Every homeowner knows that maintaining a property is essential to keeping its value intact. Besides indoor sections like the kitchen, bathroom, and bedrooms, a home's heating, ventilation, and air conditioning (HVAC) system is one of its most important components.

A well-functioning HVAC system can improve your home's comfort and health and increase its value. This article explains why such a unit is a worthwhile property investment, whether you intend to sell your home soon or in the future.  

1. 1. A new HVAC system impacts home appraisal

It's no secret that an AC service can dent your savings. Estimates suggest that a new HVAC system installation can set owners back up to USD$12,500, depending on its size and capacity, the home’s layout, and the scope of work.

However, investing in one can be a worthwhile expense, especially if you’re planning to sell your home soon. Appraisers consider all improvements in a property when assessing a home’s market value.   

Various sources suggest that a new HVAC unit can increase the value of your home by as much as five to 10%. However, this value will depend on several factors, including the age and type of your current unit and your home’s location. 

1. 2. A well-maintained HVAC unit ensures ROI 

A homeowner who upgrades to a modern HVAC system with advanced features can list the property at a higher price than similar homes in the area that don't have one. Overall, installing a new unit provides a significant return on investment (ROI) of around 60%, per a home improvement site estimate. Conversely, an aging and poorly kept unit can reduce your property's overall price because the new owner is expected to spend significant costs on repair and replacement.   

Moreover, properties with relatively new HVAC systems don’t need to spend on a replacement if they know how to keep their units in great working condition. As a result, potential buyers are likely to make an offer on the home and less likely to negotiate for a price reduction.

Scheduling annual maintenance is key to keeping your unit in good condition. With these regular checks, HVAC professionals can spot and fix issues, preventing costly repairs.  

Fortunately, many HVAC companies offer promotions and discounts that help you save money on your system installation, maintenance, and upgrade. These include rebates and financing. For instance, one cooling and heating company offers a free air conditioner to a lucky foster dog parent. Watch this video to learn more:

Depending on the type, size, and features, an HVAC unit costs anywhere from USD$1,000 to USD$20,000. By choosing the right firm and taking advantage of promotions and discounts, you can increase the value of your home without breaking the bank.

3. Buyers are willing to pay premium price for properties with an HVAC system 

Besides increasing the resale value of a home, a well-functioning HVAC system can be a selling point for potential buyers, particularly in areas with extreme weather conditions. Suppose a person is considering two homes in the same neighborhood, one with a well-functioning HVAC system and the other without. In such cases, the homebuyer would be willing to pay more for the former because of long-term savings.

4. An energy-efficient HVAC unit reduces your power bill 

According to the U.S. Department of Energy, 49% of a household’s power costs cover heating and cooling.

HVAC systems with higher SEER (Seasonal Energy Efficiency Ratio) are more efficient and can help users save money in the long run. Newer HVAC units have higher SEER ratings, making them more attractive to property seekers.

Moreover, heating and cooling costs were one of the most important considerations among 30% of home buyers, according to a 2022 study by the National Association of Realtors. This makes properties with energy-efficient units likely to sell faster and at higher prices. 

An energy-saving cooling and heating system, particularly those with Energy Star certification, can generate annual savings of almost USD$140. Sealing ducts and insulating some spaces in your home properly can further reduce power consumption by 20% or more. Thus, a property with an energy-efficient system can further boost a home's value from five to seven percent because of such projected savings.   

Conclusion

An HVAC unit can provide numerous benefits to a property, including improved indoor air quality, energy efficiency, increased value, and prolonged lifespan.

If you're a homeowner looking to increase your property’s value, installing or upgrading your HVAC system is an excellent place to start or to complement other value-adding home projects. Also, remember to have your system regularly maintained and repaired by a professional service provider to ensure that it continues to serve as a significant asset of your property.

By investing in your HVAC system, you're investing in your property's future.