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When it comes to the overall value of your home, there’s no denying that a new HVAC system can play a significant role. As a matter of fact, it’s estimated that more than $8,000 in annual energy costs can be saved with a new HVAC unit. So what should you do to ensure that your home’s property value stands out from the crowd? It’s time to upgrade your existing HVAC system and reap the benefits.

Does A New HVAC System Increase Home Value?

Can a new HVAC system increase home value? Simply put, the answer is yes – but that is not without a few factors to consider.

First is your location; unbearably hot and humid summers create a greater demand for an effective HVAC system, and would have a more significant impact on your home’s value. The second is the age and quality of your current HVAC system. It may not be the first thing a prospective buyer will look for, but if absent or malfunctioning, a poor HVAC system could devalue your property.

So does a new HVAC system add value? Yes, but it will be far more valuable if your current system is in a state of disrepair or if you live somewhere with a warm climate. A more advanced system is sure to impress potential buyers, and could be the difference in choosing between your own home and another.

Tips on Choosing an HVAC System That Boosts Your Home’s Value

If you’ve decided that replacing your entire HVAC system is the best answer for your home, then you should know what to look for while shopping. Here are some tips on choosing the HVAC system that will boost your home’s value the most.

1. Choose a System with High Energy-Efficiency Ratings

Buyers today want to find a home that’s energy-efficient. This is because it cuts down their bills and makes living easier. While you shop for a new HVAC unit, learn about the FTC’s Energy Guide labels for home appliances. Installing a highly efficient unit in your home will boost its market value.

2. Choose the Right Size

Don’t try to cut costs by buying a system that’s the wrong size. Heating and cooling units that are too small for homes will work harder to reach the right temperature. Units that are too big will cost you money that you didn’t need to spend.

Talk to an HVAC professional about the best size you need for your home’s square footage. Choosing the perfect size will be cost-efficient.

3. Consider Location

The location of your home is an important factor when choosing the best AC brands. What is the temperature like in your area? The US Department of Energy advises homeowners in colder climates to invest in high-efficiency units.

Another factor to consider is the setup of your home. If you’re opting for a gas boiler and don’t want to buy propane, are you located near a source of natural gas? Do you have a place outside your home to install a second unit for a split system?

4. Consider Adding a Heat Pump

Heat pumps are an essential part of split cooling or heating systems that increase efficiency. A heat pump supplies heating in the Winter and cooling in the Summer instead of traditional systems with a furnace and AC unit. Adding a heat pump to your system may increase its value.

A new HVAC can increase your home’s value by up to 10%. The increase will be greatest in properties with old HVAC systems that are almost obsolete, and houses in warm, humid areas. If a prospective buyer arrives at your home, they may not notice a shiny new unit, but they will likely note the absence of one, or be put off by the sight of an older unit that will soon need to be repaired or replaced.

How Much Does a New AC Unit Increase Home Value?

It is estimated that a new AC unit can increase your home’s value by up to 10%. As is the case for the entire HVAC system, this will depend on a few factors, like location (the value will be greater in warmer, humid climates).

A new air conditioning unit typically increases the value of a home from anywhere between 2.5% and 10%. Whichever is the case for your home, a new AC unit will increase its value by either a small amount or a considerable one. One of the biggest factors in purchasing a new AC unit is to avoid detracting from the value of your property with a faulty, broken, or old unit in its place.

The bottom line is that a new HVAC system can significantly improve the comfort level in your home. While the cost of a new heating and air conditioning unit can add to the overall cost of your home, it will also add to the overall value of your home. It can also increase the resale value of your home.