If you’re planning to sell your house in the future, you may want to make some changes in order to increase its value, helping it sell faster. You may want to decide what projects should you pick like repairs around the house or may think about replacing your furnace. Do you want to know if replacing your furnace before selling a house could make financial sense? Let’s find out if a new furnace is one of the projects that you should tackle and eventually can influence home-buying decisions.
Determine the condition of your furnace.
For every potential homeowner, they will expect that the furnace should be working in good condition. Ideally, a furnace should last about 15 to 20 years. However, there are factors that may reduce or prolong its lifespan. Being the original owner of the house, if you have properly maintained your furnace since day 1, chances are, it will most likely last longer. To maintain its efficiency, you need to thoroughly inspect for any issues. If you smell anything funny, observe that it has trouble starting up or your house doesn’t seem to heat up as it used to be and if you’re hearing noises that you don’t usually hear before. If you don’t see, smell, or hear these warning signs it doesn’t mean that it is in good shape. Calling a professional that can inspect and perform all the routinary maintenance is one good idea for you to determine the exact condition of your furnace.
You have a choice to not replace your furnace if it is working correctly, regardless of its age. Most offers to purchase real estate are always subjected to a whole house inspection, and the furnace is obviously included and will likely be a part of the inspection. So, furnaces are required to be in proper working order. If the potential buyer is concerned about the age or condition of the units, one option is to purchase a home warranty by either the buyer or the seller. A home warranty will cover all the major mechanicals for twelve months and this is possible if you as the seller have a contract for maintenance that was agreed upon with a local HVAC company.
Should I Buy a New Furnace Before Selling My House?
If you want to sell your house quickly, buying a new furnace to replace the old one is also a good option because a new furnace is attractive to buyers. Moreover, house inspection with an old furnace may result in a problem even for a minor one, and that being said, the buyer may use this as a reason to negotiate for a lower price.
Having your furnace replaced with a new one adds a few selling points that will help give your home an advantage to be noticed over others in the area. Though it may not be automatically equivalent to a higher asking price, it attracts more buyers and this may speed up the sale.
A new furnace will also assure the buyer that it will be hassle-free for a number of years and will pass house inspection. Since the system is new, buyers will not have a chance to negotiate for a lower price.
Your home will be more energy-efficient. Some new furnaces have energy-saving properties that can attract buyers especially millennials because they are particularly drawn to smart technology. Homebuyers’ top priority is energy-efficient homes because less cost to heat means more money in their pockets allowing them to qualify for more homes. Additionally, if you replace your furnace, it may qualify for an energy-efficient mortgage (EEM) especially if your home has thermal-rated windows, is well insulated and airtight.
Though replacing your furnace into a new one has its advantages, there are also downsides to it. Even if you have a new furnace, it will not guarantee you a 100 percent return on your investment. The return on your investment is affected by a number of factors: the real estate market, the amount you spend on a unit, and the expectations of your buyers in your area. Plus, spending money for other repairs in the house may be better because home improvements equate to a 100 percent return when selling homes.
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