Will HVAC Upgrades Increase the Value of my Home?

Even if you’re not currently planning on selling, it is always good to consider what might increase the value of your house. But it is important to carefully consider any upgrades, as not all projects will pay off.

HVAC Upgrades Compared to Other Home Improvements

HVAC upgrades provide a much greater ROI compared to other home improvements:

• Installing a new stove or remodeling your bathroom aren’t necessarily bad ideas and should help to boost the value of your home.
• The only issue with these upgrades is that the value they add usually won’t cover the cost of the project.
• Research has shown bathroom or kitchen remodels will typically increase a home’s value by somewhere around 60% of the cost of the project.
• On the other hand, upgrading to a new furnace or AC will usually increase your home’s value by at least the cost of the new unit.
• Heating and cooling are generally the biggest energy costs, and prospective buyers will usually be willing to spend more if they know the HVAC system won’t result in high cooling and heating costs.

This is especially true if your HVAC units are more than 10 years old, or if you upgrade to a much more energy-efficient unit.  The fact that the new unit will be under warranty will also make your home appealing. Potential home buyers will also be drawn to the fact that their energy costs will be lower, and the home will be more energy efficient. All this being said, there are times when it doesn’t really make sense to upgrade your HVAC system. For instance, if your units are only a few years old and still under warranty, then you’re not likely to see much benefit.  Even if you opt to upgrade to a unit with a much higher energy-efficiency rating, the total increase in equity is still likely to be minimal.

Here are some other upgrades to consider: Smart Thermostats

Smart thermostats allow you to control energy consumption remotely via a smartphone app. Home appraisers have begun including smart devices when appraising homes for sale. Installing a smart thermostat can increase a home’s value by up to 5% on average.

Zoning Systems

A zoning system allows you to regulate the temperatures in specific areas in your home. This is an excellent way to minimize the hot and cold spots and concentrate your energy usage on the areas you use the most. Zoning systems reduce energy consumption since you don’t condition the air in unused rooms.

Residential Variant Refrigerant Flow (VRF) zoning systems increase system efficiency and the value of your home.

Energy Recovery Ventilators (ERV)

ERVs exchange air from the inside with fresh outside air. The process goes on without energy loss, compared to other methods like opening windows and doors to ventilate your home.

When you open windows, you lose the heat that is already indoors, and you will end up using extra energy to reheat the room. ERV systems help increase the efficiency of your HVAC system and the value of your home.

Beyond HVAC According to HGTV, the following are the best upgrades to invest in when you plan to sell:

1. 1.  Minor bathroom remodel
   2.  Landscaping
   3. Minor kitchen remodel
   4. Exterior improvements
   5. Attic bedroom conversion
   6. Major bathroom remodel
   7. Major kitchen remodel
   8. Deck, patio or porch addition
   9. Basement remodel
   10. Replacement windows
   11. Family room addition
   12. Bonus room update
   13. Living room décor update
   14. Bedroom update
   15. Living room walls and floors update

Cincinnati heating and cooling contractor Jansen Heating & Cooling can help you determine whether a new system will be advantageous.