If you’re thinking about selling your home in the near future, you’ll most likely pay more attention to the home renovation and improvement projects you’re embarking on.
For most people, that could mean kitchen or bathroom remodels or some landscaping work. However, more homeowners are starting to choose upgrades like installing a new HVAC system. Does a new HVAC system increase home value, especially in the Glastonbury area?
SM Mechanical Services, home of the best HVAC technicians in Glastonbury, CT, covers the details in this post.
A New HVAC System Can Increase Your Home’s Value
If you’re wondering if a new HVAC system can improve the value of your home, the answer is that it can. Most potential homebuyers will appreciate any upgrade that will help them avoid paying for repairs or a replacement soon after taking over the property.
A new HVAC system means they won’t have to worry about replacing their air conditioning or furnace anytime soon, which could mean saving up to $20,000 or more, depending on the state of the entire HVAC system.
Of course, a new HVAC system is not enough to make a potential buyer ignore other obvious downsides to buying a property.
However, with all other things being equal, most potential homeowners will choose a home with a new HVAC system over a comparable one without a new HVAC system or one that the HVAC tripped the circuit breaker during a viewing!
Why Is a New HVAC System a Big Deal for Potential Homeowners?
Potential homeowners will look upon a home with a new HVAC system more favorably because of the following reasons.
Improved Energy Efficiency
HVAC equipment technology has come a long way over the last decade. A new AC unit or furnace system will use far less energy when delivering hot or cool air than one installed ten years ago or earlier.
Savvy homeowners know to value energy-efficient systems more because HVAC systems account for half the energy usage in any home. The savings from having modern, high-efficiency systems can add up pretty quickly.
Eco-Friendly Components
In January 2020, the US prohibited the production of the R-22 refrigerant after evidence showed its contribution to global warming. Due to this change, AC systems running the refrigerant are now far too costly to maintain. Retrofitting them to start using newer refrigerant is also cost-intensive.
So, potential homeowners will most likely avoid any home with an R-22 system installed.
More Space
Modern HVAC systems are generally more compact than their older counterparts. Therefore, installing them will free up space, which potential homeowners are very likely to value.
The Expected ROI From Installing a New HVAC System for Your Home
Does a new HVAC system increase home value? Yes! By how much? The numbers will vary. However, many sources agree that a new HVAC system will increase the value of your home by 5% to 7%. You can also expect to get an ROI of up to 50% after the investment.
Beyond the tangible ROI, you should also consider looking at the intangible ROI. The new HVAC system could be the difference between your home staying on the market longer (leading to your real estate agent advising a reduction in the asking price) and a potential buyer choosing your home ahead of a similar one shortly after listing.
How To Choose an HVAC System That Can Increase the Value of Your Home
If you want to choose an HVAC system that can improve the value of your home, you have to pay attention to the components you choose. Here are a few details to keep in mind:
- Choose a popular brand. Given two HVAC components in a similar price bracket, most people will assume that the more popular brand is more valuable than the lesser-known brand.
- Pay attention to the energy efficiency calculations. It’s not enough to choose the latest HVAC equipment from a popular brand. You need to be sure that the HVAC equipment you choose is a good match for your home in terms of size and capacity. Otherwise, the energy efficiency ratings won’t matter.
- Get a professional installation. Your choice of installer can affect the efficiency and longevity of your HVAC equipment. The whole idea behind buying a new system is to avoid repairs for a few years. The purpose is defeated if you put your HVAC unit in the hands of an inexperienced contractor.
Can Repairs and Parts Replacements Work Instead?
Buying a new HVAC system is a significant expenditure. Therefore, it makes sense that you’ll want to avoid it if possible. One way you might be able to do that is to replace some parts of the HVAC unit to get working optimally again for a few years. However, this depends on the current state of the system. Some factors that will determine if replacing parts will work include the following.
The System’s Age
An HVAC unit that is already more than 15 years old is going to be hard to repackage. Most people will immediately recognize an old HVAC system, as all the modern ones have a sleeker, more streamlined look. Also, finding replacement parts for old models of HVAC systems might be tricky.
The Cost of the Parts Replacement
Replacing the parts has to make financial sense. If you’re going to spend more than $4,000 on replacing parts for the HVAC system, you will most likely get better value by going for a new one. So, if the AC compressor failed inspections, for example, you should consider a replacement.
Get Quality HVAC Solutions in Glastonbury, CT, From SM Mechanical Services, LLC
Now you know the answer to the question, “Does a new HVAC system increase home value?” Are you looking for an HVAC company to help install the replacement systems for your property?
Perhaps you need expert guidance on how much furnace and AC installation cost or whether to go for parts replacement and retrofitting instead of complete replacement. Our experienced team is ready to help.
Call SM Mechanical Services in Glastonbury, CT, today at (860) 530-2671 to schedule a consultation.