How to Add Home Equity with HVAC Upgrades

If you’re planning a home renovation and thinking about selling your home in the next few years, you’re probably looking for ways you can increase your home’s equity.

While marble countertops or a shiny, new washer and dryer are nice to have, an upgraded HVAC system will have a more significant impact on your home’s value. A home lacking necessary heating or cooling abilities is a huge deal-breaker for potential buyers and can end up costing you the sale, regardless of what other fancy renovations you have done.

And while the cost of HVAC upgrades might make you question its worth, The National Association of Realtors reports that HVAC remodels have a return on investment of up to 71%—higher than most other types of remodeling projects. So, the key for homeowners looking to increase their home equity is to understand precisely which HVAC upgrades will add the most value to their home. 

What is Home Equity?

Home equity doesn’t refer to the sale price of your home or even the property assessment. Home Equity refers to the difference between what you owe on your mortgage and what your home is currently worth. For example, if you owe $150,000 on your mortgage loan, but your home is now worth $200,000, you have $50,000 of equity in your home.

Installing quality HVAC system upgrades is one way to impact your home equity positively and potentially speed up the sale process when selling your home. Smart buyers look at every potential cost related to the purchase and investment of a home and looking at the HVAC systems is one of the top priorities for home buyers. Suppose buyers continuously pass on your home because of inadequate HVAC systems. In that case, it stays on the market longer, which adds cost in taxes, insurance, utilities, and maintenance while increasing the necessity to drop the sale price.

Here are 3 Ways to Add Home Equity with HVAC Upgrades

1. Add Central Air and Heating

One of the best improvements you can make is installing a central air conditioner or heater, as most potential buyers are searching for these to already be in a home they would purchase. Homes with central heating and air will have higher sales prices due to consumer demand, which drives up your home’s equity. You should expect to see a 10% increase in the value of your home.

2. Install Energy Efficient Upgrades

Energy-efficient homes are increasing in popularity among new home buyers, so when it comes to improving your home’s resale value, upgrading to energy-efficient appliances is a smart move. According to and the U.S. Green Building Council, homes with energy-efficient HVAC systems will see a 5% to 8% higher selling value than homes without.

3. Improve Home Air Quality

You can also improve your home’s equity by installing HVAC systems that will enhance home air quality. Adding humidifiers and air filters can make your home’s air more comfortable and safer to breathe, removing mold, bacteria, and other foreign particles. Check out our blog, How to Improve Your Home Air Quality, to learn more!

Make the Right Choices for Your Home with Supreme PHC

While all these upgrades are a great way to add equity to your home, the best advice we can give is to know which upgrades your home needs. Consider the region, age, and size of your home, as well as your budget to determine which upgrades make the most sense. Need some help deciding? Your professional HVAC team at Supreme PHC is here to help answer your questions. Call us today!