There are dozens of factors that impact your home’s value. From outside elements such as geographical location, landscaping, and siding, to indoor features such as flooring and appliances—all of these contribute to the overall value of your home.
With so many different components, how can you know if your HVAC system is really impacting your home’s value? We’ve compiled a list of several factors for you to consider as you determine the value your HVAC system adds (or doesn’t add) to your home.
Is a new HVAC system a necessity or a luxury?
While potential buyers may not immediately notice a newly furnished HVAC, they will definitely notice an underperforming one! In today’s market, having effective central heating and cooling is considered a necessity instead of a luxury. The ability to successfully control house temperature may just be the selling point that closes the deal.
That being said, if your current HVAC system is working properly and has acceptable SEER and AFUE ratings, then you’re not going to add noticeable value to the home by replacing it with a brand new system. Typically as long as potential buyers see that your air conditioning unit is under 10 years old and your furnace is under 15, then you’re good to go (obviously the newer the unit the better, but there’s no need to replace until your system has passed these benchmarks).
In the past 15 years, HVAC systems have drastically improved in efficiency. Even if you’re not looking to sell, you could save 20-40% of your energy bill by simply upgrading to a model made in the last 10 years. Considering that heating costs constitute one third of annual utility bills (Energy Star), this one change makes a big difference! By increasing the energy efficiency of your model, you increase your future savings.
Energy efficiency doesn’t just save money in the long run, it also makes money during a sale! Recent research suggests that:
- An energy-efficient HVAC system can increase home value by 10 percent (The House Shop).
- The higher your HVAC scores on SEER/AFUE ratings, the higher value it holds for your potential buyers.
Plus, you may be eligible for tax breaks or rebates available for energy-efficient updates in Ohio.
So what exactly constitutes an energy-efficient system? Ratings have been put in place to help determine exactly how efficient a unit is. For air conditioning units, it’s SEER rating, and a rating of at least 16 is considered efficient. For furnaces, it’s AFUE, and a rating of at least 90% is considered efficient.
System Size in Comparison to House Size
When considering HVAC systems, it’s important to remember that one size does not fit all. A unit that is too small for your home will not cool each room properly. Nobody wants one room to be hot, and the next cold!
However, a unit that is too big will cool the house without properly dehumidifying your air. The system will overwork itself in keeping your home the right temperature, and the consistent starting and stopping will wear out the unit faster.
The Jennings Heating and Cooling team can help you figure out what the right size system is for your home.
Let Us Help You Increase Your Home’s Value
By installing an energy-efficient and updated HVAC system, you can not only reduce your current utility bills but also raise the appeal of your home to future buyers. Contact Jennings Heating and Cooling today to schedule an appointment and see if your system is due for an upgrade!