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New Furnaces Increase Home Value
Considering buying a new heater, but not sure you are going to stay in your house? Anytime you are thinking about a home improvement and are in a home that might not be your “forever home,” you have to weigh the cost of the improvement against any potential increase in home value. New furnaces can increase home value and are one of the home improvements that tends to pay off for homeowners.
First, what is the condition of your current furnace? If you have taken good care of your furnace, it could last for 25 years or longer. The longevity depends on the quality of the system, whether it is natural gas, propane, oil, or electric, and general maintenance. However, furnaces generally have long life spans. If you have a working heater that is less than 10 years old, buying a new heater is probably not going to increase your resale value.
If you are getting to the end of your furnace’s life, then buying a new heater can make sense. First, you will enjoy it while you are living in the house. You will have a more reliable heating system, which is not just a bonus, but a necessity when you live in a place with cold winters. You should also save money. Today’s furnaces are significantly more energy efficient than models that were installed 20 or more years ago. You could see dramatic costs savings with a new system. Those systems are only going to increase if fuel prices continue to rise.
Very few home improvements are “full contribution” upgrades. Those types of upgrades are ones where the value of your home increases by the value of the upgrade. What qualifies as a full contribution upgrade can be very regional. Partial contribution upgrades mean you can recoup some of the cost of the upgrade when you sell the home. Other items are considered maintenance items. They do not necessarily increase the value of the home but could impact your ability to sell and the resale value.
A new furnace is considered a maintenance item. While you may not get to list your house at a higher price because of a new furnace, having a non-working furnace can result in a lower price once you have finished negotiations. It can also mean your house sits on the market for a longer period of time. In today’s booming housing market, that may not seem like a serious worry. However, we all know that housing markets have boom and bust cycles. When the market begins to decline, days on the market will once again be an important thing to consider.