Page 1 of 3 123 LastLast
Results 1 to 13 of 29
  1. #1
    Join Date
    Aug 2004
    Location
    Dupont Pennsylvania
    Posts
    324

    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.

  2. #2
    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..

  3. #3
    Join Date
    Jan 2007
    Location
    Milwaukee Wisconsin
    Posts
    984
    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.

  4. #4
    Join Date
    Aug 2004
    Location
    North Richland Hills, Texas
    Posts
    14,914
    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...
    If more government is the answer, then it's a really stupid question.

  5. #5
    Join Date
    Apr 2002
    Posts
    11,808
    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.

    http://www.ductstrap.com/

  6. #6
    Join Date
    Jun 2005
    Location
    NJ
    Posts
    23

    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.

  7. #7
    Join Date
    Oct 2003
    Location
    34.8n 102.4w
    Posts
    3,244

    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.

  8. #8
    Join Date
    Jul 2006
    Location
    MN
    Posts
    173
    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.

  9. #9
    Join Date
    Jan 2006
    Location
    Near Atlanta, GA.
    Posts
    14,512
    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.

  10. #10
    Join Date
    Dec 2002
    Location
    Toledo, Ohio, United States
    Posts
    12,910
    Quote Originally Posted by mark beiser View Post
    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...

    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

  11. #11
    Join Date
    Feb 2003
    Location
    S.W. PA
    Posts
    3,298
    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

  12. #12
    Join Date
    Feb 2003
    Location
    S.W. PA
    Posts
    3,298
    Quote Originally Posted by twilli3967 View Post
    Sounds 100% correct to me. With one exception if its a Coleman it does raise the selling price

    yea but thats because of all the hassle they had to put up with dealing with those coleman dealers

    kinda like a pain and suffering fee

  13. #13
    Join Date
    Sep 2002
    Location
    Boise Idaho
    Posts
    1,032
    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

    matt

Page 1 of 3 123 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Comfortech Show Promo Image

Related Forums

Plumbing Talks | Contractor Magazine
Forums | Electrical Construction & Maintenance (EC&M) Magazine
Comfortech365 Virtual Event