Thinking of putting your house up for sale, either now or in the next couple of years? Then you are probably considering what upgrades or repairs are necessary to appeal to buyers. Any changes you make should either increase its value or help it sell faster. Should replacing your HVAC system be on your list?
The condition of a home’s heating and cooling system generally ranks among buyers’ top concerns. They want a home with a reliable heating and cooling system, so it makes sense for sellers to upgrade their HVAC system when preparing to put their home on the market.
There are several reasons why:
You won’t worry about problems identified by a home inspection
During a home inspection, the technician will thoroughly evaluate your HVAC system. If any problems are noted, the buyer can come back to you and ask you to either fix them or reduce the selling price. If you don’t, the buyer may walk away from the purchase.
Having a new HVAC system can be an attractive selling feature
Many buyers are looking for a home that’s move-in ready. They want a home they don’t have to make major changes or repairs to. A new or upgraded HVAC system with a warranty can provide peace of mind to buyers because it offers more confidence that they won’t encounter any major issues in the near future.
Age of the system
Is your system 16 or more years old? Has it needed frequent repairs? Are parts harder to get? Even if your HVAC company currently has your system humming, it may have little life expectancy left.
An older HVAC system will generally be noted on an inspection report as having to be replaced, according to realtor.com. This leaves buyers to worry that they’ll be left without heat in the winter or air conditioning in the summer. If the home seller doesn’t replace it, sometimes buyers won’t make an offer on the house. It can also lead buyers to ask you to lower your price, or even worse, to look elsewhere for a home that’s more updated. A new furnace or AC unit may make your home more attractive to buyers, which can lead to a quicker sale.
Homebuyers want to purchase homes with affordable utility bills, especially in climates like Connecticut that are very hot in summer and very cold in winter. In addition to making your home more attractive to buyers, a new furnace can also help lower your energy bills, which can make financial sense if you plan to stay in your home for an extended period. Heating and cooling bills make up about one-third of our annual utility costs, and upgrading to a newer energy-efficient unit can decrease those bills by up to 20%.
Replacing the HVAC system benefits sellers too
Replacing an HVAC system is not just a good way to attract buyer attention, it’s also beneficial for you, the seller in the short term. Rebates for a portion of the purchase and installation costs are often available through utilities, manufacturers, and even government agencies.
Is a New HVAC System Worth the Cost?
The key to determining whether or not a new system is worth the price is to determine if it is needed. An old outdated system may detract buyers. While they may not even notice that the system in place is new, they will definitely notice if it is worn or broken. But, replacing an older system could help grab a buyer’s interest and that could be worth the entire sale.
Tips for Choosing a New HVAC System That Increases Your Home’s Value
Once you’ve decided that a new HVAC system is necessary to sell your house, it is your job to find a system that offers the most value. Here are a few things to consider:
- Be mindful of energy efficiency ratings. The more a new homeowner could save on energy costs, the more value they will place on the system.
- Choose the right size unit to accommodate the home’s square footage. Too small and the system will struggle to maintain the right temperature. Too big and you’ll be wasting money on both equipment and energy.
- Younger generations make up a large segment of today’s active home buyers. And more than half of those surveyed want smart technology in their homes to make them feel more comfortable, safer, and more secure. See: Nest Thermostat – The most valuable smart home companion
The exact return on your investment varies based on many factors, including the real estate market, the amount you spend on a unit, and what buyers in your area expect. A real estate agent can help evaluate what your return on investment would be. And Levco’s highly trained technicians can help determine what you need to do when it comes to replacing the HVAC system in your home. Call us today!