The HVAC industry posts record profits regularly. Everyone wants heating and cooling and now we are living in a Covid-19 paradigm, the need for home comfort has increased. For these reasons, it’s probably fair to say that you will add value to your home if you have a good HVAC system installed. This is a great way to stand out from the crowd and yet many home sellers don’t have this as one of their priorities when it’s time to sell. In this article, we will examine this issue in more detail to help you make a more informed decision.
Is a New HVAC System Worth the Investment?
When you’re trying to market and sell a home, it makes sense to stick to your budget to maximize the profit margin. But, there is a point of diminishing returns and if your home isn’t selling, the problem may be deeper than simply changing the decor. A recent HVAC report revealed that approximately 34% of homeowners use electricity as their primary fuel source for heating. If your heating system is low-efficiency, both you and a potential future home buyer will pay more in energy bills.
When you consider the cost and efficiency of your current HVAC system, it’s important to know if the investment in a new system is worth the expense. If your system is running under 80%, it’s regarded as a low-efficiency HVAC system. If this is the case, installing a new system will certainly lower your monthly energy costs. This is helpful when you’re trying to secure a sale because a potential buyer can see that their energy bills could potentially be 20% lower than expected. This is the kind or home improvement that anyone can get excited about and it could make the value rise significantly.
If you’re starting to come around to the idea of investing in a new HVAC system, here are four things that you may want to consider, they are:
1. Local Weather Conditions
If you don’t need an aircon in your area, it’s not a great investment to upgrade or replace the AC system. To determine the viability, take a look at the seasonal temperature changes and you may be surprised by the results.
2. Evaluate Your Current HVAC System
Your HVAC system is complex, it works hard, and over the years a significant amount of wear and tear takes place. Dirt and dust deposits can accumulate in the components which lower the overall performance and energy efficiency. There may be minor damage to the compressor, condenser, blower unit, and other key components. If the system isn’t charged with enough refrigerant, it will not perform well. If the heat exchanger is cracked, it can release carbon monoxide and it’s a fire risk.
As you can see, HVAC systems are complex, a lot can go wrong and this is why it’s important to schedule annual maintenance. A well maintained system runs better, uses less energy and it will be less prone to failures. This can be a good selling point if you lack the budget for a full HVAC system replacement. Your local certified heating and cooling specialist can evaluate the state of your system and advise you on your options. If significant repairs are needed a replacement may be a cost effective solution.
3. The Condition of the Ductwork
Unless you have window AC units, there will be a network of ducts running throughout your home. The ductworks distribute the treated air to each home and it comes from the vents. If the ductwork is in bad shape it will affect the performance and energy efficiency of your entire HVAC system. Even if you replace your system and leave the damaged ductwork in place, it will still underperform and waste energy. It is possible to repair ductwork but if there are a lot of cracks, breaks, and bad seals, it’s usually less expensive to replace it.
4. A Partial HVAC System Replacement
If you’re selling your home on a very tight budget, you may feel that a new HVAC system is unattainable. It is possible to choose a low budget option, but this can be counterproductive for a potential buyer. Another temptation is to install a smaller unit that isn’t large enough to meet the heating and cooling needs of your home. But, this can only lead to more problems later and it can deter potential buyers.
A better option is to hire your local HVAC company and ask them for a system retrofit. Select components can be replaced to boost the performance and energy efficiency. This is a good stopgap when you’re not planning on staying in the home long-term, and it’s a fair option for potential buyers too. It may be tempting to save money with a DIY replacement, but take care, the parts must be matched carefully or the retrofit will not make any appreciable difference.
It’s important to understand that retrofitting will only work if your HVAC system is in good overall shape. Even an older system that’s been well maintained can benefit from a retrofit to extend the useful lifespan by a few years. But, if your HVAC system is very old and/or it’s in poor shape a retrofit is simply not a good option. In this case, the only recourse is a full system replacement, or you could use a lack of heating or cooling as a negotiating tactic for a sale at a lower price.
The best way to evaluate the viability of retrofitting your HVAC system is to use a calculation known as the “$5,000 rule”. Take the age of your system and multiply it by the cost of a repair. If the figure is $5,000 or more it’s a better option to get the system replaced.
In Conclusion
An HVAC system can last from 10 up to 20 years with regular maintenance and every home buyer wants a heating and cooling system in place when they move in. A modern system with superior performance and energy efficiency can certainly add value to your home. If you want to learn more about installing, retrofitting, repairs, and maintenance for your HVAC system, contact your local heating and cooling specialist today.