Are you considering installing a new furnace system for your home? Get expert guidance from Leith Heating & Cooling today.
When considering putting your home on the market, you want to ensure it’s in excellent shape to attract potential buyers. Home improvement projects like adding a swimming pool, a new deck or patio, or a finished basement may look more appealing at this stage, and for good reasons.
However, replacing your furnace can also have a decent impact on your property’s homebuyer appeal. How does a new furnace increase home value?
Read on to find out why you should reach out to one of the leading HVAC companies in Elgin as soon as possible to pick out a replacement furnace for your home.
How Does a Furnace Increase Home Value?
According to various sources, installing a new furnace with modern HVAC features can increase your property’s value by up to 10%. Here’s how:
Positive Property Appraisal Impact
Property appraisers will consider all the improvements in your property when assessing its market value. A new high-efficiency furnace will positively impact the property appraisal, especially in a climate like Elgin’s.
More Homebuyer Appeal
Purchasing and installing a new high-efficiency furnace can cost up to $10,000.
The sum may be higher if a new duct is necessary. Many potential homeowners will appreciate not worrying about this expense for another decade or two.
Those considering similar properties in the same areas will be more willing to choose a property with a new furnace than one with an old unit.
The reasoning behind this is simple. According to the U.S. Department of Energy, HVAC systems such as the furnace are responsible for half the energy consumption in the average home.
Therefore, potential homeowners will likely look more favorably on properties with a new furnace that guarantees energy savings. Data from the National Association of Realtors backs up this assertion. Heating and cooling costs are major considerations for 30% of home buyers.
So, your property will likely sell faster if it has a new energy-efficient furnace.
How a New Furnace Benefits You Right Now
As the homeowner, you stand to gain other benefits from installing a new furnace in your home, such as the following:
Tax Rebates
Illinois offers tax rebates of up to $600 for installing a new furnace system. This puts a significant portion of your expenditure on the new furnace back into your pocket.
High Return on Investment (ROI)
According to various sources, the ROI for installing a new furnace can be up to 60% when listing the property. In other words, you can expect the price of your home to increase by up to 60% of the cost of your new furnace.
Energy Savings
If you live with the new energy-efficient furnace for a few years before selling your home, you can enjoy lower monthly heating costs. Your new furnace starts paying for itself from the day you install it.
Should You Replace Your Furnace System?
Does a new furnace increase home value? Most certainly! However, you still need to carefully evaluate your situation to confirm that the new furnace will move the needle regarding your home’s valuation.
You don’t need to buy a new system if you already have a high-efficiency furnace working optimally. Conversely, you should buy a new furnace system if any of the following applies to your furnace:
- Higher energy bills. If your energy bills have risen steadily in the last few years, it’s a sign that your furnace system is due for replacement.
- Noisy operations. Does your furnace make rattling sounds while running? An HVAC technician may recommend fixes or tell you if it’s more beneficial to replace the system.
- Cracked heat exchanger. A cracked heat exchanger is a fire hazard. It also exposes you to the risk of carbon monoxide poisoning. Again, you can swap out the cracked component, but replacing the entire furnace may be more beneficial if it’s already past its prime.
- Uneven heating. Is your well-maintained furnace struggling to keep all parts of your home warm in the winter? It’s most likely on its last legs.
How To Choose a New Furnace System That Will Improve the Value of Your Home
Here’s how to increase the probability of your furnace system improving the value of your home:
Choose a Reputable Brand
A new furnace from a widely respected brand that many homebuyers have heard of will command more perceived value than one from a less popular or completely unknown brand.
If you choose an imported brand to save a few hundred dollars, you may lose all the potential benefits of an increase in home value.
Choose the Highest-Efficiency Model Possible
As mentioned above, HVAC system efficiency is more important than ever to potential homeowners.
You must ensure your new furnace system has a high Annual Fuel Utilization Efficiency rating. Though 90% is the base rating, it’s best to choose systems that are as close to the top band of 98.5% as realistically possible.
Ensure the Furnace is the Right Size for Your Home
Work with qualified HVAC technicians to ensure your chosen furnace is ideal for your home. If the unit is too small, it will run longer cycles to keep your home warm, leading to more frequent breakdowns.
Similarly, if the system is too big, it will run shorter cycles, consuming too much energy in each.
Leith Heating & Cooling Can Help
Does a new furnace increase home value? Yes! However, you must ensure your old furnace is due for replacement. You must also choose the ideal replacement system for your home. That’s where we come in.
At Leith Heating & Cooling, our HVAC technicians have extensive experience replacing furnace systems for homeowners. We will recommend a high-efficiency furnace to improve your home’s value. We will also tell you what to expect when you maintain your furnace regularly.
Call the Leith Heating & Cooling team in Elgin, IL, today at (847) 534-8686 to schedule a consultation.