American homeowners know that residential remodeling projects can raise the equity of their homes. However, it’s important to understand the potential “ROI” of a renovation before going through with it. That’s the return on investment and it’s a critical part of remodeling with the purpose of raising a home’s value.
The investments with the highest return can be tricky to determine, vary substantially based on the details of the renovation, and can even change year to year. Some investments may never pay for themselves, like expensive kitchen or bathroom upgrades. However, other investments seem to stand the test of time—like HVAC upgrades.
In today’s post, we’ll explore why HVAC upgrades are a smart bet to raise the value of your home, will be more likely to pay for themselves, and help you sell your home in a shorter amount of time.
Let’s get started with the biggest reason why:
The Biggest Reason Why HVAC Improvements Are a Critical Investment for Sellers
Imagine that you’re shopping for a new home in Colorado. The one you’re visiting has lovely new cabinets, marble counter tops, and a snazzy new coat of paint.
…But it’s cold, even though the heater is running. What would you do?
Prospective buyers aren’t likely to even consider a home that doesn’t have modern heating and cooling available. While this example might sound a bit extreme, it does paint a picture: buyers (and anyone advising them, such as a home auditor) will definitely notice an old HVAC system, or one that’s clearly in disrepair.
If your HVAC system isn’t in top shape, repairing, upgrading, or replacing it should be a top priority. The National Association of Realtors even reports as of 2019 that HVAC remodels have a higher average ROI than other equity-building projects, second only to refinished hardwood flooring.
So, the “biggest reason” that HVAC upgrades are important really comes in two parts: buyers aren’t interested in old or malfunctioning systems, and when the house does sell, you’re more likely to recoup more of your costs if you prioritize the HVAC system (even over seemingly popular and effective projects, like a bathroom renovation).
To Replace or Repair: Which Will Yield the Most Value?
Whether you need to simply repair or entirely replace your HVAC system is really dependent on the condition of the system itself. If it works well and is less than 10 years old, it generally shouldn’t need to be replaced—have us come out to do an HVAC inspection and we’ll be able to tell you your best course of action.
If you suspect you might have to replace your HVAC system, always, always have an inspection first—sometimes replacing the system isn’t necessary. Repairs are generally cheaper, and can result in many more years of service from your system. However, in some cases the repair cost will outweigh the cost of a newer, upgraded system. In that case, you want reliable advice from professionals you can count on.
Why Keeping Your HVAC System in Good Working Order is Important, Even if You’re Not Selling Your House or Looking to Build Equity
Raising the equity of your home isn’t the only reason to maintain your HVAC system. In Colorado especially, where we have warm summers and cold winters, you’ll increase your comfort at home and save money. Not just a little bit, either—check out our post The Real Benefit of HVAC Maintenance is in the Numbers: How to Save Thousands to get an idea of the kind of savings you can enjoy.
In many cases, home DIY maintenance is quite possible. For example, changing your air filters regularly is a simple yet very effective way to increase energy efficiency. Doing a quick inspection of your ducts to check for leaks can prevent waste and promote better air balance. Inspecting your vents and checking for obstructions and ensuring fans are clean and spinning properly can also help.
Read our post HVAC Tips & Energy Saving Tricks for New Homeowners in Colorado for more tips, some of which are especially helpful if you’re new to the Northern Colorado area.
For everything else, we’re here to help.
Learn More About HVAC Maintenance, Annual Inspections, and HVAC Energy Savings in Colorado
If you’d like to learn more about maintaining your HVAC system, which upgrades or repairs would be the best to build home equity, or how to improve the energy efficiency in your home, please feel free to contact us today. If you’d like us to come out to look at your HVAC system, you can request a service call online or give us a ring at (970) 218-0414.