High-End Appliances and Resale Value of Homes

By Stephanie Sham, DeLeon Realty Interior Designer

The resale value of a home is influenced by a number of factors, including location, square footage, and the condition of the property, just to name a few. Another important factor that can have a noticeable impact on resale value is the perceived quality of the home’s construction. Given that many of the very successful buyers in Silicon Valley did not grow up in particularly opulent surroundings, they may not be familiar with each and every facet of quality construction. Nevertheless, most of these buyers are familiar with luxury appliances. Therefore, many buyers, and even some real estate agents, look at the quality of the appliances and then assume that the entire home is built to this standard. This is particularly true with new construction.

When it comes to appliances, the extent to which the high-end brands can increase a home’s value depends on a buyer’s expectations of whether a home in a particular neighborhood and price range “should” have high-end appliances. For example, it would not be unusual for buyers in the market for luxury homes in Atherton, Menlo Park, or Los Altos Hills to expect to see high-end appliances in a home, whereas a buyer in the market for a starter home in a less upscale neighborhood may be perfectly satisfied with something mid-range. In that case, any high-end appliances would simply be a bonus, but it may go unnoticed by buyers unfamiliar with the brand.

In other words, there are times when the right appliances can make or break a deal. However, appliances can be quite expensive so the seller should make sure that they will make a difference. For example, if all the comparable homes have highend appliances and yours does not, your home may be in a disadvantageous position, and upgrading your appliances could result in a nice return on investment.

In terms of particular brands of appliances, high-end buyers may expect to see luxury brands, such as Wolf, Sub-Zero, Gaggenau, Miele, Viking, Thermador, and La Cornue. DeLeon Realty is unique in providing our seller clients with free access to an in-house design team to help make the right choices. Our listing team has intimate understanding of what buyers in different neighborhoods in Silicon Valley like and dislike, having represented hundreds of clients every year. Additionally, our marketing team will ensure that such appointments are highlighted in our marketing materials so that they are not overlooked by potential buyers.

If you are interested in upgrading your appliances but are not prepared to invest a significant amount of money to do so, a simple upgrade of the kitchen range could be a wise decision. It is one of the most-used appliances in a home and is sure to be noticed at open houses and in marketing materials. Investing in an all-in-one, pro-style range, such as a Wolf 6-burner, could be an excellent investment that is sure to make a positive impact. Buyers know quality when they see it. When they see it in your kitchen, psychologically, they may extrapolate that standard to the rest of your home, even if the home may not be thoroughly updated.

Another way to update your appliances without overspending is to install a suite of them from the same brand, usually consisting of the refrigerator, range, vent hood, and dishwasher. This is typically seen as a plus in the eyes of buyers, as your home will appear to have been thoughtfully planned, cohesive, and complete.

Deciding whether to upgrade your appliances before listing your home is a delicate balancing act. We help our sellers with the various factors that can influence resale value. To do this, we put ourselves into the shoes of a prospective buyer and imagine what they may be looking for in a home. We also work with our in-house contractor to consider other factors, such as the ease of installation.