In part one of this article, we discussed how spending more money on visually appealing remodeling jobs around your home in hopes of increasing its equity may not always be the best move. We then went on to look at how updating the vital parts of your home, like your HVAC units, is a much better strategy for boosting home equity while still securing the interests of potential buyers. In part two, we’re now going to shift our attention to some different HVAC upgrades that can close the deal on turning that sign in your front yard from “For Sale” to “Sold.”
Install a New Central HVAC Unit to Add to Your Home Equity
People want to be comfortable in every room of their home all year long. And most homebuyers today consider central heating and air conditioning a standard feature rather than an upgrade. You may struggle to get an offer close to what you’ve asked for—or to sell your home at all if you don’t have an updated HVAC unit.
Central air upgrades can cost anywhere from $6,000 to 15,000 if you add new ductwork, but it could also increase your home value by up to 10% according to Money. A lot of this decision-making process also can depend on the current state of your HVAC. For instance, if your HVAC unit is still relatively new or still runs efficiently then it may not be worth the cost.
If you’re still deciding whether the cost of this investment will bring enough of a return to be worth the hassle, we suggest doing some simple math to compare the cost of repairs to the cost of installation and the factor of your unit’s age. And refer to part one of this article if you have any questions about when it is time to replace your HVAC unit.
Add New Air Ducts with your Replaced HVAC Unit for Better Air Quality in your Home
If you are planning to replace your house’s old HVAC system to upgrade your return on investment (ROI), you also need to upgrade your ductwork, so it runs better with your new system and increases your home’s value. New air ducts will improve your home’s air quality so that it meets the level of sanitation recommended by the US Environmental Protection Agency.
Ductwork will last for 25 years at most, but it starts to degrade about 15 years from when it was first installed. This deterioration can break down your new HVAC system by slowing its ability to run at its full ability, so it’s a good idea to also go ahead and replace the ductwork if you plan to sell your home.
Increase your Home’s Value with New Insulation
Properly insulated walls help to regulate your home’s internal temperatures and keep your HVAC system from overworking. Thankfully, fiberglass insulation renovations are a relatively cost-effective, easy fix that yields a 95% to 116% return on investment for home owners.
Your new homeowners will be especially thankful that they won’t have to do this renovation since you’ll be making sure your house is move-in ready for them by checking off this project on their list. Most people are also willing to pay a little extra to have renovations like these done for them, which makes this upgrade a great selling point to use when showing off your home.
Replace your Old Furnace or Boiler to Gain a Higher Return on Investment
Most furnaces can last up to 15 years when taken care of correctly. However, the older a heating appliance gets, the more you’ll be spending on frequent, expensive repairs to maintain it. Replacing an old furnace or boiler doesn’t require much labor and you’ll conserve energy while also improving the efficiency of your home’s heating system, which looks great to potential buyers.
Be sure to first check and make sure that it’s time to replace your furnace or boiler in the first place. To find out the age of your furnace, look for a tag with a serial number. The first four digits of this number will tell you the week and year it was manufactured. However, furnaces and boilers made after 2000 will have their dates in the last three to six digits of the serial number. An HVAC mechanic can help you determine the date of your furnace or boiler if you are still unsure.
Bump Up your Home’s Value by Upgrading to Energy Efficient Windows
In addition to reducing drafts and boosting heating efficiency, upgrading your home’s windows reassure your potential buyers that they’ll reap long-term savings on their utility bills when they move into your home.
The benefits of making this HVAC upgrade are in the numbers. Approximately 35% of a home’s heat escapes through low-quality windows. By spending $15,000 to upgrade to double or triple-pane vinyl-insulated windows, you can recover about 74% of your energy costs and increase your home value by about $11,000, according to Remodeling Magazine.
A survey by the National Association of Home Builders also revealed that 83% of homebuyers from all economic backgrounds ranked energy-efficient windows among their most-wanted home features. Statistics like this make this upgrade an easy decision if you’re looking to attract buyers for your home while also boosting its value.
Re-Insulate your Roof to Increase Home Value
The roof of your home is an important insulator that often gets overlooked when you’re looking to increase home equity with HVAC upgrades. Inefficient roofing materials account for 25% of heat loss in your home. Upgrading to modern, high-tech shingles means you can relieve your HVAC system from excessive strain and improve your indoor comfort.
