When buying a home from a builder, is it better to purchase a fridge through them? Property tax vs. sales tax, already installed vs. setting that up

Asked by sujin, Los Angeles, CA Tue Dec 17, 2013

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Raoul Loustaunau hablo Espanol’s answer
Raoul Lousta…, Agent, glendale, AZ
Thu Dec 19, 2013
Hello Sujin

both ways have their benefits and disadvantages , when i bought a new home i went with the options of the builder , because it was easy and save time . then found the items at a better price at a store its just that i hate shopping at stores . so really is what you want to take the time to do

have a great day
0 votes
Thanks! It's definitely appealing because of the convenience.
Flag Fri Dec 20, 2013
Ann Griffin, Agent, Mesa, AZ
Wed Dec 18, 2013
It also depends on what they are charging for you and what models are available. Frequently you can buy the same model for less, yourself. However, if your own installer damages the house, its on you, not on the builder.

The biggest problem with water leaks in homes right now, is refrigerator water lines, so be sure to get a professional to install it, whether or not it is the builder's contractor.

You will be paying sales tax regardless of where you buy it because a refrigerator is personal, not real property.

Best wishes,
Ann Griffin
Coldwell Banker Trails and Paths
1 vote
Sujin, I'm in a different state than you so can't answer with certainty. Check with your buyer's agent or the builder's agent.
Flag Sat Dec 21, 2013
Thanks! I saw that prices in the store for similar models were not too different from the builder's price but it's harder than I thought to find one that has the same dimensions and is counter depth. Also, one of the contractors said that anything purchased through the builder is added to the home value and is free feom sales tax... but subjected to property tax. Is that incorrect?
Flag Fri Dec 20, 2013
Jennie Miller…, Agent, Phoenix, AZ
Wed Dec 18, 2013
You might want to check the options and types of refrigerators that the builder offers since they usually have a couple of models/styles that they offer.
1 vote
Doug McVinua, Agent, Gilbert, AZ
Wed Dec 18, 2013
As stated below Builders profit margins on upgrades and accessories are high and one of the reasons they do such a good job presenting them to you. With that said for some buying form the builder is still the right decision, to wrap it into the loan, have it installed when you move in etc.

Not sure I understand your question regarding tax? Are you concerned that buying it from the builder will increase your property tax?
1 vote
Thanks! I know it's not much but I don't really want to pay property tax on it annually. But it is definitely more convenient. Will it be exempt from sales tax at least? since the builder is taking care of it. ..
Flag Fri Dec 20, 2013
Jeff Lee, Agent, Phoenix, AZ
Wed Dec 18, 2013
New home builders offer many "personal" type items and the mark-ups are substantial, probably in the neighborhood of 1/3 markup. The only reason to buy through the builder is because you a) ran out of money with down payment and closing costs or b) you just don't want the bother of shopping.
A minor thing to consider: The builder will be responsible for any damage caused by placing items you bought through them in the home.
Some items make a little more sense. For example, things like plantation shutters throughout the home can be installed by the builder. Let''s say the retail is $15,000 (or more) and you know you aren't going to own the home past 5 years or so. $15,000 is only $7-$8 per month but let's go as high as $10.00 per month. $10 x 60 months is $6,000 so you've saved over $9,000. Now when you sell the home with these pretty shutters, it will ad value.
Using the same logic on appliances may make some sense but remember appliances devalue over time (like a car) and ad no value at the sale. In fact, the appliances may be at the end of their projected life and / or obsolete models.
Buy the best lot you can get in the neighborhood even if it means downsizing the home! That will pay the best return when you sell.
1 vote
Thanks! So even the refrigerator is usually under their warranty? (I have the papers but can't read them right now)
Flag Fri Dec 20, 2013
Gordon Hagem…, Agent, Scottsdale, AZ
Wed Dec 18, 2013
It all really depends on how what the item actually costs. You can compare their price against the same unit easily online. If they are including it in your mortgage, even though a small amount, the interest on the fridge over the life of the loan. It might actually end up costing you more over the long run.
1 vote
Thanks! It's not easy to find the same dimensions as the built-in one that they have but that tax in perpetuity isn't very appealing.
Flag Fri Dec 20, 2013
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