HOW TO ADD HOME EQUITY THROUGH HVAC UPGRADES
PLEASE NOTE, THIS ARTICLE WAS TAKEN FROM Ali Dunlap from an article January 28, 2020 https://www.hvac.com/blog/how-to-add-home-equity-through-hvac-upgrades/
According to Harvard’s Joint Center for Housing Studies, Americans are spending increasingly large amounts of money on residential remodeling projects each year and seeing less and less of a return. From 2017 to 2018, the money spent on home remodels nationwide increased by 7.5%, totaling nearly $340 billion. Yet, the average ROI for these projects was only 56% — a decrease of 12% in just one year, as stated in a survey by Remodeling Magazine.
When you’re planning a renovation project in preparation to sell your home, the key to maximizing ROI and avoiding costly renovation mistakes is knowing which upgrades will add the most value. HVAC upgrades will always be a safe bet and a smart investment — and yet, these home improvements are some of the most commonly overlooked by homeowners and flippers.
In today’s market, it’s riskier than ever to make the wrong renovations. You could end up spending thousands of dollars on kitchen and bathroom upgrades that never pay themselves off. Below, you’ll find an explanation of why HVAC upgrades are your best bet, backed by a list of upgrades that will almost always pay off and help you sell your home faster.
WHY TO INVEST IN YOUR HOME’S HVAC SYSTEM
Upgrades like refinished cabinets and new countertops are nice to have, but an updated HVAC system is critical. While homebuyers won’t notice a brand-new HVAC system, they’ll definitely spot an old or broken one — and it might cost you the sale. A prospective buyer probably won’t automatically walk away from a home without all the newest gadgets, but they won’t even look twice at a home that lacks basic heating and cooling abilities.
As such, you should take HVAC renovations quite seriously and make them a priority over new flooring, paint, and other aesthetic or luxury upgrades. You might hesitate when you look into the costs, but The National Association of Realtors (NAR) reports that HVAC remodels have a higher average return on investment than most other types of remodeling projects, yielding a return of up to 71%.
QUESTIONS TO CONSIDER WHEN UPDATING YOUR HVAC SYSTEM
The secret to knowing which HVAC upgrades to make is understanding which ones are best for the kind of house you have and the people you intend to sell to, according to the program manager of the National Association of Home Builders (NAHB). You’ll want to take into account the region, the age and size of your home, your budget, and the layout of your property. With these factors in mind, you can get an idea of your HVAC system upgrade options by clicking here or by asking yourself the questions listed below.
Is your current HVAC system still working well?
During the home-selling process, you can bet that people will ask you the age of your HVAC system. If it was installed less than 10 years ago, it very likely has several good years of use left in it, and anything newer isn’t likely to make a difference in home value or offers from potential buyers. If the current components are still operating optimally, there’s no use in shelling out money to fix what isn’t broken. Anything older than 15 years old, however, will be a turnoff to buyers. At this point, consider replacing the HVAC system completely.
Can you get away with an HVAC repair rather than a replacement?
If your HVAC unit is less than 10 years old but functions like it needs to be upgraded, you might be able to get away with some simple repairs rather than a complete system overhaul. To find out if you should repair or replace an HVAC system, multiply the age of your existing unit by the cost of the repair. If the total is more than $5,000, you’re better off replacing the system than repairing it.