Does A New AC Unit Increase Home Value? Ensure Whether It’s A Smart Investment!

Charlie D Paige profile pic

If you are considering purchasing a new air conditioning unit for your home, there are a lot of factors to consider, one of which is whether or not a new AC unit can increase the value of your home.

Of course, having a comfortable and cool home during the hot summer months is a priority for many homeowners, but can this investment also provide a significant boost to the resale value of your property? 

This blog post will explore the relationship between a new AC unit and home value to help you make an informed decision.

A new central air conditioning unit can be a lifesaver during the hot and humid months. 

However, homeowners may wonder if installing a new AC unit regarding their home’s resale value is worth it. 

According to consumer analysis in 2018, homes with AC units sold for 2.5% more than homes without. 

But the value added by central air varies by location. 

For example, buyers may expect AC in warmer climates and consider it a necessity. 

Ultimately, installing a new AC unit can add to a home’s overall salability and value.

Does The New AC Unit Increase Your Home Value?

Does The New AC Unit Increase Your Home Value
Does The New AC Unit Increase Your Home Value

A new HVAC unit is not only an investment in your home’s comfort but also in its value. 

With an average return on investment of 60%, a new HVAC system is a smart home improvement choice. 

An HVAC system includes heating, ventilation, and air conditioning equipment that keeps your home comfortable and efficiently regulates air quality and ventilation. 

Homeowners should consider updating their HVAC system to improve energy efficiency, add central air conditioning, and ensure proper heating. 

A new HVAC system can provide numerous benefits beyond simple comfort and positively impact your home’s value.

If you live in a mobile home, it might be quite different from traditional homes.

For example, if you plan to install a furnace in a mobile home, you must check on the suitable model. Depending on the model and features, the furnace may cost $1000 to $5000.

When Does The AC Unit Impacts The Value Of Your House?

When Does The AC Unit Impacts The Value Of Your House
When Does The AC Unit Impacts The Value Of Your House

Installing a new HVAC unit can increase the value of your home, especially in areas where air conditioning is a must-have. 

A new and up-to-date HVAC system can appeal to potential buyers, as it ensures the home is up-to-date and has features that will appeal to them. 

An outdated or broken system will surely throw roadblocks to getting the most out of your property.

 If you have an older home constructed without central air conditioning, it is worth investing in a central AC system, as it can add value to your home and make it more marketable. 

Consider other alternatives to improve the cooling and heating in your home, such as a ductless mini-split system. 

This is a great way to make areas of your home more comfortable in the summer and winter and improve the marketability of your property.

In homes where it is a must-have, central air can add value and enhance the salability of your home. 

However, some analysts consider HVAC replacement an invisible improvement that buyers rarely pay extra for. 

Therefore, consulting with a top agent who knows what buyers want in your market can help ensure that your improvements are worth the investment.

 Do not waste money installing central air if it doesn’t add value to your home

Focusing on enhancing other features or maintenance that might increase the home’s value is more important.

For example, installing a new fence will also increase your home value.

When Should You Replace The Old AC Unit 

When Should You Replace The Old AC Unit
When Should You Replace The Old AC Unit

An old AC unit can become a nightmare in scorching summer. 

Not only does it fail to provide any respite from the heat, it can also lead to energy waste and increased electricity bills. 

How do you know when to replace your old air conditioner? 

There are several signs that your AC unit needs to be replaced. 

1. If your AC is over 10–15 years old, it’s time for an upgrade. 

2. If your AC requires constant repairs or its efficiency has decreased, it indicates that the end is near. 

3. If your AC unit has stopped cooling efficiently, emits strange sounds or smells, or has visible leaks, then it’s time to bid it goodbye. 

A new AC unit increases your home’s comfort, efficiency, and value.

What Are The Factors You Need To Consider When Upgrading The AC Unit 

What Are The Factors You Need To Consider When Upgrading The AC Unit
What Are The Factors You Need To Consider When Upgrading The AC Unit

When it comes to increasing the value of your home, upgrading your HVAC system can be a smart investment. 

