step kitchen) so I have very little counter space. I like it because it gives me some extra work surface/counter space when I'm not cooking. It does have a fair collection of baked on crud, although the top is a flecked grey so it blends in pretty well. Granted, my stove use is pretty much limited to boiling water and sautéing vegetables.

oic. i didnt know you could get upgrades for used realty
yes new construction. sorry if this did not apply to you, thumper

woowoo2 said:   Corganiacs said:   Ours is $10000 allowance. We can use it to upgrade hardwood, nicer kitchen etc, better granite etc
To answer your question, it's not a check they give you. If you buy from them then that gets deducted
If Allowance is not used , then it gets deducted from the final mortgage price is what I'm told


New construction?

The op is buying used.

i dont know any better; but i liked that ceramic topped stoves at one point. i do spill and never clean up though. We went with gas, but only cause someone told us to. Probably our realtor.

webferret said:   thumpergeek said:   Corganiacs said:   Ours is $10000 allowance. We can use it to upgrade hardwood, nicer kitchen etc, better granite etc
To answer your question, it's not a check they give you. If you buy from them then that gets deducted
If Allowance is not used , then it gets deducted from the final mortgage price is what I'm told


I'm just looking to find out how it works. We need a fridge and stove, so it's a matter of how the allowance works as to how we will buy the appliances. We wanted a new fridge and stove regardless of if whatever house we bought even came with one. Fridges don't hold up the best in moving, and stoves...we just want a nice clean new one with the smooth top that easy to clean.


I have had ceramic topped stoves and hate them. They were nice until they had a few sticky spillovers on them. Once honey gets burned on, it's impossible to remove without damaging the top.

Just MY experience. Other people love them.



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