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Ram V.
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Whats the real cost to install HVAC

Ram V.
Posted May 1 2019, 23:17

Trying to figure out the “real” cost of installing a new central AC unit and replace existing old furnace.

This is in San Jose, CA

Home is 1600 sq ft - 2 story

Got quotes that range from 8.5k to 15k

I guess the need is a 3.5 ton compressor and a 2 stage energy efficient furnace. Doesn’t sound too complicated. All ducts and electrical are in place

My budget is around 6k

Please help me get an idea of cost, best brands or share referrals for HVAC contractors.

A bit of research shows that the equipment needed including compressor, furnace, tubes, etc comes to around 3k. So why do theses HVAC contractors charging more than 8k for parts and installation?

Am I missing something ?

Thanks in advance

Account Closed
  • Rental Property Investor
  • Orlando, FL
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Account Closed
  • Rental Property Investor
  • Orlando, FL
Replied May 2 2019, 01:14

I received several quotes when I replaced my HVAC ranging from $3,800 to $6,500. This was for an 1,900 sqft. duplex in Florida. Each side is ~850 sqft.

I did research figured out they were quoting me for up to 4 tons (for a single side) -- which was overkill for my property. Just make sure you get a reputable HVAC tech for the work. If possible, ensure they honor the warranty to come back and fix any issues. If you don't have an HVAC tech, try asking your agent or PM. Otherwise, you can try Yelp and sites like HomeAdvisor to find local contractors.

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Max T.
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  • Philadelphia, PA
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Max T.
  • Investor
  • Philadelphia, PA
Replied May 2 2019, 03:18

I would keep looking for more quotes. The equipment is usually more than the labor for HVAC, especially if your duct work is already in place.

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Matthew Paul#2 Contractors Contributor
  • Severna Park, MD
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Matthew Paul#2 Contractors Contributor
  • Severna Park, MD
Replied May 2 2019, 04:02

@Ram V. It doesnt matter how much the equipment costs the contractor . Its what the market will bear . There are lots of rules , regulations ,permits ,warranty , certifications to be a HVAC contractor , plus labor costs are high as are the costs of running a business . Plus that pesky thing called profit . 

But as a rule of thumb , material cost times 3 . So if the retail costs of materials are $3000 , its a $9000 install . If everyone is busy you will pay more . 

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Ram V.
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Ram V.
Replied May 2 2019, 07:45

@Jovon Itwaru

That’s a great price. Wish I could get someone here for that price

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Ram V.
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Ram V.
Replied May 2 2019, 07:46

@Max T.

That’s exactly what I’m doing. No luck so far

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Ram V.
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Ram V.
Replied May 2 2019, 07:49

@Matthew Paul

I support you demand and supply theory. I generally calculate labor as material times 2. In this case, 3000. *2= 6000. Guess I should change that.

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Ram V.
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Ram V.
Replied May 2 2019, 07:51

@Ram V.

Any experts from SF Bay Area? Have you done HVAC install recently? Pls share your cost.

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Kenneth Bullock
  • Specialist
  • Los Angeles, CA
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Kenneth Bullock
  • Specialist
  • Los Angeles, CA
Replied May 2 2019, 09:36

If you’re looking for “Good & Cheap”, that’s exactly what you’re going to get. 

Unfortunately, the costs of doing business in California, is higher than many other states. Contractors have overhead. 

My advise would be to stay away from the big name companies with real pretty trucks and four page fancy letterhead proposals. Look for the contractor that is an owner/installer and doesn’t have thirty + employees, a fleet of trucks and a building to take care of. 

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Brian Spohr
  • Real Estate Broker
  • San Jose, CA
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Brian Spohr
  • Real Estate Broker
  • San Jose, CA
Replied May 2 2019, 21:32

I just saw a quote for $10k for a 1,500 sf, two-story townhome in San Jose. It was actually $15k with a furnace. Hope that helps. 

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Replied May 2 2019, 22:39

@Ram V.

I do Hvac for a living, usually the bigger the company the more they will charge , take into account equipment brand , the size of the condenser seems about right for the square footage of your home , usually 2 stage furnaces are more expensive I would go with single stage you won’t be saving that much money anyway , ballpark pricing on the equipment would be 1400 for condenser 400 for coil and around 800 for a single stage furnace , that’s cost remember contractors raise the price of the equipment and of course you gotta pay somebody to install it right . Hope this helps

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Kenneth Garrett
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Kenneth Garrett
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Replied May 2 2019, 23:17

@Ram V.

I just replaced my furnace with a high efficiency and central air unit and a new coil.  Approximately the same square footage cost was $6500.  

Good Luck.

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Ram V.
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Ram V.
Replied May 2 2019, 23:45

@Kenneth Garrett

Which city?

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Kenneth Garrett
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Kenneth Garrett
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Replied May 3 2019, 03:38

@Ram V.

Illinois just outside Chicago.  I’m sure cost are much less here then California.

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Ram V.
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Ram V.
Replied May 3 2019, 07:17

@Kenneth Garrett

Yes, you are right. Cost are very high in California

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Amit M.
  • Rental Property Investor
  • San Francisco, CA
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Amit M.
  • Rental Property Investor
  • San Francisco, CA
Replied May 3 2019, 16:30

We always get reamed in the Bay Area for any contractor work. I used to be able to replace a simple 40 gal water heater (parts and labor) for ~ $500. Now? Mofo’s wants $1200!

I’d keep checking around, but don’t be tempted to have it done by someone that doesn’t know what they are doing. It’s a PITA process, but you’ll get a feel for what a decent “low” price is from a qualified contractor, and you’ll need to accept that. Another alternative it to try to find someone in the Central Valley or south of Gilroy. They may still be operating on non Palo Alto/Atherton price points ;)

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Ram V.
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Ram V.
Replied May 3 2019, 18:58

@Amit M.

Well said

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Jill F.
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Jill F.
  • Investor
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Replied May 3 2019, 19:18

I just had a 1300 sq ft one bedroom 80% furnace/central air unit replaced it was $3400 installed (included up charge for using credit card).

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Amit M.
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Amit M.
  • Rental Property Investor
  • San Francisco, CA
Replied May 4 2019, 09:59

^ shoot, maybe it’s worth flying out Jill’s contractor and putting him up in motel 6 for a couple of days to get a similar price ;)

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Matthew Shaw
  • Contractor
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Matthew Shaw
  • Contractor
  • Austin, TX
Replied May 8 2019, 11:07

Moving down to a single stage furnace will save a few $, but not much. Furnaces are never the expensive components in California. Unfortunately, for quality, permitted work in our great state, $8.5k seems reasonable. As a licensed contractor in AZ and CA, I can tell you that CA is much more expensive than pretty much every other state. 

As previously mentioned, stay away from the companies with big advertisements and huge staffs. Most importantly, make sure you whoever you use is licensed and pulls permits. I cant tell you the number of times I've had customers spend thousands to fix what some other "low ball" company installed.

"Good work aint cheap, cheap work aint good." But there is a happy medium.