So today we're going to answer the question. If I've got a new roof, a new HVAC, or some other major mechanical item(s) that I’ve recently replaced on my home, what is the value that I get from that when I go to sell my home.
Value of Replacing Items
When I meet with sellers and they have replaced a large mechanical item like a HVAC, hot water heater, replaced the roof, etc, one of the questions they ask me is how much value they can get for replacing that new item when they sell their home. A lot of times they are under the impression that they can mark up the price of the home and charge the new buyer the same or close to the same cost of what they paid for that item, so that’s one of the things we have do discuss.
I educate my clients on this topic and tell them that we may be able to get a little bit more value than if we had not replaced those items, but what you have to remember is a working AC unit and insurable roof, or a working hot water heater, etc are things that buyers expect will be part of the home they purchase.
So while they're going to be grateful that yes it's a new AC unit that has recently been replaced and it’s not 20 years old, they aren't going to give us the same amount of value to pay for it.
We will get more value than if the home didn't have that or if we're comparing ourselves to a home where they haven't replaced those items, but generally speaking it's not going to be nearly as much as what you’ve just paid to replace those items.
It's very similar to when you trade in a car. If the car you are trading in has air conditioning and the AC went out and you replaced it and then tried to trade in the car, the dealership is not going to give you a whole lot more for the trade in just because you replaced it because they expect it to be in working condition. They would take away from the price if that item is broken when you went to trade it in.
I understand it's painful. That's one of the reasons it's important to sell before some of those things go out and/or not to overpay to replace items in your home if you are thinking about selling. Rest assured, we will let any potential buyers know about the repairs you have made.
Invoices & Warranties
If you have replaced items recently, it's helpful if you have your invoice and warranties so we can provide that to the buyer for reference and there will be some value there.
Inspection & Repair Negotiations
Replacing major items before selling will It usually help you when the inspection period and repair negotiations take place because at least you know that there aren't going to be as many surprises there because you have already addressed those items.
So I hope that helps answer your question on if you replace some major mechanical items to the home, what kind of value it brings when you sell your home.
Check out my post What is the Value of a Pool When I Sell My Home?