Does A New Furnace Increase Home Value?
If you are preparing to sell your home, you might start looking differently at all your home appliances and furnishings. You want everything in your home to look and perform at its best so you can get the most money possible for your home. This might even inspire you to perform a few upgrades to boost your home’s value. If your furnace could use some upgrading, you might be tempted to swap it for a new one. But does installing a new furnace increase your home’s value?
Installing a new furnace does not noticeably increase your home’s value. It is, however, still worth replacing if it is old or is not functioning properly. Bad furnaces are likely to come up as a red flag during an inspection, and could scare off some buyers. A new furnace is a great way to cut down on energy costs and can help facilitate a quicker home sale.
If you are looking to sell your house, or are simply wondering if it is worth it to replace your furnace, there is a lot to consider. Sure, you want every dollar you put into your home to increase its value. But that just isn’t realistic. While a furnace does not directly increase your property value, it still has its benefits. Before you decide to neglect your aging furnace, consider the benefits to replacing your furnace.
Will Installing A New Furnace Increase Your Home’s Value?
Furnaces are not cheap. Installing them is not a simple job either. Therefore, you are probably hoping at the very least all this time and money will increase your home’s worth. Unfortunately, installing a new furnace does very little to increase your home’s value.
The main reason a new furnace is not likely to increase your home’s value is because a working furnace is more of an expectation rather than a selling point when purchasing a home. However, this does not mean a new furnace won’t help you sell your home.
When you install a new furnace, you could potentially help speed up the selling process. When you have an old furnace, it is likely to get flagged in a walk-through or final inspection.
This could lead to further negotiations or the potential buyers requesting you replace the furnace. This process slows the sale and can even scare off potential buyers. Remember, just because the furnace does not increase your overall home value, it might improve the selling experience.
Four Key Benefits To Installing A New Furnace In Your Home
Another thing to think about is the fact that just because a new furnace does not increase your home value, it doesn’t mean there aren’t lots of benefits. In fact, if you are contemplating whether or not you need a new furnace, you should start considering all the benefits. A new furnace might be costly, but there are some definite selling points. Below we have listed four of the top benefits to installing a new furnace in your home.
1. Savings On Utility Bills
If you have an old furnace, or a low-efficiency furnace, upgrading to a new one can save you a lot of money. Furnaces continue to become more and more efficient. Where furnaces were once usually 80 percent efficient, there are now many new models that are 95 percent efficient. This means swapping out your old less efficient furnace for a much more efficient furnace could save you 15 percent on your heating costs.
2. Makes The Home More Attractive To Buyers
Just because you won’t be able to increase the price of your home doesn’t mean you don’t want to make your home attractive to buyers. New appliances, especially things like furnaces, water heaters and HVAC systems, are incredibly attractive to home buyers. The idea here is the less money the buyer will have to put into repairing the home in the immediate future, the better.
3. Old Furnaces Could Cause A Red Flag During Inspection
As previously mentioned, a crummy old furnace can cause issues during home inspections, and even during an open house or walk-through when selling a home. An old furnace can scare away some cautious buyers. It also tends to slow down the selling process, which can make things stressful. This is especially true if you are hoping for a quick sale.
4. More Reliable Heat
Another thing to think about is yourself. You want to make sure you add value to your home when you make home improvements, but you also want to stay warm in the winter. If the winter is approaching and your furnace is on the fritz, you should seriously consider buying a new one.
Also remember that shopping around for a furnace when you have time and it is not an emergency, tends to be less stressful and expensive than when you need a new furnace in a pinch in the winter.
When It Is A Good Idea To Replace Your Furnace
Now that you understand your furnace might not increase your home value but replacing an old one has lots of benefits, you probably want to know when you should replace it. Below we listed some of the most common and important times when you should replace your furnace.
When It’s Old And Outdated
One of the most common times to consider replacing your furnace is when it is officially old and outdated. Furnaces tend to last anywhere from 15 to 20 years. If you have a furnace that is 20 years old, you should start seriously considering replacing it.
The Furnace Requires Frequent Repairs
If you are finding yourself having to repair your furnace more than once in a year or two, you might want to start taking that as a sign. Once problems with your furnace start requiring costly fixes more than once, it is time to start shopping around for a new one. Repair costs can really stack up. If the furnace is 15 years or older on top of it, then start saving to replace it.
When It Poses A Safety Risk
If your furnace is in any way posing a safety risk you should have it replaced immediately. A safety risk is not always that easy to identify, but your furnace is often connected to a natural gas line, so any damage involving gas can have catastrophic consequences, including carbon monoxide poisoning.
The Furnace Is Causing Issues With Potential Buyers
Another reason you might want to consider replacing your furnace is because you are asked to. Your realtor or even potential home buyers might ask you to replace the furnace if it’s old. While you are not under obligation to do so, it might mean the difference between selling your home and it remaining on the market.
Five Home Upgrades That Are More Likely To Increase Home Value
If you are looking to make a few upgrades in the hopes of increasing your home’s value, you now know a new furnace is not the best route. There are, however, several upgrades you can consider that are proven to almost always add value to your home. We listed five common home upgrades that increase your home value.
1. Upgrade Your Roof
A home’s roof can make or break a sale. An outdated, damaged and leaking roof will scare off even some of the most eager buyers. After all, a damaged roof can cause all sorts of unseen issues like mold and rot.
A new roof, on the other hand, is a huge selling point. It means the buyer won’t have to worry about roofing issues for a decade or even much longer. This also means you can often pass on most of, or even all of the roof cost onto the buyer and still have interest.
2. A New HVAC System
If you have wall AC units, and outdated heating and air conditioning in general, you might want to consider an HVAC system. This is not a cheap upgrade, but it can save you money over time compared to outdated systems.
HVAC systems in general are a big selling point for many home buyers. As technology improves, so do HVAC systems. A new HVAC system not only means a well-functioning machine, but it can have all sorts of new bells and whistles.
3. Install New Windows
New windows can increase home value for a few reasons. For one, just like with a roof, windows need to be replaced every so often, and it’s an expensive ordeal most buyers aren’t looking forward to. New windows also look great, usually come with a warranty and often cut down on your energy costs.
4. Kitchen And Bathroom Upgrades
Home buyers love modern kitchens and aesthetically appealing and functional bathrooms. These projects are great to consider if you are a talented DIY and construction enthusiast. You can really save on some renovation costs and up your home value significantly.
5. Turn Your Home Into A Smart Home
Smart appliances are becoming more and more standard. Upgrading your appliances and devices to smart devices is a great selling point. Smart lights, thermostats and security all add value to the home. They are great for you to enjoy as well.
Wrapping Up If A New Furnace Increases Home Value
If you are wondering if a new furnace will increase your home’s value, you will be disappointed to learn that it does not. It is, however, still a great thing to do as you prepare to sell your house.
A new furnace can facilitate a quicker sale. It is also something you should consider if your furnace needs frequent repairs, or is more than 15 years old.
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Tom Gaffey is an expert writer who currently resides in Washington D.C. Tom has a passion for real estate and home improvement writing, as well as travel and lifestyle writing. He lived the last twelve years in Hawaii where he worked closely with luxury resorts and event planners, mastering his knowledge of aesthetics and luxury products. This is where he found his passion for home improvement and a keen interest in DIY projects. Currently, Tom resides in Washington D.C, and also working on his debut fiction novel.
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