Thread: HVAC Upgrade and Home Value

In my experience, very few buyers ask about the efficiency of a HVAC unit. They only want to know a few things. 1) Does it work? 2) How many zones are there? 3) When was the system last serviced and is there a local technician. And that's all. (Now why don't you take a long close look at that sign. Those proportions are correct. Larry: "Love to prove that wouldn't you? Get your name into the National Geographic. Brody: "Larry, we have to close the beaches". Love that friggin movie.

Yes, they'll tour the attic for the air-handler and they'll look at the condenser too. If they look old and outdated, you may have a problem. It's all esthetics (yes, spelled correctly so F.O.), with buyers. If your system only has one or two zones, that too may be a problem. People want control over their air handling (among other things). They don't want to look at an old system with outdated thermostats not even manufactured anymore on the walls. Some buyers will ask you to turn the thing on and they'll time how long it takes for the conditioned air to come out of the register. Don't be surprised if you get looks from doubty housewives and a lot of rolling eyes as the minutes tick by......if the system is on its last legs. Don't be surprised.

CM

So, no sure $ for a new install? I admit our system doesn't look nice, but it works just fine.

Our old system has never given us any problems and keeps us comfortable. Because we are planning to move in the next couple years, I am weighing taking advantage of the home improvement tax credit ($1,500) with the thought of donating a new system to the next owner. I believe that the current system would/could last a few more years but if a newer system would bring increased return at the sale, I would feel more comfortable going through with it.

The basics are: a new 3.5 ton Trane system (everything but new duct and plenum) on a 2,000 SF single story is $7,056. Tax credit would come back early 2011, making the total $5,556. The savings between a new and old system is estimated at $400-$500 annually, saving me up to $1,000 over two years. That is $4,556 out of pocket by the time a move comes around.

Other thoughts?

That's actually a great idea. Tell the prospects that you'll credit them the Energy Credit at closing. That way, if anything were to go wrong with your current HVAC system, the buyers will have the Energy whatever and other funds to either replace or repair the system. Good idea. If that's what you want to do, have that verbiage in your listing! That's an incentive, much like a Home Warranty (not the builder's warranty; a Home Warranty).CM

Originally Posted by Josephus

Hello,
Are buyers willing to pay more for homes with newer HVAC's? Is there a premium for homes with super-high efficiency systems vs homes without?

No, buyers will not pay a premium. However, with an older system, knowledgeable buyers might offer you less because they will know they will have to/or want to replace the HVAC system in short order. And, by not replacing the system you are giving your future competition the possible advantage if they have new systems.

Talk to your accountant before you install this system for the tax credit. If you earn over a certain amount you do not qualify for the tax credit.