How Upgrading Your HVAC Builds Home Equity
Upgrading your HVAC system is a great way to increase your home equity. Not only will the money you invest in your HVAC system come back to you should you ever decide to sell – you can reasonably expect to make back even more money than you spent in the first place.
According to the National Association of Realtors, HVAC upgrades have an average return on investment (ROI) of 71% – 15% higher than the average ROI of other types of home upgrades. And as a bonus, you’ll also enjoy greater comfort as you live in more agreeable temperatures, as well as pay significantly lower utility bills.
Here are just a few HVAC upgrades that will help you build home equity!
Replace Your Old HVAC System
Have you noticed that your energy bills are steadily climbing, too much humidity in your home, or excessive dust despite regularly replacing your HVAC system’s air filters? There are many such telltale signs that your HVAC system has finished its tour of duty. Replacing your failing HVAC system now will significantly increase your home’s value, as a potential buyer won’t have to anticipate replacing it themself.
As a general rule, you’ll want to replace your AC unit if it requires a repair which would cost at least half as much as a new unit. Energy Star also advises replacing your air conditioner if it is more than 10 years old. Installing a modern, energy-efficient model can save you as much as 20% on cooling costs.
Furnaces boast greater longevity. An electric furnace typically lasts up to three decades, while a gas system warrants replacement in about 10 to 15 years. Regardless of whether it’s electric or gas, a failing furnace offers several signs that its time is up including loud noises, inexplicable temperature fluctuations, and of course higher heating bills. A new, energy-efficient furnace will gradually pay for itself as it lowers your heating costs by 15%.
Install Central Air
Most modern homebuyers consider central air a necessity – and they are willing to pay for it. Air-conditioned homes sell for 2.5% more on average, yet homes with newly installed central AC systems sell for 10% more on average. In effect, adding central AC to your home may net you a 100% ROI. (Plus you’ll be more comfortable in the meantime.)
Upgrade Your Air Filtration System
Regularly cleaning your ventilation ducts and replacing your HVAC system’s filters are both effective methods for improving the air quality in your home. But as environmental pollution increases, homebuyers are increasingly attracted to homes that have more advanced air filtration systems in place. HEPA filters, which are designed to remove 99.97% of airborne particles as small as 0.3 microns in diameter, are a good starting point, but more high-tech air filtration systems including UV light air and whole-home air purifiers create even greater appeal for potential homebuyers.
Install a Smart Thermostat
For more than 40% of homebuyers, a programmable thermostat is the most important technological feature their next home could have. This is because smart thermostats save around $131 to $145 on annual energy bills. A new smart thermostat can easily pay for itself in as little as two years!
Install a Multi-Zone System
A multi-zone system enables the homeowner to easily control the temperatures in every room of their house. Nearly 40% of homebuyers would like their next home to have a multi-zone HVAC system, as it saves significant energy costs while simultaneously promoting greater comfort. Installing a multi-zone system in an existing home typically costs between $2,000 and $3,300 depending on the number of zones and whether they will include both heating and cooling. But since fewer than 15% of homes currently have multi-zone systems, adding one to your own will greatly enhance its appeal.
Upgrade Your Windows and Insulation
Although they are not technically part of your HVAC system, your windows and insulation both have a marked impact on your home’s heating and cooling costs. Replacing a home’s single-pane windows may save as much as $465 a year; even replacing its double-pane windows may save over $100. Likewise, adding new insulation to a home saves an average of $200 a year. Well-insulated homes do sell for more on the market, so new windows and insulation will increase your home equity while simultaneously saving you money. That’s a win-win.
Would you like to learn more about how upgrading your HVAC system will build home equity? Then you’re welcome to contact us. PrairieSons helps hundreds of homeowners throughout the greater Sioux Falls, SD area to enjoy lower heating and cooling bills as well as improve their home values every year!