Adding Home Equity by Upgrading Your HVAC System
The home buying market is booming. New and used home inventories at an all time low. Consequently, buyers are finding it increasingly difficult to find quality homes to purchase. Investors are buying up homes at an increasing rate further making it difficult to find a good home to buy. So, it may be a hard decision to upgrade or replace your HVAC system in this market.
Additionally, according to studies like Housing Perspectives from the Harvard Joint Center for Housing Studies, there has been an increase in spending on home renovations and repairs of above 7% throughout 2019. Homeowners are making greater investments into their homes with remodeling improvements.
So which renovations will make the biggest impact if you are in the market to sell your home? Which investment will net the biggest return when it comes to what buyers look at when they make the decision to buy an existing home? Many people spend thousands on renovating bathrooms and kitchens but an often-overlooked improvement that could net a good return on investment is your HVAC system.
Buyers Notice an Old, Broken Down Looking AC
While buyers may not notice a brand-new AC unit initially, they will certainly notice an old looking outside unit when they walk around the house. Also, the inspector that performs the home inspection will certainly comment on the age of the HVAC system. Air conditioning systems are major purchases. Because of this, a potential buyer might think that the AC system needs to be replaced immediately or even in the near future. This usually results in low bids or simply passing on the home. It is easy to pass up some shiny appliances or even older looking cabinets, but a buyer will not look twice at a home that needs cooling systems for homes in southeast Texas.
According to a report from the National Association of Realtors, a newer HVAC system has a higher average return on investment than other remodeling projects, with ROI up to 71%. So a serious consideration to replace your old HVAC system for a high efficiency system can significantly improve your ability to sell your home at the best price.
So How Do You Know If You Should Replace Your HVAC System?
Potential buyers will absolutely look at the age of the HVAC system when considering buying a home. If you HVAC is less than 10 years old, chances are a new HVAC will not make a difference in their minds in terms of value. If your HVAC system is over 15 years old, then you may want to consider replacement. Buyers will find our if the HVAC system is over 15 years old. Your HVAC may be working great after 15 years. A buyer knowing that it may need to be replaced soon will weigh heavily into their buying decision.
Even if your HVAC seems to be working well, any HVAC over 15 years old may have parts and components that are no longer available. You may want to get an HVAC company like Majestic AC to come out and do an assessment. They can give you a no-obligation assessment about upgrading your HVAC system. Not just for resale but for your peace of mind.
Know your Market
Southeast Texas summers are very hot and humid. A good, working air conditioner is not only a luxury it’s a requirement. If you are in the market to sell your home, talk to a professional at Majestic AC. We can discuss option about upgrades and replacement that will benefit your home selling process. We will let you know if repairs will work best or if a whole system replacement is in your best interest. It’s a sellers market out there so put your home’s best foot forward. Smart remodeling decisions will net you the best return on investment.