How much Resale value does central air add to home?
I was asked the other day, "How much does having central air add to the value of a home?" Is there anyone in the real estate business here that knows? Lets just say we have a home worth $100,000. We add central air conditioning, how much is it now worth? Is there a certain percentage?
The reason I am asking because I did an install the other day, and the folks said besides comfort, their main reason was to increase the resale value of their home.
I know pricing of air conditioning is not allowed here, but I am not asking for pricing of systems, merely what percentage of value does it add to a home.
Mods, if this is a problem, move to pro forum. Thanks, joe.
I see no problem with this post. I for one would like to know how the pro's answer it and come up with their percentage..
I would guess a lot depends on location. Down south probably more than here up in the midwest. Today was the first time I turned mine on. Last year, never used it.
In an area where central AC is considered "required" for living, I imagine adding AC to a home that doesn't have it will add a good bit to the value.
It is market dependent, but in my area, a brand new HVAC system adds $0 to the "market value" of a home compared to what it would be with an old low efficiency system. Considering that I'm in north Texas, I think that is messed up.
The only benefit to having a new high efficiency system, vs and old system, when it comes time to sell the home in my area is that it is one more bullet on the MLS listing that makes the house look better to potential buyers.
IMO, it is one of the problems with the new construction industry in some areas.
Because of how the value of a home is determined, a builder/developer won't be able to sell a house for more if they spend more money on the mechanical systems of the house, unless someone ordered it as an upgrade, so they go for the cheapest HVAC, plumbing and electrical installations they can get, and spend the money on granite counter tops, travertine and hardwood floors, etc.
I always laugh inside a little when someone tells me something like "The builder built this house for himself, so we figured he used the best".
Ummmm, no, it's a spec house he had no buyer for when it was going up. You got a house built as cheaply as possible, that was dolled up with fancy counters and finishes...
AC is not thought of as a luxury anymore.
If you are adding it to help sell the house that is one thing but it will not increase the value of your home by the amount it cost you to install it in my opinion.
The way we build has a greater impact on our comfort, energy consumption and IAQ than any HVAC system we install.
central air value
When I was looking at home I felt that central ac made the home more appealing. No two homes were exactly alike so it would be hard to determine a monetary value. It makes a home more marketable when selling.
In my world.....
I wouldn't even consider buying any home that didn't have a decent HVAC system.... The newer and more efficient, the better....
Of course I can always fix and upgrade ...... but at face value, the better......the better.....A nice heat pump/ dual fuel should add 15-20 k......
Evap cooler--- floor furnace-------minus 10- 15 K.....
Life goes on long after the thrill of living is gone.
Funny thing. A/C generally adds no value to a home and todays homes are expected to have it.
However, no central A/C may subtract value from a home as it is a negotiating point to be addressed.
I work with a few top producing realtors and have posed this question before to them.
In most instances the seller will lower the sale price to half the cost of an installed system where I am.
Central A/C is a good marketing tool though on a hot day like today in the midwest.
I recently put in a system for an older lady that was selling her home and has never had A/C. The realtor told her to have central air put in before she would even list it.
Originally Posted by mark beiser
Sounds 100% correct to me. With one exception if its a Coleman it does raise the selling price
No Heat No Cool You need Action Fast
well i am going to the horses mouth so to speak for my area, i have a call into a real good friend of mine who is a real estate agent,
i am betting that the monetary value is $0 or %0 which ever way you choose to look at it, but i would rank it up there with curb appeal, doesnt add monetary value but defiantly helps make a sale
there are sevral factors.
I have installed a few right before they were selling a house and decided to add a/c. They figured dollar for dollar return and they would beat out the house down the street with no a/c. this was after they lived in the house with just an evap for 20 years.
I have also heard that depending on the region banks / lenders will not lend without it.
look at the value of a car with and without? The one with a/ c will sell first for sure. So if it takes 6 extra months to sell it because no a/c, I think I would spring for the install.
in sothern nevada you can hardly find a house without, but when I worked on the central coast of cali, very few had it in the beach cities.
I think the region and temp has a lot to do with it