Those who are thinking about selling their home are often concerned about how long it will take. They also want to ensure they’re receiving the best price. Real estate agents recommend preparing your home before placing it on the market. You will need to fix problems and make repairs. It is also important to make improvements that appeal to home buyers.
If you’re planning on selling your home within the next 5 years, you want to be mindful about the type of remodeling projects you decide to take on. You want to increase the value of your home. You also want to insure you’re investing wisely. That way you’ll get back what you spend during the sale of your house.
Is a new HVAC system worth the cost of investment?
Real estate experts say that an HVAC upgrade or replacement ranked in the top 10 for both appeal to home buyers and adding value at resale. They estimated the average cost of a HVAC replacement at $7,000 and it added $5,000 of value to the home. Many home improvements add little to no value, but a HVAC replacement has an impressive 71 percent cost-to-value ratio. Investing in a new HVAC system will help sell your home by improving buyer interest.
How much value is added depends on the individual home and current market. Nonetheless, the Remodeling Impact Report reveals home buyers are looking for more than simple cosmetic improvements. They seek remodels that add function and livability, and that will increase their enjoyment while at home.
Here are a few things to consider:
Does the area where your home is located require air conditioning? If not, there’s not much value in investing in a quality A/C unit.
Does the ductwork in your home need to replaced or repaired? Ductwork should be inspected annually for cleaning and repairs. Not all homeowners are diligent in getting this task done. If you haven’t had an HVAC technician out to your home recently and your HVAC system is more than 15 years old, you’ll probably need to replace your ductwork. The ductwork itself isn’t an expense you’ll really be able to get back. The HVAC system you choose to install in addition to the new ductwork will be.
Is your current HVAC less than 5 years old and in good condition? You’ll likely not need a new one if you plan to make a sale. As you get closer to the 10-15 year mark of the life of your HVAC system, the more you’ll want to consider replacing it.
So you’ve determined that a new HVAC System will help sell your home… Now what?
Tips for picking a new HVAC system that will increase your home value
After reviewing all of your options, you’ve come to the detemination that you need a new HVAC system to sell your house. Now the next step is figuring out what system offers the most value. Here’s a few things to consider when shopping for a new HVAC system so you get the most bang for your buck:
Energy Efficiency: Most people looking to purchase a home are trying to save money. That includes the money they spend on heating and cooling costs. If they know a new HVAC system is energy efficient and can save them money in the long-run, the more value you can instill in your home.
Go green – Going off of energy efficiency, market the low-environmental impact that your new HVAC system has. Younger house hunters are especially drawn to this appeal.
Opt for small rather than an eyesore – Many new HVAC systems are smaller and more efficient that older models. By opting for a smaller replacement, you’re freeing up space in the basement. This can be an attractive thing for potential buyers.
Add a heat pump – This additional system can make your new HVAC system more efficient, increasing it’s overall value
Choose the right size – Make sure to choose the correct size when investing in a new HVAC system. You want to calculate your home’s square footage to do this. Too small of a unit and you’ll have problems maintaining the right temperature throughout the house. Too large and you’ll be wasting your money on equipment and energy.
Should the whole HVAC system be replaced or just certain parts and pieces?
As you get closer to selling your home, you’re probably wanting to budget and spend less and not more. If you’re wondering whether you need a new HVAC System to help sell your home, the answer depends on a couple of variables:
Age of the old HVAC system – if you’re old system is more than 20 years old, you’ll want to replace it for a new one. Buyer’s are going to turn away or try to negotiate to get the price of your house lowered if they see that the HVAC system is too old. While a replacement system is more expensive, it’ll make selling your home a lot easier.
Location – How often have you used your HVAC system over the years? If you live in a relatively mild climate, like Ohio, and don’t require use of the home’s HVAC system throughout the entire year, you can definitely get away with replacing parts.
$5,000 Rule – When it comes to whether something needs to be fixed or replaced, as a homeowner, you should always take into account the $5,000 rule. A good rule of thumb to follow is if the total cost of repairs/parts exceeds $5,000, it’s better to just get a new one.
When you’re going to invest in a new HVAC system you want to make sure it’s properly installed. If you would like to talk more about how a HVAC upgrade can help sell your home, or need more information, please contact us.