I’m considering an HVAC renovation that would cost about $10k in my area. I know having a new HVAC system is an important selling point, but I’m really wondering if I can expect to see at least $10k back when I sell. Just to add some context, my house is in perfectly sellable and livable condition even without a brand new HVAC. The heating and cooling currently work, not as well as a new system, but it’s functioning fine.
From my experience, you never get dollar for dollar return on something like this. It’s considered more maintenance than an upgrade. Buyers will expect it when they walk into your home.
$0. In 2025, if your HVAC doesn’t work, you’ll eliminate 90+% of the buyer pool.
Where do you live? What’s the expectation for your geographical location? What do you mean by ‘renovation’? Are you repairing things that don’t work or are you installing AC for the first time? When are you planning to sell?
@Jory
House is located in AZ. It’s not a feature in every competing property, but it’s nice to have. Currently, I’m on a swamp cooler, and heat runs through electric ceiling baseboards. It works, just not as great as a brand new HVAC. I’m not planning to sell until summer at the earliest and I plan to price competitively.
I’m an AZ realtor. It really depends on the location and price point of your home, assuming you’re in the PHX metro. You won’t get 100% of your money back from the install, but it might be the difference in your home selling versus your neighbors. I’d love to chat more about your specifics if you want recommendations.
@Wei
Thank you, I sent you a message!
You won’t get it back. It may increase buyer interest—like ‘Oh look at this nice house, it even has a new HVAC’—but you won’t get your money back like you might with a new kitchen or bathroom.
$0. Assuming you’ve made the place inhabitable and sellable, that’s good.
Some buyers won’t consider houses in certain markets unless they have AC. When I was looking for houses in AZ, I refused to even consider homes without AC. Installing new ducts can be a hassle unless you’re doing a full renovation. If you’re in a desert climate, you might find it hard to sell if you don’t have AC. Plus, $10k for an HVAC install? You must have ductwork in place, as just the furnace and AC will cost around $7k in parts alone.
No, the expectation is to have a functioning AC. If it’s not functioning or is old, adding a new one doesn’t raise the price by $10k.
If I were buying an older house at current prices, I would expect the HVAC to be renovated.
As an AZ resident, if your house has only a swamp cooler and no AC, installing a new AC will definitely increase your price. Most people expect AC and won’t be happy with swamp cooler performance, especially newcomers. I automatically add a $10k renovation cost in my mind for properties that only have swamp coolers when making an offer. Consider a mini-split as a cheaper option since it heats and cools from the same unit.
@Drew
Thank you! That’s a smart idea.
It’s a good selling point, but can you raise the price by $10k? No. Younger buyers tend to want more cosmetic upgrades like stainless steel appliances, modern updates, new flooring, cabinets, and so on. Many younger buyers will overlook a new HVAC system for those upgrades.
@Ray
I think you’re right. Honestly, I think I have that to my advantage in this case, oddly enough.
Don’t forget that the HVAC system can qualify for tax rebates. You might get tax credit deductions if you do it before 2032.
Bay said:
Don’t forget that the HVAC system can qualify for tax rebates. You might get tax credit deductions if you do it before 2032.
Oh, I didn’t know that! That’s helpful info.
No, it’s not going to be worth what it costs. But could it cost you more than $10k in sales price if you don’t do it? Yes. If your HVAC is beyond its ‘useful life,’ it could.
You get from zero to 50% on a renovation. Do it for your own comfort and use.