Add to Your Home Equity With HVAC Upgrades
November 15, 2022
The flames on the housing market are finally starting to smolder. While home prices skyrocketed last year, prices and purchases are starting to level out. So, if you plan to sell your home soon, you may not get as much for it as you’d hoped. However, you can add to your home equity with HVAC upgrades that will have buyers bidding higher.
Homebuyers are looking for homes with increased efficiency and systems with a reduced carbon footprint. Providing value-added upgrades will increase your home’s appeal as well as its selling price.
Why Upgrade for Value?
A 2016 white paper from Freddie Mac reports that energy efficient homes sell for 2.7% more than similar unrated homes. It doesn’t sound like much, but consider that since that time, energy costs have skyrocketed and families have become more home-centered since the pandemic.
A 2022 list of homebuyer desires places energy efficiency at number 4 and wireless connectivity at number 5 on their list of wants. HVAC upgrades that combine smart features and lower energy bills ticks off two boxes at once.
Choosing Upgrades That Add Value
Not all upgrades offer equal value. Consider two factors when planning home improvements. First, identify which upgrades add value. Secondly, determine which upgrades add appeal. The first can increase the sales price, the second can ensure a speedier sale.
When determining which upgrades will pay off, decide when you’re going to sell your home. If you’re planning to sell right away, adding appeal as well as value is important.
Upgrades that add appeal may become short-lived trends. Manufacturers are constantly improving technology, so the Wi-Fi smart gadget that’s all the rage this year may become obsolete next year.
Upgrades that add value may be less showy but will be a better long-term investment if you change your mind about selling.
Best Upgrades to Add Equity
Look to the basics when it comes to adding equity to your home. For example, if your system is old, your best bet is to replace it with a new, more efficient system.
If your home has no central heat and air at all, you may need to have it installed to get a buyer. Loan providers may not finance homes without central heat and air.
Improving Your Existing System
If your home’s HVAC is less than 10 years old, your best investment is spent on features that make it more energy efficient.
Zoning
Zoned systems are more efficient as they respond to owner programming to reduce usage in unoccupied rooms. They also offer better control of air quality for vulnerable members of the family.
Insulation upgrades
Upgraded insulation reduces energy costs and improve heating and cooling in any home. Adding insulation to ductwork reduces the 20 to 30 percent loss of efficiency that experts report cost us more money.
Programmable thermostat
A programmable thermostat allows homeowners to manage their HVAC systems to run at minimal output when family members are sleeping or out of the home. This is a very affordable upgrade that will provide an instant reduction in electric bills.
Tech Upgrades That Add Appeal
Everyone loves a new gadget. Some gadgets seem to be trendy and fall out of favor, but others prove their usefulness and stand the test of time. The following are a few technology upgrades you can add to your HVAC system that will add both appeal and value.
Smart tech
Smart thermometers have become pretty mainstream and you may find they’re a requirement for selling your home. Some smart thermostats offer remote control and monitoring; however, others can “learn” your habits and take it from there. Some can even sense and identify your phone to know when you’re on the way home.
One distinct advantage of smart thermostats is their ability to report on your energy usage. If you’re concerned about rising electric bills, a smart thermostat can provide data to help you find ways to cut back.
Smart vents are another new innovation that integrate with smart thermostats to precisely control the temperature and airflow in each room of the home. It also reduces airflow to unoccupied rooms without disrupting your HVAC system’s balance. You can install smart vents to create zoning in your home to reduce energy usage or provide a custom environment for vulnerable family members.
Air purification
According to the EPA, residential indoor air can carry 2 to 5 times more contaminants that outdoor air. Adding air purification devices along with improved filtration can provide excellent indoor air quality, adding both value and appeal to your home.