How To Sell A Home With Broken Appliances

Selling a house with broken appliances is kind of like going to a baseball game without any teams playing.  Appliances are a critical part of every home and an absolute requirement to make it a “home”.

So how can you even think about selling a house with appliances that are damaged, broken or just on their last legs?

In this article, we will cover the different ways you can approach this situation.  There are pros and cons to each and costs associated with keeping or replacing your broken appliances.

From this article, you will learn:

• Whether or not it’s possible to sell a house with broken appliances
• What matters more than the broken appliances themselves
• How you can easily decide if you should replace, fix or leave the broken appliances
• What to do if the appliances are broken but you need to sell quickly

Let’s get started!

KEY TAKEAWAYS:

• Appliances break.  It’s very common.  New, old, expensive, cheap – it does not matter.  They break all the time whether your house is for sale or not.
• Buyers often expect the appliances in a home they purchase to be in working order.  This makes selling a house with broken appliances difficult for many.
• If you’re selling your house and the appliances have gone bad, there are different options you can consider to move the process along.

Can You Sell A House With Broken Appliances?

Yes.  You can easily sell a house with broken appliances.

The better question is:

Is that something you really want to do?

As the old saying goes: “If the price is right…anything is up for sale.”

And much like anything else in life, if you are willing to sell your house for cash and be done with it, then broken appliances should not be your main concern.

However, if you have substantial equity in your house and everything else in the home is new or updated, then the broken appliances will stick out like a sore thumb!

In that case, selling your house with broken appliances might not be the right move.

Are You Living In The House While Selling It?

One important factor to consider is whether or not you are living in this property while you are selling it.

Obvious to say this, but if you are, then wouldn’t you want the appliances fixed so that you can use of them yourself while you wait for an offer from a buyer?

Surprisingly, many homeowners live in homes with broken appliances.

Here’s why:

The appliance breaks. 

It’s not like you have an alternative as a homeowner. 

You continue to work around and live around the fact the it is broken.

In fact, some homeowners get so good at living without certain working appliances that they almost forget to replace or fix them altogether!

Let’s use an example:

I recently had a home I was living in and the oven broke.  It wouldn’t heat up enough to cook anything!

Leaving the oven broken was never really an option that crossed my mind.  I like to cook and having a working oven is important to me.

Instead, while I attempted to fix the oven I used the grill, microwave and toaster oven for cooking and reheating meals.

I adapted.  I had to.

Now, using this same example, add in the scenario where I’m also trying to sell my house at the same time.

Despite showings and negotiations, I still need to cook, eat and heat up food. 

However, there is just one more additional thing I would do in this situation before I go and purchase a new stove.

And that is seeing what my return would be if I was to:

1. Leave the stove broken and sell it “as is”
2. Fix the broken stove
3. Replace the broken stove with a brand new one

The easiest way for me to do the math on each of those three options, is to look at what other similar properties are selling for nearby. And more importantly, if they are selling “as is”.

After all, I can’t be the only one with a broken appliance.

Other Comparable Home Sales

Depending on where your house is located and the desirability of that area, you may not have a problem selling your house “as is” with an agent.  If the demand is very strong, you can expect buyers to look past broken appliances…and many other things too.

Even in strong markets, you’ll want to be careful with accepting financed offers.  Lenders require certain appliances to be working to fund a mortgage. 

The key takeaway here is to always keep an eye on your local market.  If buyers are clamoring for a house like yours, then maybe replacing or repairing the appliances is not required.  Or, as we pointed out above, maybe the return on investment is not really there.

However, in many markets, strong or weak, there is an expectation that homes will be sold with working appliances.

And the reason for that is because buyers want to be able to move in and occupy the property after closing.  With broken appliances, this makes it challenging to do.

Broken Appliances Are Most Important For Owner Occupants

Selling a house with broken appliances is a deal breaker for owner occupants.

Here’s why:

1. Owner occupants tend to finance the purchase of their home.
2. Lenders requires certain appliances to be working to fund the mortgage.

