HVAC and home value... should I repair or replace?

We have a 22-year-old HVAC system that is on its last legs, and we’re planning to sell the house in about 8-10 months. We’ve been quoted $1k to fix the current unit, or $12k to replace the entire system. The dilemma is whether replacing it now would add enough value to make it worthwhile for the sale, or if it makes more sense to just do the repair and let the buyer handle the replacement later. Any thoughts on whether a new HVAC would boost the value enough to justify the expense?

As an agent, I’ve seen many homeowners thinking that replacing major systems will boost their home’s value by a significant amount, but the reality is that it usually just affects marketability. A 22-year-old HVAC will likely reduce your buyer pool since some buyers won’t want to deal with a replacement shortly after moving in. Fixing it for now will keep it working, but buyers will likely negotiate for a replacement later or ask for credits. It’s not about getting more money for the house—it’s about making the house easier to sell.

I think replacing it might be worth it for a couple of reasons. First, you get to use the new system while you’re still living in the house, which is a bonus. Second, buyers will be more attracted to a home with a brand-new system. While they may not add $12k to their offer, your house will definitely stand out compared to similar homes with old systems. If you just fix it for $1k, there’s always the risk it will need more repairs before the sale, or even a full replacement. That’s something to think about.

@Lee
That’s a good point. I hadn’t really considered the value of getting to use the new system while we’re still here. And you’re right—spending $1k now might just be delaying the inevitable if it breaks down again. I’ll definitely think about that.

As another agent here, I can tell you that a home inspection will definitely flag the age of the HVAC, and buyers will likely either pass on the house or request a repair addendum. Replacing the system now eliminates that potential issue, and while you won’t get a dollar-for-dollar return, you’ll avoid having to negotiate over it later. An old HVAC system is one of those things that can be a dealbreaker for buyers, so if you can, I’d suggest replacing it to make the sale smoother.

As an HVAC tech with 10 years of experience, I can tell you that if your system is 22 years old, it’s most likely using R-22 refrigerant, which has been phased out. This makes repairs more expensive, as R-22 refrigerant costs around $500-$700 per pound compared to newer R-410A refrigerant, which is about $90 per pound. Depending on your unit, it could take over 8-12 pounds of refrigerant, which adds up quickly. Some inspectors won’t even pass a system using R-22 anymore due to EPA regulations. Honestly, I’d recommend replacing the system now, especially if it’s still using R-22.

@Floyd
That’s really helpful info, thank you. I wasn’t aware of the refrigerant issue. It sounds like it could become a bigger problem down the road if we just repair it for now. I’ll definitely keep that in mind when we’re deciding.

If you’re really torn between the two, another option is to fix it for now and then market the house with a home warranty. That way, if the HVAC does go out soon after the sale, the buyer will have coverage for the replacement. Also, $12k sounds pretty high—make sure to get multiple quotes before moving forward with a full replacement.

@Baylen
That’s a good idea, offering a home warranty could help ease buyers’ concerns if we go the repair route. And yeah, I’ll definitely get a few more quotes to see if the replacement price can come down.

I’d say just go for the $1k repair. Buyers expect a working HVAC system, but replacing it won’t add enough value to justify the $12k expense. Disclose the age of the system, explain the recent repairs, and let the buyer decide if they want to replace it after purchase.