When tackling renovation projects to boost home equity, most people flock toward surface/cosmetic upgrades. The problem with this is, while it may be a low cost option for freshening up a space, these types of renovations typically aren’t worth nearly as much in terms of return on investment (ROI) as upgrading, say, your home’s HVAC systems. So, which upgrades are going to add the most equity to your home? We’re thrilled you’ve asked!
New insulation is going to be your lowest risk option, yielding, on average, a 95%-116% ROI. However, new insulation can still be a huge selling point for prospective homebuyers, as it assure them the home is going to be properly sealed, maximizing HVAC performance, for many years to come.
Furnaces and boilers usually begin to break down after 10-15 years, so if you have an older model, considering an upgrade isn’t the worst decision – unless you enjoy spending tons of money on frequent repairs. Not only is it a relatively simply upgrade with minimal labor, but the potential annual savings are well worth the investment.
Central Air (AC)
Your central air conditioned system is very much like your furnace/boiler in the sense that they wear down at about the same rate, and can create the same inefficiencies that will cost you later on – which is why if/when you replace one, you typically want to replace the other at the same time. The good news is, many HVAC companies offer special deals, savings, and rebates for purchasing your new furnace and AC units together!
Replacing your main HVAC systems? You may want to consider upgrading your air ducts too. Like heating and cooling systems, air ducts also begin to degrade after about 15 years, and old air ducts will likely not be able to handle the power of your higher efficiency models. Plus, as an added bonus, replacing your air ducts will naturally make your air much cleaner!
Windows, Doors & Weather Stripping
Having incredible insulation in your walls, attic, and other potentially drafty spaces does nothing at all if your windows, doors, and weather stripping aren’t of equal quality. However, by upgrading to double- or triple-pane vinyl insulated windows, interchanging any old weather stripping, and replacing your exterior doors with fiberglass, vinyl, or steel doors (the best insulators according to the National Fenestration Rating Council); you can add well over $11,000 in equity to your home, as well as recover more than 70% of your total energy costs!
As you know heat rises, which means if your roof is not properly locking in the heat, you could be losing as much as 25% of it. New high-tech asphalt shingles, however, can offer a 105% ROI, raising your equity by $12,000, by lowering the surface temperature of your roof by as much as 50 degrees and keeping your heat inside.
If you really want to go all out, you can also invest in other, more luxury HVAC upgrades as well that are sure to boost your home’s equity. Variable Refrigerant Flow (VRF) systems, for instance, control temperatures and airflow independently from room to room. Smart thermostats can increase and decrease temperatures automatically to maximize efficiency, and whole-home dehumidifiers increase the consistency of your air quality throughout your property. Just remember, whatever upgrades and renovations you decide to take on, don’t forget to enlist the help of our seasoned HVAC experts at AFM Heating & Cooling to make sure they get done right! Call AFM Heating & Cooling at 734.464.6700 for a free consultation, or simply fill out the form in the sidebar, today.