In fact, according to Statista, over 80% of homes are sold to buyers with financing. 

This means that over 80% are going to have to pass an appraisal that would require certain appliances to be in working order (at a minimum).

For you, the seller, this means that selling a house with broken appliances to owner occupants is problematic.  You can say goodbye to 80% of your buyer pool if you don’t plan on replacing or fixing them.

But that’s not the only way for sellers to proceed.

Selling Your House With Broken Appliances To An Investor

If there was ever an easier way out, then this would be it.

You can sell your house, broken appliances and all, to an investor. 

The beauty of this option is that you don’t need to worry about fixing, cleaning or replacing your bad appliances. 

Cash home buyers don’t require financing and they don’t mind replacing broken appliances after they close on the house.  In reality, they are planning to renovate your home anyways so broken appliances are the least of their worries.

So then, the choice is up to you.

You can either:

1. Fix, replace or credit the buyer for new appliances at closing.
2. Sell your house at a discount to a cash buyer who will take care of it.

It’s a personal choice.  And one that strongly depends on:

• the condition of your home
• how quickly you need to sell
• whether or not the appliances can be fixed
• if there are other substantial renovations needed

If you own a property with broken appliances and need to sell it, then my team and I can give you a cash offer.  You won’t be required to fix, replace or credit us for the broken appliances.

You also won’t be obligated to take our offer.  It’s free!

Selling Your House With Broken Appliances “As Is”

Let’s talk a little bit about how you can move forward with selling your house full of broken appliances.

We will break this down into three main topics.

1. Appliances That Are Typically Included In A Sale

When you go to list your property with an agent, here’s what you can expect.

First, you will complete a purchase and sale agreement with any prospective buyers.  In this contract, it should outline what appliances will be included in the sale.

Second, you must fill out a property disclosure form.  This form highlights your understanding of the condition of the property overall, including the appliances.

These are two opportunities for you to communicate to your agent and buyers the status of your appliances that will be included in the sale.

Based on my team’s years of experience in buying homes, these are the most common appliances that are included with the sale of the home:

1. Oven
2. Microwave
3. Dishwasher
4. Refrigerator & Freezer
5. Water Heater
6. Washer & Dryer
7. Furnace & AC

It is possible that there are other ones we did not list, but in general these are the main appliances that buyers expect to come with the sale of your property.

2. Appliances That Are Most Important

Out of that list of seven, I have boiled it down to the top 3 that are most important.

The Furnace & AC are going to make the top of that list.  For one, they are likely the most expensive units to replace.  And secondly, they provide heat which is a bare minimum requirement for a living space.

After the furnace, the water heater is next.  Having access to hot water is standard.  It’s important for other appliances to function correctly but it is also a health and safety requirement.

The last critical appliance that I consider important is the oven.  In an emergency, ovens are a source of heat.

Outside of these top three appliances, everything is fairly negotiable and easy to repair/replace.

3. Appliances That Are Negotiable

A good way to think about what appliances might be negotiable is to ask yourself:

Is it something I can replace myself from Home Depot or Lowes?

If the answer is yes, then maybe you can negotiate around it.

If you need someone specialized like a plumber or HVAC technician, then be mindful of the labor costs and complexity of replacing those appliances.

In real estate, everything is negotiable.  If you’re selling a house with broken appliances, then be prepared to receive offers that reflect that and open up the deal for further negotiations.

Negotiating Broken Appliances With Buyers & Sellers

Now that you know what appliances can and should be negotiated in a real estate transaction, how do you actually go about doing that?

What you’ll find is that there are really two different ways to go about this.

You can either offer to replace or repair the broken appliances for the buyer before closing.

Or, you can offer them a credit or price reduction. 

What To Budget For All New Appliances

After some careful thought and consideration around your broken appliances, you’re now probably ready to either replace them or offer a credit.

But before you can entertain either of those, you need to know what new appliances will cost.

