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...
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?
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.