Informational Guide

Does A Central AC Increase Home Value?

Let’s see if this appliance is an investment or liability.

by Dmitri Kara

Every homeowner with a house on the market aims to get the most out of it when it’s time to sell, and we know that sturdy Central AC systems affect real estate valuations.

The sale of your home is a serious venture that demands both effort and investments to you get the best price. So, what steps to undertake to increase the value of your home?

Obviously, some minor improvements are necessary. A small fix here, a splash of paint there, or just getting rid of a musty smell will enhance the look, feel, and value of a property.

However, what significantly affects your chance of selling your home sooner for the best price are key appliances and systems that boost the functionality and practicality of the house and ease everyday life.

That’s why a well-performing air conditioning system is an absolute necessity. It sustains a temperature-controlled environment, improves the air quality, and provides comfort, all appealing to potential buyers.

Upgrading the AC in the house or opting for a brand new up-to-date AC system helps a property get marketable and sell it quickly.

Read on for conditions and performance of AC systems that affect home value. This guide also explains how to manage successfully the entire process of getting a new AC.

Central Air Conditioner Condenser Unit Mounted on a Wall

Not sure if there’s really a need to install new air conditioning?

Go through the following to make your decision:

  • How old is your AC system and do you need to recycle it? If the AC in your house is over 10 years old, it’s best to replace it. The latest AC systems are electricity efficient and help save money on heating and cooling. That’s definitely an asset for prospective homebuyers.
  • Does the AC perform at its best and in line with your demands and desires? An old AC system is likely to break down sooner, and no buyer wants to pay high repair costs after just investing in a new home. It’s also a deal-breaker if the system runs without a central dehumidifier or ventilator. So, it’s no surprise that an old AC system affects the marketability of a property.
Central AC Condenser Mounted Above a No Parking Sign

Reasons To Replace Your AC Before Selling Your House

So, how does a new AC mitigates a house sale?

  • It shows purchasers you are responsible. The fact that you put time and effort into improving your home instills trust and confidence in buyers to get involved with your property. Replacing the old AC with a brand-new one before selling shows you take care of issues in advance, and buyers are positive that they step into a reliable house with running appliances and other home systems.
  • It transforms the house into a modern property. A new AC system and other units make your home efficient and functional, which is quite valuable.
  • It helps reduce electric bills. New air conditioners are up-to-day tech and energy-efficient – definitely a bonus to homebuyers. Not only do they help you save money, but they preserve energy as well.
  • It makes your property stand out amongst other houses in your area, also for sale. Buyers always notice an outdated or broken AC system. And when in awful shape, the AC totally knocks off chances of positively affecting the value of a house. So, with upgraded air conditioning, you get an advantage compared to nearby houses.
Several AC Condenser Attached to a Wall

Is a New Air Conditioning System Really Worth It?

A new AC system helps get prospective buyers interested and enthusiastic about a property up for sale. The feature doesn’t get all your money back, but it adds to the salability and to the value of real estate.

Consider this situation: a homebuyer is trying to decide between two properties with similar characteristics. However, the one had a 15-year-old AC system, whereas the other owns a more recent AC system with various uses. Which house do you think they are going to pick?

Buyers want to feel comfortable in their new home and are willing to pay more to ensure that.

“So, to answer your question. Yes, it’s worth it,” comments Paul Gibbens, UK investor, and real estate vendee. “A new AC system helps sell a house quickly, at good ROI, price, and up to 50% return on your initial investment on the system upgrade,” the expert adds.

Read:

Man in Suit Holding a Small House Model

How to Choose the Right AC System

After you decide to invest in a new AC system, comes the next challenge – how to choose the most suitable one for your place that offers the most value. Experts at Veejay’s point out the factors to go through:

  • Brand name. Future buyers will be more comfortable with a brand that is popular. So, choose a brand that is known to specialize in AC house units and systems.
  • Energy efficiency. A huge pro for prospective buyers. Who doesn’t love saving money on utility bills? Go for the most efficient heating and cooling system you can afford.
  • Eco-friendly. Energy preservation goes hand in hand with going green. More and more people take care of the environment however they can. So going green with the new AC is definitely an excellent investment. And if the property has solar or geothermal capabilities, its value will skyrocket.
  • Correct size. The AC system replacement needs to be the right size, so it properly heats and cools the house based on its design and square footage. If the unit is too small or too large, it’s inefficient and causes long-term issues.

