bachanon Posted July 18, 2007 Share Posted July 18, 2007 (edited) home repair/flipper programs liberally identify value to repairs and upgrades on older homes. i have a thirty year old home that needs several repairs. if i spend $5,800 on a new ac/heat system, is it worth that much to the value of my home? am i simply solidifying the home's existing value or will it be worth more if the house is sold? is it possible to determine a dollar amount in resale value for this type (or any for that matter) of upgrade/repair?any information will be valuable. thanks, in advance. Edited July 18, 2007 by bachanon Quote Link to comment Share on other sites More sharing options...
musicman Posted July 18, 2007 Share Posted July 18, 2007 home repair/flipper programs liberally identify value to repairs and upgrades on older homes. i have a thirty year old home that needs several repairs. if i spend $5,800 on a new ac/heat system, is it worth that much to the value of my home? am i simply solidifying the home's existing value or will it be worth more if the house is sold? is it possible to determine a dollar amount in resale value for this type (or any for that matter) of upgrade/repair?i agree that many programs do liberally identify value for various improvements. IMO most people agree that having a new unit is better than having an older one on face value alone. ask an a/c person and they may say that the "new" unit is a builder's model and is cheap. in general, having a/c in houston is a requirement. i'll venture to say that most aren't picky as to the a/c unit as long as it cools well. it MAY influence someone if your unit is newer, but i don't think you can say that you can get 5800 more for your house than for the other. i will say that certain upgrades are worth different values to different owners. many focus on kitchens and bathrooms. but if you don't like what they did, then it isn't as valueable to you as a buyer. me for instance, i think prebuilt cabinets are bad, but to others it would make no difference. sorry to cloudy the water even more. Quote Link to comment Share on other sites More sharing options...
RedScare Posted July 18, 2007 Share Posted July 18, 2007 Adding Central AC where I had none before raised the value of my house. Replacing a working central unit, not so much.My question is, why is it costing $5800 to replace an existing unit? Quote Link to comment Share on other sites More sharing options...
TheNiche Posted July 18, 2007 Share Posted July 18, 2007 home repair/flipper programs liberally identify value to repairs and upgrades on older homes. i have a thirty year old home that needs several repairs. if i spend $5,800 on a new ac/heat system, is it worth that much to the value of my home? am i simply solidifying the home's existing value or will it be worth more if the house is sold? is it possible to determine a dollar amount in resale value for this type (or any for that matter) of upgrade/repair?any information will be valuable. thanks, in advance.Kitchens, bathrooms, and curb appeal.Only handle the fundamentals (foundation, roof, A/C, plumbing, electrical, etc.) if there's a problem. Quote Link to comment Share on other sites More sharing options...
jm1fd Posted July 18, 2007 Share Posted July 18, 2007 (edited) home repair/flipper programs liberally identify value to repairs and upgrades on older homes. i have a thirty year old home that needs several repairs. if i spend $5,800 on a new ac/heat system, is it worth that much to the value of my home? am i simply solidifying the home's existing value or will it be worth more if the house is sold? is it possible to determine a dollar amount in resale value for this type (or any for that matter) of upgrade/repair?any information will be valuable. thanks, in advance.It depends on the buyer....to most buyers, A/C is one of those things that's expected to be there. If it isn't then buyers are going to keep looking or subtract some $$.For a picky buyer like me, I would be willing to pay a bit more for a house that has a real nice (multi stage, variable speed, zoned, etc) unit that's been properly installed. If there's some pile of crap hackjob unit there, then I'll deduct for it. Of course most people don't pay it any attention as long as it keeps the house cool. Edited July 18, 2007 by jm1fd Quote Link to comment Share on other sites More sharing options...
mumbles Posted August 4, 2007 Share Posted August 4, 2007 If there is a 10 year old low seer ac unit I'm considering the cost to replace it before I make an offer on the house. If there is a brand new low quality ac unit, Im considering the cost to maintain it. If the unit has been replaced it better be a decent unit, nothing fancy but still good quality and not oversized. No you won't get your full investment back but it may make your home sell faster. Quote Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted August 5, 2007 Share Posted August 5, 2007 If one purchases a Home Warranty from a reputable company such as First American (No interest) however have used them before for personal real estate transactions and clients they will replace with the co-pay the AC unit if it breaks during the first year and as long as you renew coverage.So grab a good used unit, install it, and provide the buyer or yourself a good home warranty and your covered.Scharpe St GuyIf there is a 10 year old low seer ac unit I'm considering the cost to replace it before I make an offer on the house. If there is a brand new low quality ac unit, Im considering the cost to maintain it. If the unit has been replaced it better be a decent unit, nothing fancy but still good quality and not oversized. No you won't get your full investment back but it may make your home sell faster. Quote Link to comment Share on other sites More sharing options...