However, it’s important to consider a few factors before choosing to upgrade. 

First, consider the age of your current HVAC system. If it’s over 10–15 years old, upgrading to a newer, more efficient system can save you money on heating and cooling costs, and make your home more appealing to potential buyers. 

Additionally, if your home doesn’t currently have central air conditioning, consider installing it, as this feature is becoming an increasingly important factor for buyers, especially in hotter climates. 

Finally, consider other options for improving the heating and cooling in your home, such as ductless mini-split systems, which can make specific areas of your home more comfortable and improve its marketability.

In terms of adding value to your home, while a new HVAC system can certainly increase the salability of your home, it may not necessarily add significant financial value. 

Some analysts consider replacing the HVAC system an “invisible improvement,” meaning buyers are unlikely to pay extra for it. 

However, in areas where air conditioning is essential, buyers may see it as a desirable perk. 

Ultimately, the value added by a new HVAC system will depend on factors such as your location, the local real estate market, and what other homes in your area have to offer.

To determine whether upgrading your HVAC system is a worthwhile investment, it’s important to consult with a top local agent who knows what buyers are looking for in your market. 

Generally, homes in warmer climates and newer homes are more likely to have central air conditioning. 

How Much Does The New AC Unit Cost?

How Much Does The New AC Unit Cost
How Much Does The New AC Unit Cost

A new AC unit can come at a high cost, depending on factors such as location and brand choice.

The average cost of a new unit ranges from $3,500 to $7,500. 

Additional costs may occur if ductwork needs to be restructured or if the homeowner wants to switch to a new type of refrigerant.

When considering purchasing a new AC unit, considering the long-term benefits is important. 

A new unit increases home value and provides energy savings and improved air quality. 

It’s a significant investment that can provide a return of up to 60% on the initial cost.

Upgrading an AC unit may not seem as exciting as other renovation projects, but it’s a smart investment that can add significant value and comfort to a home.

Does The Home Appraiser Check On Your AC Unit

Does The Home Appraiser Check On Your AC Unit
Does The Home Appraiser Check On Your AC Unit

When it comes to selling a home, homeowners often wonder if they need to upgrade to central air conditioning. 

According to consumer analysis, homes with air conditioning sold for 2.5% more than those without. 

However, home appraisers do not check on the components of your AC unit but may ensure that it is in working condition. 

If the AC unit is malfunctioning, then the home appraiser considers it a factor that will decrease the home’s value.

Installing central air conditioning can increase property value by 10%, but pricing depends on other market conditions.

Why You Must Replace A New AC Unit Before Selling The House

When selling a house, it’s important to ensure the property is in top-notch condition to get the most out of the sale. 

One smart way to increase the value of a home is by replacing the HVAC system, especially if it’s old or broken. 

A new and updated AC unit may only attract some buyers, but it’s sure to catch the attention of those who know the value of a well-maintained home. 

Additionally, a potentially expensive investment like this can provide an excellent return on investment as it increases the efficiency of the home and saves money on heating and cooling. 

When considering an upgrade, homeowners should consider several factors, including whether the location necessitates air conditioning and the age and functionality of the current system.

Replacing an HVAC system is a great way to increase a home’s value and attract potential buyers, but it’s essential to properly evaluate the planned renovation projects to make sure they are worth investing in. 

Lastly, if homeowners decide to invest in a new HVAC system, hiring a qualified technician to install it is crucial. 

A professional installation protects the system and ensures it works as it should. 

Additionally, warranties depend on professional installation, so if homeowners decide to install the system themselves, their warranty could be voided if the parts fail to work as they should. 

How To Know Whether The Current Air Conditioning Unit Does Not Impact Your Home Value

How To Know Whether The Current Air Conditioning Unit Does Not Impact Your Home Value
How To Know Whether The Current Air Conditioning Unit Does Not Impact Your Home Value

When thinking about updating your home, consider replacing your air conditioning unit. 

However, you might be wondering if it will actually increase your home’s value. 

