The trend in recent years has been that Americans are investing larger amounts of money on remodeling their homes every year and realizing considerably less of a return. For example, from 2017 to 2018, the money spent on home renovations nationwide rose 7.5 percent, totaling almost $340 billion. However, the average return on investment (ROI) for those projects was merely 56 percent. This represented a decrease of 12 percent in just one year. This information was generated from a survey commissioned by Remodeling Magazine.
When considering a home improvement project, it is important to maximize ROI and avoid costly renovation mistakes. You should know the upgrades that will add the most value to your home.
HVAC Upgrades Are Ideal for Adding More Value to Your Home
HVAC upgrades are a smart investment to improve your home equity. Despite this, HVAC upgrades are typically not initially considered by most people when preparing for home remodeling projects.
With a volatile economy and the uncertainty created by the COVID-19 pandemic, it is more important now than ever to make the right renovations to your residence.
Why Invest in Your Home’s HVAC System
While upgrades to your kitchen or bathroom could seem obvious at first glance, an updated HVAC system could make more financial sense. Although home buyers might not immediately notice a brand-new HVAC system, they are bound to take notice of an old or broken one. It could also ruin any chance of your home selling!
It is wise to seriously consider HVAC renovations and even make them a priority. Is it worth it? HVAC remodels have a higher average return on investment than most other types of remodeling projects, bringing about a return of up to 71 percent! This is according to a recent report by the National Association of Realtors (NAR).
Questions to Take into Consideration When Updating Your HVAC System
The relevant criteria for choosing the right HVAC remodel lies in knowing the best improvements for your specific home, according to the National Association of Home Builders (NAHB). Take into account the weather patterns where you live, as well as the age and size of the home. Also evaluate your set-aside budget and the layout of your property. Consider the following questions when preparing to undertake an HVAC upgrade:
Is Your Current HVAC System Still Working Well?
When evaluating your home, be assured that prospective buyers will ask you the age of your HVAC system. If installed less than a decade ago, your HVAC system likely has at least a few good years left in it. What’s more, a newer HVAC will probably not make a difference in the value of your home. There isn’t a logical reason for investing in an HVAC upgrade if the components are in good order. However, anything more than 15 years old will push homebuyers away. This is when you should consider replacing your HVAC system.
Can You Opt for an HVAC Repair Instead of a Replacement?
You can choose to do basic repairs to your HVAC system if it is within 10 years of age and forgo a system overhaul. Here is a helpful formula for determining whether you need to replace your HVAC: multiple the age of your existing unit by the cost of the repair. If the total exceeds $5,000, then you are smarter to replace the system rather than repairing it.
Is Your Home Located in a Climate that Requires Heating and/or Cooling?
When thinking about what type, if any, repair you should make to your HVAC system, consider your local climate, if you experience predominantly hot or cold weather. For instance, it would be unnecessary to upgrade your heating system if you lived in southern Arizona. In contrast, a heat pump upgrade would be worthwhile to move forward on if you reside in a desert climate like the Tri-Cities.
Opportunities for HVAC Upgrades
Upgrading your HVAC system is an easy decision if your home is more than 20 years old. There is a consensus among real estate agents that even though you might recoup only 50 percent or less of some HVAC improvements, an upgrade could capture the interest of prospective buyers and make it worth doing.
Central Air Conditioning
Because we want to be comfortable in all rooms in our homes throughout the year, a majority of home buyers these days expect central heating and air conditioning to be a standard feature as opposed to an upgrade. A central air conditioning installation could cost approximately $6,000 to $15,000, and increase your home value by as much as 10 percent. You have to determine if this investment will produce sufficient return on your investment.
Luxury HVAC Renovation Option
If your HVAC is already in good condition, it might be worth it to consider adding a luxury feature based on the luxury upgrades that are popular where you live.
“Having smart home features like smart thermostats are great features to tout in listing descriptions and may help attract a buyer’s eye, which can go a long way when it’s time to sell,” according to Jill Simmons, Director of Consumer Communications for Zillow. Simmons added, “Additionally, smart home features may signal to buyers that the home is updated and may have other desirable traits, upgrades, or features.”
Simmons suggested you choose smart upgrades that are in line with your neighborhood’s trends, the style of your home, and its value. The smart move is to think about luxury features that attract a wide range of buyers. If you want more information on this topic, consult with a local real estate agent about which HVAC features would best suit your property.
Look to Apollo Heating and Air Conditioning for HVAC Upgrades
Do you want to add more value to your home? Are you thinking about selling your house? Then look to Apollo Heating and Air Conditioning for the perfect upgrade for your HVAC system!
Our experienced team of highly trained technicians will work with you and exceed your expectations when performing installations or improvements to your HVAC system.
We invite you to contact Apollo Heating and Air Conditioning by calling (509) 396-COLD (2653).