How an HVAC Upgrade Impacts Your Home’s Value
If you’re looking to sell your home or believe that you’ll do so in the future, there are certain upgrades you can make that will increase your home’s value. One of these upgrades involves replacing your existing HVAC unit with a modern one. The amount that’s added to the value of your home depends on the type of system you buy and the features it comes with.
Considering When to Upgrade HVAC System
Even though an HVAC upgrade should automatically help you reduce your monthly energy bills, these upgrades aren’t right for every homeowner. If you’re looking to make improvements that will increase the value of your home, an HVAC upgrade may be worth it. Consider the cost of the new unit as well as the efficiency of your existing system. If the system that’s currently installed is inefficient, a new replacement might significantly increase the value of your home. It’s possible to cut energy bills by 10%-30% when buying a new unit.
You should also consider if your ducts need to be replaced. Ducts are passages that help distribute air throughout your home. If some of the ductwork in your home is in poor condition, it might need to be replaced before the new unit is installed. This type of replacement can add thousands of dollars to the upfront costs of buying a new HVAC system.
Think about the condition your existing HVAC unit is in. Heating and cooling systems aren’t made to last forever. Over time, more components need to be repaired and replaced, which causes you to spend more money just to keep the system in good shape. Consider replacing your HVAC unit after 10-15 years. You could also hire a professional to inspect your system and tell you if a new one is necessary.
Retrofitting or Upgrading?
If you’re looking to make improvements to your HVAC system, there are two options at your disposal, which include retrofitting your current system or buying a new one altogether. Retrofitting involves replacing certain parts in a manner that increases the unit’s efficiency and helps you save money. This solution saves you money but might not increase your home’s value.
Understanding HVAC System Costs
Upgrading your home’s HVAC system will likely increase the property value. You should, however, compare the value increase with the initial HVAC system cost. Everything from the type of system you choose to the difficulty of installing it will play a role in determining the system’s price. Low-end models tend to cost around $2,000-$5,000. However, these units may have higher and more frequent AC repair costs in the long run.
Advanced units with a high efficiency can cost around $10,000-$20,000. These units are often equipped with additional filtration and quiet components. To understand how advantageous a new unit can be, keep in mind that nearly 50% of the average energy bill for a residential home is centered around heating and cooling costs.
How Much Your Home Value Increases
To estimate how an HVAC upgrade will impact your home’s value, there are a few factors you should consider. First, think about where you live. If the summers are hot and humid or the winters are frigid, a high-efficiency HVAC system has more value to prospective buyers. In this scenario, the value of your home should increase at a higher rate.
You should also consider your existing HVAC system. If your unit is more than 10 years old, the quality of the system might not matter. Even if you’ve consistently maintained the unit over the past decade, buyers might look less favorably at homes that have older units, which could reduce the home’s value.
The right HVAC upgrade can increase the value of your home by as much as 10%. This increase can be even higher if you have an older system that malfunctions on a regular basis.
Obtaining the Best Upgrade
The largest increases in home value following an HVAC upgrade occur when you buy one of the best units on the market. There are several factors to consider when searching for the best upgrade.
Select a Unit that Has High SEER Ratings
Many modern buyers want to purchase a home that’s already energy efficient. An efficient home leads to lower bills and a more comfortable living situation. The value of your home should scale with the unit’s efficiency, which means that a more efficient system should result in a higher home value. Look for units with SEER ratings between 16-23. The most efficient units have SEER ratings above 20. Choosing an HVAC system with a rating of 16 or higher also means you may qualify for additional tax credits of up to 30% of the cost of the unit.
Select the Right Size
Every HVAC unit has a different heating and cooling capacity, which determines how much money you save every month. If you purchase a system that’s too small for your home, it will need to work harder when trying to regulate your home’s indoor air temperature. If the unit is too big, your energy costs will invariably be higher. An HVAC professional can help you identify the system capacity that’s right for the size of your home.
Consider Unit Type
There are several types of HVAC systems for you to consider, each of which can boost your home’s value. For instance, a central HVAC system often includes an indoor unit and outdoor unit. These systems are capable of heating and cooling your entire home. You could also consider an electric heat pump, which will move heat instead of generating it from a fuel source.
One type of heat pump that’s widely adopted among modern homeowners is a ductless mini-split, which is a smaller system that’s comprised of one outdoor unit and multiple indoor units that are positioned in different areas around your home. Each indoor unit heats and cools one room without using ducts. You might also be interested in a geothermal heat pump, which obtains heat from the ground instead of the outside air.
Think About Location
Along with the climate you live in, it’s also important to consider where your home is located. If you’re buying a gas grill but don’t want to go through the hassle of purchasing propane, you’ll need to have access to natural gas in your area. If you choose to purchase a split system, do you have enough space outside your home for the installation of a second unit?
If you believe an HVAC upgrade is right for your home, our technicians at Revival Heating & Cooling can help guide you through the purchase and installation process. We can work on every HVAC make and model that you might want to install in your Vancouver, WA home. HVAC systems require the perfect fit to avoid a shortened lifespan and high energy costs.
Along with efficient installation services, our team also administers repair and maintenance services on all HVAC systems. Consider requesting our air quality monitoring and improvement services that will help keep your home’s indoor air clean and free from contaminants. Call Revival Heating & Cooling today to schedule our installation services.