One factor that many people want to know when replacing their AC unit or installing central air conditioning in their home is how much the project will add to the value of their house. Whether or not the house has air conditioning is a major factor for most potential buyers. The age, condition, and energy efficiency of the AC system are also important considerations. Today we’re going to discuss how much a new AC unit or system can increase the value and appeal of your home to help you determine whether it’s worth the investment.

Market Value and Return on Investment

Real estate statistics show that homes with fairly new central AC systems that work effectively typically sell for around 2.5% more than similar homes without central air. On average, a central air conditioning system will usually increase the property value by somewhere around $2,000 to $3,000 more.

However, these numbers can be a bit misleading as it depends in large part on where you live. In hotter climates, air conditioning is something that most homebuyers always expect. As such, an AC system typically won’t really increase the value of homes in California by all that much. However, not having an AC system can definitely decrease the property value.

That said, it often doesn’t make sense to add central air to your home if you plan on selling it in the next year or two as you would usually have a poor return on your investment. If you were to install a central AC system just before listing and selling your home, the installation would typically cost quite a bit more than the value that the system would add to your home.

One factor that can affect whether central air conditioning will increase the value of your home is whether your home has central heating with an existing ductwork system. If your home does have ductwork, the cost for installing central air will be quite a bit less so you’ll get a better return on your investment should you decide to sell.

If your home already has central air conditioning, replacing your outdoor AC condenser can be a more cost-effective way to increase your property value. This is because it is not always necessary to replace the indoor part of the system when installing a new condenser. As such, the job won’t be as expensive and you’ll get a greater return on your investment.

Most AC units will only last for 15 years at the most. If your unit is 10 years or older, most buyers will understand that they will need to replace the unit fairly soon after they buy. In this case, the buyer may factor in the cost of replacing the unit when making an offer on the home.

Appeal and Salability

Where having air conditioning can really make a difference is when it comes to the appeal and salability of your home. In hotter climates like California, air conditioning isn’t seen as a luxury and instead is considered a necessity. Many homebuyers won’t even consider purchasing a house if it doesn’t have a central or ductless air conditioning system. This means you’ll likely get far fewer offers and have a much harder time selling your home if it doesn’t have air conditioning.

Since having a well-functioning AC system is so important in California, most buyers will again factor in how much installing an AC system will cost when determining how much they’re willing to offer. This means that a home without AC is likely to sell for $5,000 to $10,000 less since this is typically around what it will cost the new owners to have an AC system installed.

Why Energy Efficiency Is Important

One of the biggest factors in terms of both home value and appeal is the energy efficiency of your AC system. A home with a highly energy-efficient AC system will always be far more attractive to potential buyers, which can in turn help to drive up the price. The more energy efficient the system is, the less it will cost to operate.

Most prospective buyers will always want to know approximately how much your monthly and annual utility costs typically are. If your HVAC system is extremely efficient and your utility costs are relatively low, buyers will often be willing to offer more since they know they won’t be spending nearly as much on their energy bills.

This is one reason why replacing an outdated AC unit can be a great option if you think you may sell your home in the near future. Any AC unit that is more than 10 years old is almost guaranteed to be nowhere near as energy efficient as a new unit. Older AC units will also typically require many more repairs, which is another thing that buyers may take into account.

If you’re considering upgrading your home with central or ductless air conditioning or need to have a new AC or heat pump installed, you can count on Thompson Plumbing Heating & Air Conditioning for help. We are the number one choice for AC and heating installation in Oceanside, and we also offer professional HVAC maintenance, repairs, and residential plumbing services. For more information on the benefits a new AC system can provide to your home, give us a call today.

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