jm1fd Posted August 5, 2007 Share Posted August 5, 2007 So grab a good used unit, install it, and provide the buyer or yourself a good home warranty and your covered.A used central unit? Are you kidding me? How big of a penny pincher can one possibly be?!!? Most of the cost of a new A/C unit is the installation...not the unit. Quote Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted August 6, 2007 Share Posted August 6, 2007 Nope not kidding one red cent. If you use things like Craigslist you can often find people that just need out of something for a very attractive price. Not everyone purchases the right unit the first time or actually does build on the addition they have talked about for the past x years. If one can find a good unit and has a good HVAC guy like I have one could save quite a bit of money.You calling me cheap? That is just fine because honestly I am but I live a great and wonderful life because of it!!!Regards,Scharpe St GuyA used central unit? Are you kidding me? How big of a penny pincher can one possibly be?!!? Most of the cost of a new A/C unit is the installation...not the unit. Quote Link to comment Share on other sites More sharing options...
mumbles Posted August 16, 2007 Share Posted August 16, 2007 I have a friend who is on her 4th night in a hotel waiting for approval for a new ac from a home warranty company. They told her it may be another 5 days for approval and they only cover up to 1000.00 anyways. Had they told her this first thing monday morning she could have had it repaired and not been wasting money on a hotel. This got me to looking around on the web for info about home warranty companies and I have yet to find one that doesn't have major complaints. Check the ripoff report site for info on First American and others. It's a crime what these companies get away with. Quote Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted August 16, 2007 Share Posted August 16, 2007 Mumbles,Have your friend call his/her realtor and get their help as well. These home warranty companies can be tough to deal with but they don't typiclly want to piss of agents or whole offices by not covering a legitimate item.All the best,Scharpe St Guy Quote Link to comment Share on other sites More sharing options...
mumbles Posted August 16, 2007 Share Posted August 16, 2007 They did give their answer this morning. Not covered due to rust and corrosion. Seems like they could have come up with that Monday after the service guys looked at it. Could have been repaired by now. They now have someone to replace the unit which they will pay 100% on themselves but it can't be done in the pouring rain. More time in the hotel, more wasted money. Quote Link to comment Share on other sites More sharing options...
Scharpe St Guy Posted August 16, 2007 Share Posted August 16, 2007 Mumbles,I again advise your friend to contact the agent, if needed the agent could even have his/her Broker call the Warranty Company and press the case. Warranty companies are funny beasts, if they issued repair orders quickly and efficiently they would lose money or the rates would become so high that few would buy. Standard operating procedure is to deny all claims the first time around, I would say approx 50% of the claims then die and go away, calculate the time/money savings from the Warranty Companies perspective. If the customer keeps calling then they start grinding the claim through the process they have. My advice of a Realtor or broker calling would grease the wheels and most likely get the desired results your friend is seeking, namely an operating HVAC system either repaired or replaced.Good luck,Scharpe St Guy Quote Link to comment Share on other sites More sharing options...
mumbles Posted August 18, 2007 Share Posted August 18, 2007 It was purchased through the mortgage company which has been contacted. I have no problem with the claim being denied, the problem is they took so long to do it. The unit is 18 years old, of course it has rust, they don't cover rust. She should have been told that Mon after they got the contractors report. They do this everyday, it's not a hard decision to make. You don't tell someone they will have an answer in 48 hours and then change it to 5 days. Quote Link to comment Share on other sites More sharing options...
jm1fd Posted August 18, 2007 Share Posted August 18, 2007 It was purchased through the mortgage company which has been contacted. I have no problem with the claim being denied, the problem is they took so long to do it. The unit is 18 years old, of course it has rust, they don't cover rust. She should have been told that Mon after they got the contractors report. They do this everyday, it's not a hard decision to make. You don't tell someone they will have an answer in 48 hours and then change it to 5 days.Did rust cause the actual failure? About the only thing in an A/C system that I could think of that might ordinarily fail due to rust is the drain pan for the evaporator....even then it just causes a water leak not a complete cooling failure. Quote Link to comment Share on other sites More sharing options...
gwilson Posted August 18, 2007 Share Posted August 18, 2007 My rule of thumb is, for every $1,000 spent, is $1,000 spent.There are no guarantees. Quote Link to comment Share on other sites More sharing options...
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