How Do AC Units Affect Home Value?

AC unit on the side of a house

Air conditioning is one component of a home that is always in the conversation whether you are buying or selling. Sellers want to know if upgrading will add value and if so, just how much, and buyers want to know if the current system is adequate for their needs. In southern Ontario, summers can be hot and humid, so not having one isn’t really an option, but does it affect the value of the home?

The Invisible Upgrade

The fact that air conditioning is such a basic part of new homes these days makes the “does AC add value to a home?” question relatively tricky. Most homebuyers simply expect AC to be a part of the package. So having a new system won’t necessarily add additional value to the home and allow you to raise the asking price. If you add a new air conditioning system, it will likely be seen as an “invisible upgrade” meaning it won’t carry as much weight as more obvious upgrades like new countertops, a bathroom renovation or flooring. The new addition will be noted and may be appreciated, but people won’t likely pay more for it.

It’s Still a Must

Despite the fact that it likely won’t add monetary value to add a new AC unit, it’s still important that the air conditioning is there and in good working order. You may not recover all of the costs of installing an AC system, but if you don’t have one or if the one you have is in disrepair, it might affect the sale of the house. Since it is just an expected part of the process, you may lose the sale or have to settle for a lower price if the buyer feels they need to have one installed.

AC unit with clipboard and tool kit ontop

Different Variables to Consider   

There are several variables to consider when determining how an AC unit will affect the value of a home, and not all situations are the same. If most of the homes in your area have no AC unit at all, then installing a new system will be seen as a valuable addition. On the other hand, if most of the homes on your street have upgraded over the past few years, you might notice lower offers if you don’t do the same. 

The current value of your home is also a factor. You can find out how much a new AC system has improved home values in your area, then factor in the cost of the system and use some basic math to decide if an upgrade is worth the money. If you aren’t able to recoup enough of your investment but can still make the sale, perhaps a maintenance call would be better to get the system you have in good shape for summer instead of upgrading to a new one. 

Whether you want to upgrade your A/C unit or simply keep it maintained, the experts at D&B ClimateCare have got you covered.