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 AC units affect home value at all and by how much. 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.
AC Is Still a Must
While adding a new AC unit may not significantly increase your home’s value, having a functional system remains essential. You may not recover the full installation cost, but a missing or faulty AC could impact your home’s sale. Buyers expect air conditioning, and if they anticipate installing one themselves, they may negotiate a lower price or walk away from the deal.
Different Variables to Consider
Several variables influence how an AC unit impacts home value, and each situation differs. If most homes in your area lack AC, adding a system becomes a valuable upgrade. However, if neighbouring homes have recently upgraded, leaving yours outdated could lead to lower offers.
Your home’s current value plays a key role in the decision. Research how much a new AC system has boosted home values in your area, then compare that increase to the system’s cost to determine if the upgrade makes financial sense. If the investment won’t pay off but you can still sell, a maintenance call may be a smarter choice. Tuning up your existing system could prepare it for summer without the expense of a full replacement.
Learn More About How AC Units Affect Home Value Today
Buying or selling is prime time to consider HVAC. Does the house you want have it and is the house your listing offering as much value as possible?
Whether you want to upgrade your A/C unit or simply keep it maintained, the experts at D&B ClimateCare have got you covered.
