If you’re thinking about selling your home soon, or you’re thinking far ahead to someday in the future when you may want to sell your home, you’re probably wondering whether adding an HVAC system to your property could increase its value.
The answer is yes it can increase your home’s value. However, the exact dollar or percentage value will vary depending on a number of factors. So how much does a new HVAC system add to the value of a house?
Installing a new HVAC system could increase your home’s value by as much as $2,500-$3,000 or approximately 5-10% of the total value of your home.
The typical cost of installing a new heating and cooling system is about $10,000. This means that you won’t get much of your investment back immediately, or at all unless you use it for a few years. So, if you’re about to sell, installing a new system is probably not worth the money. However, if you’ll be sticking around for a few more years, you’ll be able to enjoy the benefits (and possible cost savings) of an HVAC system in your home.
What Kind Of Return On Investment Could I Get On My HVAC Unit When I Sell My Home?
While you’re unlikely to get your full return on investment, you might get as much as 20-30% back when you sell your home. Adding a new HVAC can increase in your home’s resale value, which will raise the overall market value.
The average cost of an HVAC system is roughly $10,000 or more including installation costs. Having a new HVAC could potentially add thousands of dollars (sometimes as much as $2,500-$3,000) to the selling price of the home, giving us the 20-30% ROI figure. In addition to the increase in monetary value, HVAC systems make your home more appealing to potential buyers too which could help to sell your home faster.
Always consult with your local real estate agent for a more accurate estimate based on your house’s condition, your neighborhood and the current real estate market.
Could An HVAC System Save Me Money On Monthly Bills?
Yes, a new central air conditioning system (HVAC system) can save you money on energy bills each month. These units are designed to be so much more efficient than typical air conditioner units (window units).
That, combined with the fact that many new HVAC units are many times more energy-efficient than even HVAC units from just 5-10 years ago, means there’s a chance you could see as much a 20-40% reduction in your energy costs & utility bills each month! Depending on the square footage of your home, your current monthly electric bill, and the energy efficiency of the new system, you might even pay back your initial investment in the first 8-10 years!
If you do get a new system, schedule regular maintenance to avoid costly repairs down the road. A well-maintained HVAC system will serve you well in the long run! It’s better to spend upfront to keep your system maintained and running efficiently instead of spending more on frequent repairs.
What’s My Best Next Step?
If you’ve been contemplating getting a new HVAC system installed in your home and you’re ready to take the next step, it’s time to get in contact with a certified HVAC installation contractor. If you’re in Montgomery County, Pennsylvania or surrounding areas, contact our team here at Young’s Home Comfort! Our skilled technicians are trained, certified, and highly experienced, and we offer free quotes, professional installation, and routine maintenance.
Make sure to choose a trustworthy contractor to install your new HVAC system. If not installed properly, it could void the system’s warranty or could cause you issues sooner than necessary.
FAQs
A new HVAC system is simply new heating, ventilation, and air conditioning system. Does New HVAC Increase Home Value? We often receive the query, 'does new HVAC add value to home', and though there are a few factors to consider, the answer is that yes, generally it does. It can increase your home's value by up to 10%.
How much does a new HVAC system increase home value? ›
How much value does a new HVAC unit add to your home? A new HVAC unit typically adds about $2,500 to $3,000 to the value of your home or about 5% to 7% of your home's value. Since a new unit can cost up to or more than $10,000 to install, it's up to you to decide if the upfront cost is worth the added value.
Does HVAC affect home appraisal? ›
The Impact on Home Appraisals
If your HVAC system is outdated or in poor condition, it could result in a lower appraisal value for your home. On the other hand, a modern, well-maintained HVAC system can positively influence the appraiser's assessment and contribute to a higher home resale value.
Is getting a new HVAC system worth it? ›
Installing a new system can seem significantly costly, but it can provide some considerable savings on your monthly energy costs. When you make the decision to replace your unit, a licensed specialist can provide you with estimates based on a few different HVAC system options.
Should I replace my HVAC before selling my house? ›
If you do replace your AC before listing your home, the cost can be factored into your selling price. If you don't replace your air conditioner even though it's almost time, the value of your house could be negatively impacted, and you may end up losing out on proceeds from the sale.
What adds the most value to a home? ›
Projects That Boost Your Home's Value
- Remodel the kitchen. Updates to the kitchen pay off. ...
- Upgrade the appliances. ...
- Boost the bathrooms. ...
- Remodel the attic or basem*nt. ...
- Get decked out. ...
- Boost curb appeal. ...
- Improve energy efficiency.
In general, most HVAC systems will last 15 to 25 years, but depending on the type of system and other contributing factors, that estimate can be highly variable. Even with HVAC maintenance and regular repairs, eventually, even the best boilers, furnaces, heat pumps, and air conditioners today will run their course.
Does the age of HVAC affect appraisal? ›
Appraisers will note if the system is more than 13 years old. If the potential buyers know they have to eventually replace the unit, especially within a few years, they're likely to come back with a much lower offer. Note: It's a good idea for sellers to keep all HVAC service records.
Are HVAC systems qualified improvement property? ›
Qualified Improvement Property on HVAC qualifies when the assets are interior, but not when they are externally located. Qualified Improvement property examples for HVAC could be internal VAV boxes or ductwork. This affects HVAC bonus depreciation, internal components would qualify, but external components would not.
Do home appraisers consider upgrades? ›
Appraisers look at the general condition of the home, the home's location, the age of the house, the size, unique features and any improvements made to the home.
Most 20-year-old HVAC systems are at the end of their life span, and if they are becoming increasingly more expensive to maintain and operate, it's likely a good time to consider a replacement. We typically recommend a replacement when it's a more cost-effective decision.
What is the HVAC rule of 5000? ›
The $5,000 rule is an industry accepted rule for determining whether to repair or replace an HVAC system. Multiply the age of your equipment by its estimated repair cost. If the outcome is under $5,000, you should probably repair. If over $5,000, you should replace.
What age should you replace your HVAC? ›
* 14 to 20 years – Most experts agree this age range reflects the average lifespan of well-cared-for HVAC systems. Breakdowns at this point often indicate replacement may be the better option.
What time of year is cheapest to buy HVAC? ›
Depending on normal weather patterns, the best time to buy an air conditioner is in the Spring (March and April) and the best time to install a new furnace is in the fall (September and October).
What is the best time of year to buy a new HVAC system? ›
The business activity follows the general pattern below, depending on the actual weather. The best times to replace your HVAC system are the spring and early fall when the business is the slowest.
Are HVAC quotes negotiable? ›
Currently, in 2023, HVAC installation costs typically range from $6,423 to $11,800. But homeowners can reduce the cost of a new air conditioning unit by negotiating the contract price and terms with their contractor.
What is the average markup on HVAC? ›
In general, the best-practice markup for HVAC parts and materials is somewhere between 3X and 6X what you paid for the item.
Does a new heat pump increase home value? ›
According to a 2020 study in Nature Energy a heat pump can increase home value by $10,000 to $17,000. It varies depending on the energy efficiency and type of heat pump. Air-source ducted and ductless heat pumps most common. Solar powered and geothermal heat pumps are also available residentially.
How can buying a new HVAC save you money? ›
High-efficiency systems use less energy to produce the same amount of heat or cool air, which can result in significant savings on your energy bills. Look for systems with a high SEER (Seasonal Energy Efficiency Ratio) rating for AC units and a high AFUE (Annual Fuel Utilization Efficiency) rating for furnaces.
