The Real Estate Flip Option: When Upgrading the HVAC Counts
Wise investors know when to cut their losses and when to consider a flip option for Marietta real estate. Lots of home upgrades can drive up home values, while others simply will drive up the costs of the project. HVAC systems, in particular, have experts debating the value of installing new equipment when flipping homes for investment purposes.
We’re sorry to tell you that there’s no clear-cut answer. Here’s what experts recommend with regard to driving up the home’s value through an HVAC upgrade.
It depends on age. If the furnace and air conditioner are both nearing the end of their useful life-span - which is about 15 years - a buyer will have to consider the value of the home, taking into consideration the costs that he or she will have to pay to upgrade the systems. If your HVAC system is relatively new, the best course of action is to keep the units maintained. Frequent service will ensure that they stay in good operating condition and perform as efficiently as possible.
It depends on condition. Let’s say you have an older furnace and air conditioner, but you’ve painstakingly invested in maintenance for the units, faithfully scheduling a service appointment each year and changing out the air filter every month. In this case, and especially if you keep detailed maintenance records, buyers may be impressed with your flip option. For instance, some experts believe that a well-maintained furnace can last as long as 25 years.
It depends on your home. If the HVAC system is really old, and the home’s exterior is leaky and lacks proper insulation, upgrading the HVAC equipment won’t make much sense unless you also give the exterior a makeover. That’s because even if you install a high-efficiency furnace and A/C unit in the home, the system won’t perform if the home’s exterior isn’t shipshape. Before you consider purchasing an HVAC system, make upgrades to the home first.
Considering a flip option? Take the time to evaluate the home as a whole and decide whether an investment in HVAC equipment will truly add value. It’s a balance between making the correct upgrades that will allow you to sell and determining if the resulting sale will pay back said investment.