Will a New AC Add Value to Your Home? Calculating the Cost vs Value Increase

How much value does AC add to a home? This can be a crucial question when you're thinking about home improvements that might increase your resale value. It can also be a good question if you're just trying to think ahead but aren't planning on selling or moving anytime soon. Installing a new AC can add value to your property in two key ways.

Value Increase

On average, potential homebuyers are willing to spend $2,500 to $3,000 more for a home that has air conditioning, especially if it's a newer central split system like a Gree Flexx. Anyone buying a home is making a huge purchase, and they don't want to face additional big spending for as long as possible. If most homes being sold around your area have air conditioning, then you might face difficulty selling your home without this feature. One nice thing is that while the property value increase might not help you at resale time, it's not likely to boost your property taxes that much.

Calculating the Cost

A new AC unit runs anywhere from $5,000 up to $10,000, with the national average at $7,000. If your home is more than 2,500 square feet, then installing a new system can get even more expensive. High ceilings over 8 or 9 feet can also drive up costs. For many homes, the return on investment for adding a new AC is approximately 25% to 50%. There's rarely a home improvement that pays for itself purely in terms of adding resale value. What this type of upgrade can do is add value in terms of reducing your utility bills while you're still in the home. If your current AC system is 10 years or older, a modern replacement might be as much as 40% more efficient.

When It Makes Sense

Many parts of the United States have mild summers where air conditioning isn't really a necessity. How do you know when adding AC can bring value to your home?

Forced Air Heating system

If you have a forced air heating system in your home, then adding a cooling component might be cheaper than putting in central air. You won't have to install ductwork if you do this.

Humid Climate

The southeastern region isn't the only place in the country that's hot, but it certainly is humid. Air conditioning is practically a daily necessity, even in portions of the spring and fall seasons. Central air systems don't just make the temperature inside a home lower but also the relative humidity. That's going to increase physical comfort indoors.

No Current AC system

Are you relying on window-mounted AC units to spot-cool certain rooms? They're certainly cheaper than a central installation, and they also don't add any value to your home. They don't do much for curb appeal and could turn away home shoppers that check out your home from photos or the street before looking to see inside.

Rebates

Depending on where you live, there might be tax rebates, credits, or incentives that make energy-efficient appliances more affordable to you. Saving the environment or just being more friendly to it is a cause worthy of promotion, and so many states and municipal governments do what they can to encourage homeowners to upgrade to new appliances that use electricity with far more efficiency.

Making a Decision

If you were wondering how much value does AC add to a home, then you know by now that some calculations are involved in determining that. The increase in how much homebuyers might pay for a home with AC is often less than the cost of installing air conditioning. However, there might also be value in your own use of the system until you sell or move. Check out the options available through Comfort Plus to see what's possible for your home.