If the heating and cooling system in your home is older than 10 years, you have high energy bills, and/or repair costs are mounting, replacing your HVAC when selling could make financial sense. Even though it’s a big ticket item, the quality and condition of this system influences home buying decisions.
Pros
- It gives you a competitive advantage. The age, efficiency and condition of HVAC systems looms large in buyers’ minds, and newer is always better. While a new system may not translate to a higher asking price, it may attract more interest, which could speed the sale.
- The system will pass the home inspection. The lending company will insist on a home inspection to verify that the home is a sound investment. Buyers will have less room to negotiate a lower selling price or insist on repairs, since the system is new.
- Your home will be more energy efficient. Home buyers prioritize energy efficient homes because they cost less to heat and cool, which either leaves more money in their pockets or allows them to qualify for more home.
If your home has thermal-rated windows, is well insulated and airtight, replacing your HVAC when selling may qualify it for an energy efficient mortgage (EEM). These types of loans help buyers qualify for larger mortgages. The EEM takes into account lower utility costs, so the buyer can afford a slightly higher monthly payment.
- The warranty can be transferred. Most warranties last for 10 years on parts and several years on labor. Having this protection is something that buyers value.
- The system will be dependable. Unexpected breakdowns are rare with new equipment.
Cons
You won’t recoup the investment entirely. Few home improvements equate to a 100 percent return when selling homes, but a faster sale is often financially beneficial.
When deciding about replacing your HVAC when selling your home, don’t underestimate the value of comfort. All other things being equal, a new system could help you sell faster and more easily. To learn more about your HVAC system’s condition and whether you should replace, contact Jackson & Sons, providing HVAC services for eastern North Carolina homeowners and businesses.
Jackson & Sons, Inc.
Our goal is to help educate our customers in Eastern North Carolina (including Wayne, Johnston, Greene, Lenoir, Pitt and Duplin Counties) about energy and home comfort issues (specific to HVAC systems).
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