If you’re looking for ways to increase the value of your home, you might be considering a major project like remodeling your kitchen or bathroom. While these are definitely good options that can increase the value of your home and make it more appealing, it’s highly unlikely that you’ll ever recoup the full amount you invested in the project. On the other hand, upgrading your HVAC system with a new air conditioner will typically always increase the value of your home by at least the amount you spent on the new unit. In fact, it could potentially increase your home’s equity by much more than you spent due to the added energy savings the new unit provides.
How HVAC Upgrades Compare to Other Home Improvements
If you think that you might sell your home sometime in the near future, it’s always a good idea to consider your options for boosting your home’s value. Still, you need to think carefully about what types of projects you undertake as many home improvements will cost more than the value they add. This is especially true for major remodels as they will typically never pay off.
Studies have shown that, on average, a bathroom or kitchen remodel will only increase your home’s value by around 60 to 70% of the cost of the project. This means that if you spend $25,000 on a new kitchen and then sell your home soon after, most likely all you’ll do is end up wasting several thousand dollars.
Replacing your air conditioner is an upgrade that will almost always pay off, and this is especially the case if your existing AC is more than 10 years old or doesn’t cool your home effectively. If your home has a new AC, prospective buyers will feel much more confident that the air conditioning works well and that the system is energy efficient.
The fact that the new AC unit will be under factory warranty is also a huge plus in terms of the value of your home and its appeal. This is because prospective buyers will feel confident that they won’t suddenly have to shell out a huge amount of money on costly HVAC repairs and maintenance. If you are looking to sell your home, evidence of a low monthly power bill during the hottest months of the year can make your home stand out in a competitive market. This won’t change the bank’s value of your home but it will make a difference in the real estate market.
Factors to Consider Before Replacing Your AC
While a new AC will almost always increase the value of your home, there are still situations where replacing your old unit might not make sense. The same is also true for your home’s furnace. For instance, if your unit is only a few years old and is still working well and under warranty, a new unit probably won’t increase your home equity by all that much. The only exception is if you upgrade to a much more energy-efficient unit than what you currently have.
Another factor to consider is the condition of your home’s ductwork. Duct systems will typically only last for a maximum of 20 to maybe 25 years, and most ductwork will start to experience lots of issues after 15 years. If your ductwork is old, damaged or leaking, upgrading to a new AC alone won’t have a huge impact on the value of your home. The new unit also won’t make that much of a difference in terms of the effectiveness of your cooling system unless you also address your ductwork.
Home value is based on market value as well as the condition of your home. When it comes to your home’s long-term value, keeping your home within a certain temperature and humidity will reduce certain kinds of wear and decomposition like mold or dry rot. This will allow you to keep your home value high while preventing the need for certain upgrades or repairs.
Professional Cooling Installation and Services
At WK Mechanical, Inc., we have been proudly serving customers in Middletown and the Hudson Valley area since 1945. If you’re looking to upgrade or replace your AC, furnace or heat pump, our certified HVAC technicians can help you choose the best model for your home. We are a Lennox Premier Dealer, and we offer a large selection of energy-efficient heating and cooling equipment for both residential and commercial properties.
Our company is EPA certified, and we are members of the Air Conditioning Contractors of America. Our HVAC technicians are also NATE-certified and highly trained. We also work on boilers, hydronic systems and generators, and we offer a range of indoor air quality services as well. Give us a call today to learn more about your AC replacement options or any of the other services we provide.