At Huft Home Services, we have been helping our Sacramento neighbors improve their heating and air conditioning systems for years. Many of our customers spend a substantial amount of money each year remodeling their homes to see a considerable return on their investment.

Many are disappointed when they see how little impact the remodeling projects they do have on the value of their homes. Thankfully, HVAC upgrades are an intelligent investment. They make your home more comfortable to live in now and can increase your home’s asking cost in the future. Unfortunately, HVAC home improvements are often overlooked by Sacramento residents.

Investing in the wrong renovations could mean spending thousands of dollars on upgrades that never pay for themselves. However, there are several reasons why HVAC upgrades are a sure bet that will increase the value of your home now and help you sell your home faster.

What Is Home Equity?

When discussing the effect HVAC upgrades can have on your home equity, it is good to start by defining what home equity is first. When you get a loan to buy your home, the lender has a financial interest in your home until the loan is paid off. This is true even though, on paper, you are described as the homeowner.

Equity is not the for sale price of your property. It refers to the value you get from your home after clearing all debts. Let’s say that your home’s value is $250,000. You have a $50,000 mortgage to pay. This means that your home’s equity is $200,000. Any improvements you make to your home that boost its sales price or decrease the amount you owe on the house increases your equity.

Equity grows proportional to the selling price of your home. Home improvement projects, like HVAC upgrades, can increase the value of your home. The stronger and healthier the real estate market is, the easier it will be for you to build home equity.

Anything that improves the appearance and the condition of your home has the potential to increase equity. A bathroom or kitchen remodel, for example, could drive up home equity. However, not every investment drastically affects your property’s value. Still, you may have to pay for certain repairs to maintain your home.

How Do HVAC Upgrades Add Home Equity?

Your home’s HVAC system is essential to its functionality. An outdated air conditioner or furnace means that your home is not functioning at peak efficiency. You can make all of the cosmetic improvements that you would like. But if your home is not heating or cooling as it should, if heating and air conditioning utilities are overly expensive, or if a faulty HVAC system is affecting the air quality, this will lower the value of your home.

HVAC upgrades are not as flashy as a new kitchen or bathroom. Someone looking to buy your home may not immediately notice that you installed an HVAC system. However, they will instantly see if your HVAC system is broken or old. Because of the cost involved in replacing an HVAC system, a potential buyer might walk away from the sale. Most homebuyers won’t look twice at a home that does not have heating and cooling abilities.

Because of the cost involved, you might think twice about replacing your furnace or air conditioner or repairing your ductwork. But you may be surprised to know that HVAC remodels have a return on investment that can yield up to 71%.

Use HVAC Upgrades to Maximize Energy Efficiency

It is worth it for you to dedicate the energy and money to make your current HVAC system more efficient. Modern homebuyers are more concerned about sustainability and eco-friendliness than at any other time in the past. If your HVAC system is ten years old, it may be time to get a more energy-efficient unit. At Huft Home Services, we can help you evaluate the condition of your current HVAC system and help you determine if simple maintenance is enough or if it’s time to invest in a new unit.

If your system is efficient and modern, there are still more minor tweaks you can make to enhance the efficiency of your HVAC system for the future. This includes improving the weatherstripping in your home, installing smart thermostats, and upgrading doors and windows for energy-efficient models.

How Do You Know Which HVAC Upgrades Will Produce the Highest ROI?

Getting the best return for your HVAC upgrades stems from knowing which upgrades are suitable for your home and the type of people you are selling your house to. Factors to consider include the size and age of your home, the region where you live, your property’s layout, and your budget.

It is a good bet that buyers will inquire about the age of your HVAC system. It probably has several good years left if it was installed less than ten years ago. Anything over eight years old will not make a huge difference in home value or offers from potential buyers. However, if your furnace, air conditioning, or other HVAC appliances are older than 15 years, it will likely dissuade some buyers.

Repair Versus Replacement

Can you simply repair your HVAC system instead of doing a complete replacement? Again, it boils down to the age of your system. If your unit is over ten years old, its functions need to be upgraded to meet the expectations of modern buyers. A good rule of thumb when determining whether to repair or replace is to multiply the age of your existing unit by how much it costs to repair the unit. For example, if you have a repair that costs $500 and your unit is 11 years old, your total is $5,500. If the sum you arrive at is more than $5,000, it’s best to replace the system instead of repairing it.

HVAC Upgrade Options to Consider

Improving insulation is an easy fix and can yield up to a 116% return on investment. If your walls are properly insulated, this will enhance your home’s ability to control internal temperatures, reduce the demand on your HVAC system, and lower your energy bills.

Upgrading your ductwork, furnace, boiler, and air conditioner is vital for keeping your home comfortable. Most homeowners will not see central air conditioning or heating as an upgrade but as a standard feature. However, if these systems are not functioning correctly, you will struggle to get an offer close to your asking price, or you may not be able to sell your home.

Work With HVAC Heroes in Sacramento

Increasing the value of your home with simple HVAC fixes can increase your home equity. Some fixes will add more value than others, so do your research before starting a renovation project. Our experts at Huft Home Services would be happy to help if you have questions.

We have been providing heating and air conditioning services in Sacramento since 2004. We are members of ACCA, and we have a team of NATE-certified technicians. Whether you need HVAC repair, installation, maintenance or plumbing, insulation, or electrical work, we are the only team you need to call.

Our experienced electricians, plumbers, and HVAC professionals are the best in the business. We guarantee that our work is done in a highly meticulous manner. It makes us happy to care for your home’s comfort needs. Contact Huft Home Services today.

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