Central Air's Impact on Value

[youstaycool]

Hi there. Can someone help me understand what effect central air/heat has on home values?

Specifically, if Houses A and B (1,500 sq foot houses in a hot, humid client) are equivalent in every detail except House A has central air/heat and House B does not, roughly how much more would House A be appraised relative to House B (either in absolute $ or relative % terms)?

Thanks.

 

[Hall McClenahan]

Welcome

Thanks for coming here and giving us a chance to answer your question.

While you are looking for a set number it does not exist.

In the areas I work in it varies from 1/3 of cost to 2 times the cost, depending on what the typical market participant expects.

In older homes, found in lower income locations, it was not original, therefore not required for the property to fill the buyers need.

If you went to an upper-scale planned subdivision and looked at a home built without it, the question of what else did the builder cut or leave out would arise. Public appeal and trust are damaged. Typically an over cost to install reaction is noted.

Sorry I was unable to give you a more specific answer.

 

[Scott R Marshall]

The best advice would be from an appraiser in your immediate area. Any other advice would be purely speculation without knowledge of the market area. As the previous poster said, there is no set amount and it can vary widely.

 

[The Dog]

Welcome,

The only answer you should receive here is depends, unless it comes from an appraiser familiar with your area.

In my area, it adds considerably in older homes, as much as the replacement cost. In newer homes it is a market requirement to be competitive. Newer homes without are simply cutting corners, or at least giving that impression to the market and are having a hard time competing.

 

[Walter Kirk]

There is no fixed number or percentage. An appraiser would determine the value (if any) by comparing historical sales of properties with and without central air.

 

[Vegan702]

Like they said above. In my area I haven't found any significant value for air vs. no air as our temps rarely get above 95 and our humidity is low. Most have put in whole house fans or swamp coolers except in the newest homes where the builders have been putting in a/c.

 

[Lawrence R.]

In my market, central is important, but smaller houses with adequte window units may hold thier own.

No new hosues that I am aware of are being built without them, so it may affect them tremendously as they would be inadequte without one.

Hot as 40 hells here most of the time with 90% plus humidity.

but the winters are nice....

If i were investing in a house, I would decrease my offer by the cost to install central and hope they would take it. Then I would install the Central and ask for top dollar.

 

[Mike Boyd]

In newer homes---10 years or less, central air can be added to the existing forced air furnace, most of the time. In my market, I add $2,000 to $3,000 depending on the size of the house. If the heating is not forced air with ducting, I might add $5,000 to $7,500 depending on size.