Does an AC Replacement Increase Your Home’s Resale Value?

An AC Replacement isn’t cheap. When does the investment add to the value of a house?

Nobody’s home is in perfect condition. Roofs deteriorate, water pipes break, and appliances wear out over time. When it comes time to sell your house, even homeowners who are punctual about home repairs still wind up with a list of items that ought to be fixed. Although, attempting to fix every issues in your home may be a lost cause, as many home repairs don’t add much to the resale value of the house. Simple, inexpensive fixes like painting or replacing faucets and fixtures can make your home more appealing to potential buyers and likely expedite a sale, but fixing larger issues may not be worth the cost. So how do you know which repairs are worth investing in, and which are better to leave as-is?

When it comes to issues like an improperly functioning AC system, it is important to assess the condition of your AC unit, the condition of your home overall, and the state of the home market in your area to help you determine whether to make the repair or sell your home as-is.

Selling Your House When the AC is in Bad Condition

Most buyers will expect an operable AC system when buying a house. Especially in Atlanta, Georgia, where the air can get hot and humid during the summer months, a broken or dysfunctional AC unit will, without a doubt, deter buyers.

On the other hand, when it comes to major home repairs, most only receive a 35%-50% return on the the investment, and AC repairs can be extremely costly. Replacing your entire AC unit can cost you thousands of dollar, but some minor repairs can get your AC unit back in working order for a lost-cost. To find out exactly how broken your AC is, it’s best to start with an inspection.

Many home services companies offer free or affordable AC system inspections. If your AC unit is blowing warm air, struggling to cool all areas of your house, failing to turn on, or if there are visible signs of an issue like water marks around vents or dust and grime buildup, start by hiring a technician to inspect and diagnose any problems you may have with your system. The cost to repair the diagnosed issue can help you determine whether or not you should invest in the repair.

Costs Associated with Central AC System Repairs

AC System Repair                 Average Repair Cost
Thermostat Replacement                $165
Internal Part Replacements                $100 – $400 per replacement for smaller parts                 
$1,200 – $1,800 for larger parts
Air Duct Replacement                 $970
Air Duct & Vent Cleaning                  $340
Refrigerant Leak Repair & Replenishment                    $400 – $1,600
Full Unit Replacement                  $3,100 – $5,700

When its Worth it: The Resale Advantages of Repairing an AC Unit

As mentioned before, most home repairs are unlikely to result in increased home value. For example, if after an inspection you find that your entire AC unit needs to be replaced for an estimated cost upwards of $4,000, you likely won’t see the value of your house increase by that same amount; you will be lucky if the value of your house increases by $2,000—half your investment on the new unit. Because home repairs often result in low returns, it is commonly advised to sell the house as-is.

In some cases, making a repair to your faulty AC system may be worth your while:

  • If making the repair is simple and low-cost, go for it. If your issue is simply a broken thermostat, or an air duct system that need to be cleaned, the cost to repair is almost always worth the added buyer appeal that comes with having a functioning AC system.
  • If the competition is thick. Are there several other houses for sale in your neighborhood? What is the condition of these other homes? If they all have working AC systems, it might be worth making the repair to yours so that your competition doesn’t blow your home sale out of the water.
  • If your house is in otherwise great condition and you can afford the repair. It would be a shame to find that your house is the ideal new home for a potential buyer, but a dysfunctional AC system turns out to be the single factor inhibiting the sale. When your home is otherwise in great shape, it may be worth the investment to repair the AC system to move it off the market sooner than later.

When the Punch List is Long, Sell Your Home As-Is

When considering the overall condition of your house and the state of Atlanta’s current real estate market, you might find that it is better to forgo the trouble of making a repair to your AC system, and instead sell your home as-is. If your home has additional damages like leaky pipes, holes in the roof, broken windows, dilapidated fencing, or pest problems, you are probably in a better position to sell the house as-is at a reduced price than to tackle the ongoing list of home repairs. Not to mention, many of us simply don’t have the cash upfront to invest in a new AC system, even if it‘s a good idea to do so.

At Arbor View, We Buy Houses in As-Is Condition Fast for Cash

If you’re ready to sell your home, but are worried about how a broken or faulty AC system will affect your home sale, consider selling your home to Arbor View Properties instead. At Arbor View, we buy houses fast for cash, and the condition of your home doesn’t phase us. We’ve seen it all: failing foundations, rotting roofs, pesky pipe problems, and awful AC systems. Houses in disrepair don’t deter us from making you a fair offer. And if you accept, we can close on your home in next-to-no time.

If you need to sell your house fast and want to skip the waiting game that comes with selling on the traditional market, visit our service page for Selling a House with Too Many Repairs, or contact us today at 770-810-5715.

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