Are you moving soon? Investing in your home first attracts more potential buyers and may let you increase your asking price. There’s no doubt that installing a new HVAC system boosts home value—the question is by how much. Consider the return on investment you can expect from an HVAC install and whether the upgrade is worth it for you.
What ROI to Expect from Replacing Your Heating and Cooling System
While you’re unlikely to get a full return on investment, installing a new furnace and air conditioner could increase your home’s value by up to 5 or 10 percent, or roughly $2,500 to $3,000. Considering that HVAC installation costs are about $5,000 to $11,000, the ROI is about 20 to 30 percent.
Still, sometimes getting a return on investment is about more than just raising your asking price—it’s about appealing to homebuyers and getting bids on your property. An old furnace and malfunctioning air conditioner are turn-offs for most buyers, while a brand-new HVAC system is a huge selling point. In this way, replacing your outdated system before you move could make the difference between selling quickly and lingering on the market for months.
Of course, these figures are just approximations. Consult a real estate agent for a more accurate estimate based on your home’s location, condition, and current market trends.
Should You Replace Your HVAC System Before Moving?
Not everyone needs to upgrade the furnace and air conditioner when moving. However, here are the signs that you should replace your HVAC system before you sell your house:
- Your heating and air conditioning equipment are outdated: A system over 20 years old won’t attract buyers, especially those who are environmentally conscious and looking to save on energy bills.
- Your furnace or air conditioner is non-functional: Home appraisers verify whether the HVAC system works as intended. Any broken appliances will lessen the value of your home and turn off buyers.
- The HVAC repair cost is high: In some cases, HVAC repair or retrofitting is all you need to get the unit working properly again. However, if the repair estimate is 50 percent or more of the replacement cost, you’re probably better off replacing it.
Choosing an HVAC System to Increase Home Value
If you decide to replace your furnace and air conditioner, find a model that will add the most value to your home. Here are the qualities to look for:
- Seasonal energy efficiency ratio (SEER) of 15 or higher
- Proper equipment size to meet your home’s heating and cooling needs
- Low noise rating
- Compact physical size to take up less space
AAA Heating & Air would be happy to assess your existing HVAC system, recommend a cost-effective repair or replacement, and carry out the job quickly and professionally. We are all about transparency, so we’ll make sure you know the costs and potential return on investment before our work begins. Call us at 803-653-6163 or contact us online to learn more. We proudly serve Lexington and Columbia, SC, and the surrounding area.