Now, let’s have a look at what types of AC systems exist.

  • Split system. If your house is constructed with a furnace and ducts, an economical yet profitable solution is to add split system air conditioning. It comprises a condensing unit installed outside of the house and an evaporator together with a fan atop the furnace.
  • Heat pump. This is an all-in-one heating and AC system ideal for climates with moderate winters. How it works: the system conveys heat through ducts from the inside of the house to outdoors during summer and vice versa when it’s winter.
  • Ductless mini-split system. Your home doesn’t have ductwork? Or it’s not suitable to install ducts because of plaster walls, original woodwork, or for any other reason. Then, a ductless mini-split system of low amp use is a perfect option. It uses an outdoor compressor and an indoor air handler connected via tubes to cool the air. You can put several systems around the house to set different temperature zones. Most homes have four to eight mini-split AC systems.
  • AC packaged system. For a house without a furnace or with one that needs replacement, the packaged unit incorporates all necessary components in one.
  • High-velocity AC system. Similar to packaged systems, a high-velocity AC system flows air through duct pipes that are about 2 inches in diameter, which makes it a great option for small spaces o older and historic houses. High-velocity systems run faster but they are noisier.

Replace The Entire Unit Or Just Certain Parts?

Can you go with replacing only some AC parts, or must it be the entire unit?

To find out, check the following:

  • Age of the AC system. For systems over 20 years old, it’s best to replace the whole thing. Replacement expenses are higher than repair costs but guarantee a home resale.
  • Location of your property. If your home is in an area with a mild climate, and you seldom use the AC, then you can get away with changing just individual parts.
  • The $5 000 rule. One way to figure out if you don’t need to buy a new system is to multiply the age of your AC by potential repair costs. If the sum is more than $5 000, better replace the system with a new one.

“We help people relocate homes, and we’ve visited properties in the 100’s, talked to both landlords and tenants throughout the price and quality specter of real estate, and what we can confirm first-hand is that all technological home improvement raises both rent or land value,” comments removalists What Removals.

How Much Does It Cost?

The expenses of installing a brand-new AC system depend on the age and the size of the house. The average cost is approximately $7000, according to different renovation price guides.

But mind that pricing varies based on home size, the energy efficiency (EER) of the AC system, the climate in your area, and other factors.

Proper Installation

The replacement of the AC system aims to improve your home, but only if you install it the proper way.

For this purpose, it’s best to hire a professional technician to set it. That’s how to protect the new system and make sure that it performs as it should. Note also that warranties are only valid for professional installation.

Regular Maintenance Sells

If your current AC system isn’t too old and runs well, replacement is probably not the right option for you.

Take your time and research qualified experts to evaluate and determine if any repairs are necessary for your existing system and to fix any damages, comment professionals at Fantastic Handyman. If they perform any work, keep all the receipts.

Proof of regular maintenance is as important as a new unit to the value of the property and helps persuade a potential buyer to choose your property.

AC’s & Property Value, The Bottom Line

So, if you wonder whether a new AC system increases the value of your home for sale, yes, it does. But how much value it adds depends on a range of factors such as climate, how often the system is used, is it older or brand-new, and so on.

Use our guide to make the best decision on the AC system for your individual case.

Last Updated on May 26, 2022

Dmitri Kara

Started writing as a jack of all trades in 2012 and is currently a recognized expert in a wide range of domestic and commercial trade topics. Dmitri has appeared for quite a few reputable outlets such as Today.com, Telegraph.co.uk, ReadersDigest.com, Reviews.com, IkeaHackers.net, and many more.

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