Remodeling projects are the most popular way of increasing the value of your home, but they don’t always yield a good return on investment. According to Harvard’s Joint Center for Housing Studies, homeowners spent more money (roughly 7.5% more on average) on home remodels from 2017 to 2018, yet the average ROI for these projects was a measly 56%, which is 12% lower than the ROI on home remodels done in 2016. That’s why an expansive or expensive remodel is by no means a guarantee that your home’s value will increase.
Fortunately, you don’t need to pursue a costly home remodel to increase your home’s property value. A more cost-effective alternative would be to improve aspects of your home that have a direct impact on the quality of living such as your heating or cooling system.
How can an HVAC upgrade increase the value of your home? And how can you maximize the ROI on an HVAC upgrade?
Lower heating and cooling costs Heating and cooling costs comprise a significant chunk of the average American home’s electricity bill, which is why it isn’t surprising that more and more homeowners are looking for energy-efficient features in a new home, and more importantly, are more willing to pay a premium for an energy-efficient home. In fact, homes with energy-efficient HVAC systems have a 5% to 8% higher selling point than homes without this feature, according to the U.S. Green Building Council and the Office of Energy Efficiency and Renewable Energy.
Improved Indoor air quality and comfort. Your home will even be more attractive to home buyers, especially those starting a new family, if it has an HVAC system with advanced air filtration capabilities.
Piquing Prospective Home Buyers’ Interest
It’s true that you’re unlikely to recoup all of your investment on a new HVAC system. However, it’s more likely to pique home buyers’ interests than an extensive remodeling project. Real estate experts agree that this benefit alone makes an HVAC upgrade well worth the cost. For more tips on how to maximize your ROI on a new HVAC system, consult a professional technician from an air conditioning repair service company.
Ar you looking for experienced HVAC technicians near you?
Palo Alto, a company with two decades of experience in the industry, offers a wide range of professional HVAC services, including HVAC installation and heating repair services. To schedule an inspection, call us at (650) 856-3400 or fill out this form. We serve homeowners in Palo Alto, CA, as well as the surrounding communities.