Will Upgrading Your HVAC Increase Home Value?

Factors to Consider

Though it may not be the first feature you think about when preparing your home for sale, your HVAC system is an intrinsic component of your home. Whether it’s keeping you cool during the summer, warming your family throughout the winter, or providing crucial ventilation, HVAC equipment impacts not only the comfort levels within a property, but also the value of the residence. Many experts agree that upgrading your HVAC system could be enough to increase the chances of selling your home faster — particularly in certain geographical locations.

Although estimating the value of a home requires a great deal of investigation into various factors, including the size of the home, and the various amenities that make a property attractive — the quality of your central air system could be pivotal in giving your real estate a better shot in the market. Research suggests that homes with high-efficiency HVAC systems and dual-pane windows generate a 5.8% higher selling price compared to similar properties that lack those features. In other words, it’s a factor you can’t afford to ignore.

These days, when a potential buyer views your property, they expect that certain systems will be well-maintained and in good condition. If you don’t have a reliable HVAC system installed, that aspect alone could be enough to send interested viewers running. After all, if you consider the stress involved in moving to a new home, then add on the cost and trouble of installing a new HVAC system, you can see the deterrent that you’re placing on your home sale.

Usually, it’s a good idea to consider replacing your HVAC system if it is more than ten years old — but try to avoid simply swapping the unit for another standard model. Opting for a higher-quality, energy efficient model will assist with lowering energy costs, and give you an extra selling point when it comes to increasing your property value. Keep in mind that there are also numerous components that you can add to a HVAC system in order to improve efficiency and performance. A professional HVAC technician can install for instance, improved compressors, a variable-speed blower, and other aspects, so that you have more to brag about when potential buyers come looking.

Upgrading Your HVAC Delivers Savings

Most real-estate professionals advise that failing to replace an out-of-date HVAC system isn’t something you can simply get away with. When it comes to having your property inspected for sale, an old HVAC system will undoubtedly raise flags, and failing to upgrade could prevent buyers from making an offer on your property. In other words, upgrading your HVAC system isn’t just about improving the value of your home, it’s essential to making sure you can find interested buyers in the first place. Without a reliable HVAC, buyers are more likely to ask you to lower your price, or search elsewhere for a different property.

When upgrading your HVAC system, it’s worth looking into newer, more energy efficient models wherever possible. Being able to offer residents a lower energy bill can be a huge factor in persuading them to buy your property, as many residents are beginning to consider the long-term costs of powering their home. After all, heating bills make up about one-third of our annual utility costs, and swapping to an energy-efficient furnace can cut down those bills by up to 20%.

At the same time, it is possible to experience tax breaks if you decide to invest in a new, more energy-efficient unit. Certain states provide tax benefits to people who choose to purchase energy-saving appliances and home improvements, meaning that you’ll have more money to invest in your future.

Enhancing Your Home’s Value

Just as with any addition to a home, It’s important to remember that certain HVAC upgrades and improvements are likely to sell more successfully in particularly geographical areas. For instance, a heat pump may be appealing in the desert, whereas solar heat is more likely to pay for itself in San Diego, where the sun appears to be constantly shining.

In spite of this, the evidence suggests that no matter where you live, having a fully-functional and dependable HVAC system installed is an essential part of cementing your home’s value. Though an upgrade may seem like a significant investment, it could be everything you need to get that all-important sale.