On average, new kitchen appliance bundles will run you about $10,000 – $15,000 for standard grade units.  And if you’re replacing or offering a credit, you’ll want to base it off of standard grade.  There’s no reason, in this situation, to assume that premium appliances are required.

For other household appliances, the costs may vary:

Can You Afford To Replace The Appliances?

Based on the average pricing above, you should be able to evaluate whether or not you can afford replacing them before selling your house. 

If all of your appliances are broken and it feels like a stretch to replace them, then sell your house “as is” to a cash buyer and offer a discounted price.  Sometimes, if you don’t have the funds available, this may be your only option.

If just some of your appliances are broken, it would be wise to replace them selectively so that you can list your house, with fully working appliances, on the market.  This will bring you a solid offer.

Determining whether or not you can afford to replace the appliances is a personal decision that involves your own deliberation.

Here are some of the things I would be asking myself:

1. How quickly do you want to sell your house?
2. How much extra money you have to replace appliances?
3. What appliances need replacing?
4. Do they need replacing or just a repair?
5. What return you might expect from replacing broken appliances?
6. Who you can find to install the new appliances?

There’s no right answer here, but the information provided should give you a good framework to arrive at a decision.

Alternative Options To Replacing Appliances In Your Home

If the answer is:

“No, I will not replace my broken appliance before selling my house.”

Then great…you have a plan. Having a decision is half the battle.

Now, you just need to execute.

As I alluded to earlier in this article, you can sell your house with bad appliances as long as you focus on finding the right buyer and at the right price.

Broken appliances are going to cost you something.  Either in the form of replacing them or accepting a lower offer on your house so that the buyer can replace them.

The best alternative to going out, shopping for appliances, finding an installer and managing that whole process is to just sell your house “as is”.

We buy houses with broken appliances from sellers because it’s an easier and quicker option than replacing them.

If you’re selling your house with old, broken or wasted appliances then please let us know and we can help you get a great outcome.

Common Questions: Selling A House With Broken Appliances

Q: Can I sell my house with broken appliances?

A:  Yes.  Everyday, homes are sold with broken appliances.  If you’re thinking about listing your property for sale and the appliances are broken, it’s always best to list it “as is” or offer repair credits to the buyer.  You are legally required to disclose what you know – including broken appliances.  Furthermore, any buyer’s home inspection would surely uncover a broken appliance which further reinforces the idea of being proactive and forthcoming about the situation with your house.

Q: Should I repair broken appliances before selling my house?

A: As we discussed above, this decision is based on your budget to replace the appliances as well as the local market for properties like yours.  In a seller’s market, you might be able to make the case for not replacing them.  However, if you decide to, you can then potentially increase the home’s value and list your house for even more.  This decision really boils down to what the return on your investment would be for replacing one or more of the broken appliances.

Q: How do broken appliances affect my home’s value?

A:  A house with broken appliances is less valuable than one without them.  Here’s why:  Many buyers expect to move right into a house after closing on it.  If the appliances are damaged or not working properly, this will reduce your homes appeal to them…thereby reducing its value.  In reality, we see homes with broken appliances listed longer on the market, selling for below asking price or even receiving credits from sellers at closing. 

Q: Can buyers negotiate on price due to broken appliances?

A: Home appliances are a key staple for any property.  If they are broken, it reduces the value of the property to prospective buyers.  Once your major kitchen appliances or HVAC units stop working, you can either consider an appliance replacement or prepare for price reductions along the way.  More often than not, homeowner choose to negotiate pricing and offer seller concessions so that the buyer can replace the appliances themselves.

Other Resources & Articles From Doug

Selling A Home In Foreclosure

Sell Your House In Probate

How To Fire Your Realtor

Author: Doug Greene

Doug brings over a decade of real estate and business experience to his content. Educating homeowners and helping sellers with their properties is his passion.

His contributions have been featured on Realtor.com, Washington Post, Apartment Therapy, HomeLight, Better Homes & Gardens and many more.