Do HVAC Upgrades Add Home Equity?

People spend lots of money and time on the renovation of their houses. The renovation may be done to increase comfort or necessity, but sometimes house owners think to do renovation to increase the resale value of their property if they are thinking of selling it shortly; those renovations are done by keeping the ROI in mind.

The HVAC upgrade is one such upgrade that homeowners always think to do but are unsure about its ROI. Many people always have a question: Do HVAC upgrades add home equity? An HVAC upgrade will increase the value of your property. It is a long-term investment and has a significant impact on the value of your property.

HVAC upgrade is the first thing you should do when you are renovating your house with the plan to sell it, this type of home improvement is mainly dominated by any homeowner and flippers.

The key to maximizing your return on investment with renovation is avoiding costly renovations like spending dollars on the kitchen, bathroom, and bedroom upgrades, recommending you invest in the things that increase the overall comfort of your home. It should be the needs of every person.

Here is how and why HVAC upgrades will increase your home equity.

Why Should You Invest In Your Home’s HVAC System?

Upgrading like new hardware fittings, appliances, and lighting fixtures are excellent but updating the HVAC system is needed if the old one is broken or not working correctly. When any buyer comes to your home intending to purchase it, he will notice the HVAC system, and if they find a very old or broken unit, then mostly the buyer will walk away; he will not even check your home twice if the home lacks most necessary heating or cooling unit.

Recommending you take HVAC renovation thoughtfully and prioritize it over all the different luxury upgrades. You may think that the cost of the new HVAC system is high, but you can check the NAR report, which states that the HVAC upgrades offered more ROI than other upgrades; the return can be up to 75%.

Replacing or Repairing Your Ductwork

HVAC upgrade is not limited to upgrading the central HVAC unit. Changing the duct or repairing it also increases your home’s overall value. If your home’s duct is older than 12 to 15 years, you should consider replacing it. Many reports have proved that about 30% to 35% of average home energy cost is related to ductwork issues. The damaged duct will result in increased operating costs and affect the airflow.

The life of ductwork is about 20 to 22 years. Still, mostly the ducts start rusting or lacking air within 15 years, even early in some conditions. Replacing the ductwork will improve the performance of your HVAC unit, which is indirectly responsible for increasing your home’s equity.

Questions to Ask Yourself While Making a Decision On HVAC Upgrade for Increasing Home Equity

1. Does Your Existing HVAC Unit Work Properly?

When selling your house, if any buyers ask you questions about the age of the HVAC system, then it is good to have the HVAC unit installed less than seven years ago because the new homeowner will get about 7 to 8 years of use left in it. In this condition, you should not upgrade to a new HVAC system to increase the home equity because the upgrade will not significantly affect the deal.

If your home HVAC system is older than 15 years, it is essential to replace it because it will affect the overall cost of your home.

2. Can You Repair and Fix Miner Problem Rather Than Replacing HVAC System?

It is recommended you should not replace your HVAC system if installed less than ten years ago. If needed, you should do the required repair to increase the airflow and overall performance. A simple formula calculates whether you should repair your existing HVAC unit or purchase the new one, multiply the system age by the cost of repair, and if your answer is more than $5000, you should replace the system rather than repair it.

3. Does Your Location Need a Heating/Cooling System?

The location of your home will also affect whether the HVAC system upgrade will add home equity or not. If you live in an area like Key West, Florida, then upgrading the heating system is a waste of money because the temperature in this location is warm throughout the year.

But if your home is located in a location like Anchorage, where you will find inches of snow per year, then upgrading your HVAC heating system will significantly increase the value of your house. Everything depends upon the location; upgrading to a solar heating system will also be intelligent if your home is in a sunny region.

4. Currently Installed HVAC Unit Is Energy Efficient Or Not?

Upgrading to an energy-efficient or solar-powered HVAC system will be brilliant because buyers always prefer efficiently labeled homes. According to the US Green Building Council and energy.gov report, a house equipped with energy efficient HVAC system sees about 10% of the higher selling price.

We highly recommend upgrading to the latest, innovative, and energy-efficient system if you currently have an old or less efficient HVAC unit. When choosing the new HVAC system, you should take the professional help and ask him to conduct a professional energy audit with an HVAC load calculator and HVAC home auditor.

If upgrading to the HVAC system significantly affects the value of your property, then you should go for the upgrade. If there is no or much less need for an HVAC system in your area or you have an HVAC system installed less than 7 to 8 years ago, it doesn’t make sense to invest in HVAC renovation because, in this condition, it will not affect your home equity.

Digital Marketing Manager at ENERGY DESIGN SYSTEMS, LLC. responsible for developing, implementing, and managing Digital Marketing Strategy & campaigns that promote a company and its products and services.