Asphalt shingles can also lower a roof’s surface temperature by up to 50 degrees and increase home value by $12,000. Investing in a new roof can be expensive, but the National Association of Realtors has shown that you can recover 105% of the cost at resale, making it a well-worth investment into upgrading your HVAC system and your home’s value.
Upgrading Doors and Weather Stripping can Grow Your Home’s Equity
Another way to significantly improve your home equity with HVAC renovations is to upgrade to energy-efficient doors and repair or replace any old weather stripping. Look for ones made of fiberglass, steel, and vinyl; these are the most energy-efficient materials for doors. Wood and glass may be more visually appealing, but if your goal is to prevent airflow then these materials will not work. Also, look for the label of the National Fenestration Rating Council when choosing a new door. This indicates how good of an insulator that the door of your choice will be.
After replacing your door, you should see a return of at least 70% of your investment upon resale, depending on the type of door you’ve chosen. You can also increase your curb appeal and attract more prospects with a new door when you give your house a quick facelift.
Don’t forget about the weather stripping when swapping out your door, too. This will give a tight seal around your doors and windows to prevent air leaks. This is one of the less expensive home upgrades you can make, ranging from $130 to $340, and it can save you a lot on your heating bill, too.
Add Smart Home Features to Boost Equity Like Variable Refrigerant Flow (VRF)
If your HVAC system is already in good shape, then you may want to consider adding some smart home features. These can signal to buyers that your home is updated and may have other desirable traits or upgrades worth checking out.
Residential variant refrigerant flow (VRF) systems, for example, are becoming more common in luxury homes. Many eco-conscious buyers love VRF systems because they know no matter where they spend time in their home, they aren’t cooling or heating space they aren’t using. They run quietly and at high efficiency which makes them a great installment for any room. These systems are perfect for newly constructed homes or replacing old cooling systems.
Expand Your Home’s Value by Installing a Smart Thermostat
A 2019 NAHB survey showed that smart thermostats are among the top three most desirable home technologies for potential homebuyers. Their biggest appeal for buyers is the convenience and user-friendliness of this device. A smart thermostat allows homeowners to control their level of energy consumption by regulating temperatures within their homes from their smart devices.
With features like being able to turn off and on your thermostat while when you’re away from home and changing the temperature of any room, then it’s clear to see why this smart home feature is so desirable for modern homebuyers. In fact, Consumer Reports reveal that smart thermostats and other similar smart home features can bump your home’s resale value by up to 5%. For example, that would be a $20,000 value added to a $400,000 home simply because consumers are willing to pay more for a house with modern amenities.
The cost of a smart thermostat can range from $150 to $400+, not including installation, but you can find affordable options below $150 on Amazon.
Improve Home Equity with a New Whole-Home Dehumidifier
Anyone in the southeast knows that a humid climate can be difficult to live in, but this can be used to your advantage as a house seller if your residence has the right smart features.
Dehumidifiers are a smart device that helps with controlling humidity in homes. When integrated with a central HVAC system, you can produce consistent air quality across all areas of a house so there’s never a difference in comfort as you move around inside.
Whole-home dehumidifiers can cost between $1,300 and $2,800, but the cost might be a great selling point for prospective buyers if you live in Florida, Georgia, Hawaii, or another humid place. Like how new insulation makes your home move-in ready for buyers, a dehumidifier in the Southeast can signal the same thing for any potential owners.
Consult City Heat and Air Today to Learn More Tips for Boosting Your Home’s Value
As a homeowner, increasing your return on investment doesn’t have to be as daunting as it seems if you know what parts of your home need the most upgrading. That’s where our specialists at City Heat and Air come in handy. Our knowledgeable staff has been serving Knoxville neighborhoods for over 50 years now, and we are more than ready to offer you our consultation and skills when it comes time to get your home move-in ready for its new owners, or helping current owners get more value for their home when they get ready to sell it. Whether it’s boosting energy efficiency by adding a new smart device or just making a few repairs on an HVAC unit, our crew can do it all and at an affordable price. Visit our website today to start your consultation process.