Every homeowner needs to know the value of their home. It’s important if you’re selling, of course, but your home is both a resource and your largest investment, so the exact number has considerable value on any number of levels.
There are many factors that go into determining the resale value of your home, but for most homeowners, the role of the HVAC system isn’t one of the first things that comes to mind.
Which is too bad, because it matters a great deal. An older, balky HVAC system can cost you thousands of dollars when you go to sell, and a newer one can help make you just as much cash when it comes to energy savings. In this blog post we’ll explore the exact role your HVAC system plays in determining your home’s resale value.
What Do Home Buyers Want in an HVAC System?
There’s little doubt that homebuyers in Massachusetts have become far more savvy than they used to be. It’s an expensive market, after all, and for some, knowing the resale value when they go to sell is almost as important as some of the primary features they list in their search.
For most buyers, the HVAC system is an item on a checklist. They’re not savvy enough to inspect or test it, of course, but they do want to know what kind of system you have, when it was installed and what kind of maintenance and repairs have been done while you’ve owned your home.
So that’s the first thing you need to take care of when you go to determine the resale value of your home.
An outdated HVAC system can lower your home’s appraisal value when you approach your agent. An HVAC system that’s gone years without regular maintenance and updates will raise suspicion among most buyers, so if you have a maintenance plan from a company like 128 Plumbing, that will help put money in your pocket when you go to sell. We can help Massachusetts residents reduce their home energy use by making it more energy efficient.
Your Home HVAC System and the Peace of Mind Factor
If you have a newer HVAC system and you’ve done that ongoing maintenance to system elements like ductwork, you’ve basically bought peace of mind. Buyers want that same peace of mind when they make an offer, and most are willing to pay to get it.
Let’s take an example of how this might work. Say you bought a new HVAC system a year or two ago and you spent $10K.
Maybe you were even smart enough to capitalize on the rebates offered by Mass Save and the Inflation Reduction Act, and maybe you even purchased a heat pump or hybrid HVAC system to future proof your home.
Those purchases tend to impress many buyers. They can move in knowing they won’t have to pay for costly repairs or a complete HVAC system replacement, and that can add dollars to their offer.
In Massachusetts, that matters. It’s one of the most competitive home buying markets in the country, even with higher interest rates, so your investment in an HVAC system can actually be a key element in starting a bidding war.
Your HVAC System and the Home Comfort Factor
Homebuyers tend to evaluate many factors when they assess how comfortable they’ll be if they buy your home. These include the neighborhood, the area, the level of privacy they’ll have and the overall condition of your home.
Make no mistake, though, the HVAC system plays a major role. Regardless of what season you choose for the sale, buyers will be assessing the temperature of your home, the state of your windows and insulation, the quality of the indoor air, and the ability of your HVAC system to keep them warm in the winter and cool in the summer.
They may even ask you for detailed information about what you spent maintaining, repairing and upgrading your HVAC system, so make sure you have those numbers handy.
Energy Efficiency, Installing Central and Your HVAC System
Would-be buyers get nervous about many things when they evaluate your home, and energy costs can be near or even at the top of their lists.
They’ll want to know what you paid to heat and cool your home, so that’s another set of numbers you need to have available.
If you’ve taken steps to cut your costs by becoming more energy efficient with your HVAC system, it means they can count on those savings when they move in.
Heat Pumps and Added Home Resale Value
Heat pumps have been in the news a great deal in the last year or two, especially given the rebates that are available through Mass Save and the Inflation Reduction Act.
Home buyers expect to find modern, updated HVAC systems in any home they’re considering buying, and a study in the journal Nature Energy put the value of a heat pump at $10,400-$17,000.
Home Selling Disclosures and Concessions Related to Your HVAC System
Now that we’ve looked at the extra money you can get from an HVAC system upgrade, let’s talk about the other end of the spectrum.
For many buyers, the home inspection is a pivot point when it comes to the value of your HVAC system and sell gin your home.
You’re required to disclose the age of your HVAC system, and if it’s more than 10 years old that will invite extra scrutiny during the home inspection.
You may even have to make concessions to meet the demands of prospective buyers who have made a high enough offer. That means deducting the cost of a furnace, a central AC replacement unit or even a heat pump.
Installing Central and Your HVAC Refrigerant
Another issue that may surface if you have an older HVAC system is that of replenishing the coolant. In 2020, the EPA banned the remaining production and import of a refrigerant called R-22, which are sometimes found in residential A/C systems.
This refrigerant damages the ozone layer, so if your home has an AC unit that was installed before 2010, it may use this substance, which means two things:
- Servicing your AC system may rely on recycled or stockpiled parts.
- If your AC system relies on R-22 and it breaks down or needs repair, it will be much harder and possibly much more expensive to find parts to fix it.
The solution is to update your HVAC system with newer equipment, which will save homebuyers money during the sales process.
Home Value Estimates for Your HVAC System From 128 Plumbing
If you need help determining the role your HVAC system plays in determining the value of your home, we can help. At 128 Plumbing, we’ve inspected and serviced thousands of HVAC system both old and new, and we know the value of all the parts that are involved.
The process starts with a phone call, and the numbers are (888) 419-4233 or (781) 670-3261. We’ll answer your questions, give you the appropriate value numbers, and tell you what you need to update to increase the value of your home.
To get more information about how this works, you can also go to 128Plumbing.com and start a live chat. We also have some great blogs and articles there to help educate you about the value of your HVAC system, and we can help you add to that value in the best way possible.