While having a modern air conditioning unit can improve your home’s marketability, it may only sometimes increase home value. 

The value of your home depends on various factors, including location and the housing market.

It’s important to consider whether your current air conditioning unit is working efficiently and effectively. 

If it isn’t, it might be necessary to replace it. 

But, if your current system is in good condition and doesn’t need a replacement, it might not be worth upgrading to a new unit solely for the purpose of increasing your home’s value

It’s always best to consult with a trusted real estate agent or professional for advice.

Benefits Of Fixing A New AC Unit

An HVAC system is essential to any home, providing heating, ventilation, and air conditioning. 

If you are considering upgrading your HVAC system, there are several benefits to doing so. 

By installing a new AC unit, you can significantly improve the comfort of your home, especially during extreme weather conditions. 

In addition, a new HVAC system can significantly improve the air quality within your home by filtering out harmful particles and reducing humidity levels.

Investing in a new HVAC system can also save your monthly energy bills, especially if your current system is outdated and inefficient. 

A new, high-efficiency unit can reduce energy consumption and lower electricity bills by up to 20%. 

Not only can this save you money, but it can also add value to your home by making it more desirable to potential buyers. 

A new AC unit is often seen as a major selling point for buyers who are looking for a home with modern features and functionality.

Final Thoughts 

A new AC unit is a smart investment for anyone looking to increase the value of their home. 

While not as flashy as other improvements, a new HVAC system can provide a return on investment of around 60%. 

Consider factors like the age and capabilities of your current system when deciding whether to upgrade. 

If your system is over 10 to 15 years old, you can benefit from the improved efficiency of newer systems. 

Additionally, lacking central AC can be a dealbreaker for some buyers, so installing it in older homes is a good idea. 

You may also want to consider other upgrades, like a central dehumidifier or a ductless mini-split system.

Annual inspections and regular maintenance can help keep your system running smoothly, but it will eventually need to be replaced. 

Signs that it might be time include steadily increasing energy bills, strange noises, rust or cracking, and uneven heating and cooling. 

Similarly, an older AC unit that’s blowing warm air, making strange noises, or leaking may be on its last legs.

In conclusion, installing a new AC unit offers more than just comfort benefits. 

It can improve your home’s value and provide a significant return on investment. 

Additionally, a new system will have added benefits like better energy efficiency and improved air quality. 

When deciding whether to upgrade, consider factors like age, capabilities, and cost to determine if a new AC unit is the right investment for you and your home. 

Related Blogs: How Much Does A New Roof Add To Home Value?


How Much Electricity Does The New AC System Save?

Upgrading an old AC system to a high-efficiency one can significantly reduce energy consumption, resulting in lower energy bills. 

The Seasonal Energy Efficiency Ratio (SEER) measures the efficiency of an AC system, with a higher SEER rating indicating greater efficiency. 

An old AC system with a 10 SEER rating can be upgraded to a 13 SEER system, resulting in a 23% savings on average annual energy costs. 

Opting for a more efficient 16 SEER system can save up to 38%.

What Is The Lifespan Of A Home AC Unit?

A home AC unit’s lifespan typically ranges from 10-15 years. 

Regular maintenance, such as changing filters and cleaning coils, can help extend the lifespan. 

However, if the unit is reaching the end of its lifespan, it may be more energy-efficient to replace it.

Replacing an old AC unit can increase a home’s value in terms of marketability and energy efficiency.

Are Old AC Units Louder?

With age, AC units tend to get louder due to wear and tear on the mechanical components. 

So, if you’ve noticed your AC unit getting noisier, consider replacing it. 

A new AC unit can increase your home’s value, provide better cooling, and reduce energy consumption.

Charlie D Paige profile pic
About Charlie D Paige

Charlie is a massive DIY fan, with dozens of DIY projects under his belt - ranging from tiling to electrics, and concrete pads to walls. Charlie loves tinkering, seeing how things works, the outdoors and playing with power tools... so is it any wonder that he's completed so many DIY jobs over the years?

Charlie loves spreading his hard-won DIY experience with the world via this blog.