Are you looking to install a heat pump and you are unsure whether it adds value to your home? Well, homeowners looking for ways of increasing their value, and one of them is by improving their heating system. But does a heat pump add value to your house? Is it worth the investment if you are trying to sell your home?
In this guide we’ll analyze the impact that a heat pump could have on the final price of your property, and how much value can it really add.
Does a heat pump increase the value of your house?
There is no doubt that a heat pump or any new heating system in your home will increase its value. The future buyer will be willing to pay a higher price for the house, knowing that a new heating system has been installed, or that the old one has been upgraded. The value that you are able to add to your house will directly depend on a few factors.
How much will a heat pump increase the value of a house?
There is no doubt that a heat pump will increase the value of your home, but to determine how much that increase will be we need to establish the value of a heat pump.
What is the value of a heat pump?
The value of a heat pump depends on a few different factors that need to be considered:
Type of heat pump
The type of heat pump you have installed will certainly be one of the most impactful factors when determining how much a heat pump can increase the value of your home.
The most common type of heat pump is the air-source, and these usually cost from $3,000 to $10,000 depending on its size, and the company that installs it.
Gas-source heat pumps are slightly more expensive to acquire the unit, and also to install. So these usually run between $5,000 and $12,000
Water-source heat pumps can run anywhere between $2,000 and $8,000 depending on their size.
Lastly, geothermal heat pumps are by far the most expensive type. While the price of the unit is fairly similar to the other types, the installation requires a lot of work, and it can cost anywhere between $10,000 and $30,000, depending on your outdoor area. The unit itself usually goes for $3,000 to $6,000, which is fairly cheap in comparison.
Due to the installation cost, and the fact that geothermal heat pumps last longer, up to 25 years, they are certainly the type of heat pump that will add the most value to your home.
Price and size of the heat pump
When it comes to heat pumps, price and size go hand in hand. The larger the heat pump, the more it will usually cost. While the most well-known brands usually have different models, they tend to be slightly different.
If you have a larger and more expensive heat pump model, that will definitely add more value to your home. A smaller and cheaper model might not add a lot of value. You should also consider whether the heat pump has the right size for the area of your home, as buyers will be analyzing that as well.
While it may seem like an insignificant factor, the area where your property is located can impact the value a heat pump will add to your home. Warmer areas will not really appreciate a heat pump in the same way, while they are still able to produce cold.
Another thing to consider is whether the houses in your area have heat pumps or not. An area where most of the properties do not have a heat pump will make your property stand out for a good reason, and you might be able to recoup a larger percentage of the heat pump cost. Additionally, if all the properties in your area have heat pumps, not having it will make your property stand out for all the wrong reasons, and could hurt your final sale price.
How old is the heat pump?
While a heat pump can last for up to two decades, it is important to consider how old your heat pump is. This will directly affect its value because the future homeowner will also be looking a the future cost of replacing the system.
An older heat pump model will also require more maintenance and care, and this needs to be considered. Moreover, the newest heat pump units are more efficient than the older ones, which makes them more valuable.
Finally, if the heat pump is still covered by the warranty that will add even more value to it.
How much of the value of a heat pump will you recoup when you sell your house?
Depending on all the factors mentioned earlier as well as the buyer, you can expect to recoup around 50% of the cost of your heat pump if it is under 5 years old. However, older systems may only allow you to recoup 20% of the value.
When it comes to geothermal heat pumps, some buyers might not even be aware of the importance of having such a system, and you may have to ask the real estate agent to explain to them the importance of a ground source heat pump.
Is a heat pump a good investment?
A heat pump is a terrific investment if you are looking for ways to improve the energy efficiency of your home, while also helping the environment. Additionally, it will also add value to your property, which you can recoup if you decide to sell it later. Considering all of the heating systems available today, heat pumps are extremely efficient, while also helping you save money in the long term.
They also last a long time, and with proper care and maintenance, they should not have any problems during their life span.