How Much Does a New HVAC System Add to the Value of a House?

Texas summers are hot and sweaty. Whether you’re facing the damp, humid heat of the east or the dry, brutal heat of the west, Texas homes need dependable cooling systems. Despite that, the winters can sometimes get surprisingly cold, and central heating is also necessary. If your HVAC system isn’t up to the job, life in Texas can get unpleasant. You might be finding that it’s time for a new HVAC system, but is that investment really worth it? Will it at least add to the value of the house? We have the answers to all of your burning questions.

Increasing the Raw Value of a House

Typically speaking, a new HVAC will add to the total value of your house. There are exceptions that we’ll cover later, but the gist is that your home will be worth more with the new system.

There is a huge catch to this. In most cases, a new HVAC system will cost more than it adds in total home value. The ballpark figure is that the home value can rise by as much as 50 percent of the HVAC system’s cost. Many factors affect this outcome, so we’ll break those down one at a time.

Upgrading an Older System

If your home already has central heating or air-conditioning (which most homes do), your new system is likely an upgrade. In many cases, you’re only going to have to pay for the new heating or cooling unit and minor ductwork. This makes the upgrade more affordable, and it increases how much value you get from the investment.

Generally speaking, ductwork does not raise the value of a home. Ductwork is extremely important, and you can’t skimp on it, but homebuyers don’t really look at the quality of the ducts running through the house.

Because of that, upgrades usually get closer to a 50 percent return on investment. If you don’t need any ductwork, you can even get above that 50 percent mark.

Installing Total HVAC Systems

In older homes, HVAC upgrades are more involved. There are plenty of old homes that don’t have central cooling or heating at all. Installing an HVAC in such a home is a major investment because most of the ductwork will have to be done from scratch. This investment will improve the value of the home, but you won’t get the same level of return as upgrading an existing system.

In other cases, you might have a central HVAC system that is more than 20 years old. When this happens, the new HVAC system has to be brought up to current building codes, and this often includes adding a lot of ductwork. That means that upgrades in older homes will get less return on investment than upgrades in newer homes.

Improving Efficiency

It’s easy to overlook, but HVAC upgrades can provide hidden value to your house. A new system is likely to be much more efficient than what you had before. This efficiency can lower the home’s heating and cooling costs, saving you money over time. It doesn’t raise the home’s appraisal value, but it does keep money in your pocket. When you factor that in with the raw home value you get out of the system, it makes the investment much more appealing.

Selling the Home Faster

Another hidden value of an HVAC upgrade comes from making it easier to sell the home. In reality, the value of your home doesn’t matter a whole lot to your finances. It’s nice to have property value, but that value only hits your pocket if you sell the house. One of the most valuable returns from a new HVAC system comes at this point. A house with a new, great HVAC system is going to be a lot easier to sell than a house that needs an overhaul.

Sometimes, It’s Necessary Regardless

Central cooling is important in a Texas summer. Whether or not the investment makes you money, you need a working system. The Texas heat isn’t just unpleasant. In many cases, it is dangerous. The central cooling system improves the quality of life and can protect you from serious levels of heat. Even if it didn’t raise your property value by a single dollar, the investment is typically worthwhile. Thankfully, you get some property value out of the process too.

There are a lot of reasons to get a new HVAC system. There are also a lot of choices when you make that decision. If you want dependable service from a company that’s on your side, contact Metro Express Service online or by phone at 817-516-0700. We’ll work with you to make sure you understand your options and what they mean. Once you pick your new HVAC system, we’ll install it professionally so that you know it’s a sound investment. Call us today!


Randy Murphy

Randy Murphy has been building his knowledge of the air conditioning and heating business for several years now. He first started applying his knowledge while working for his father’s HVAC company. Later, in 1987, Randy started his own business: Metro Express Service. He has been a top 10 Trane & Amana dealer for over eight years. When it comes to heating and cooling, Randy knows the business better than anyone.
Call Us At (817) 516-0700