A/C is old and broken, but about to sell house

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A/C is old and broken, but about to sell house

Grant LovellPro Member
Member since 2020 · 5 posts · 1 vote

Hello,

I have a house where the A/C has gone bad. The unit is also almost 20 years old. I have a quote to fix it for $3,500. I am also planning on selling the house later this year. Do you think it is worth it to go ahead and get the unit replaced, or will I not be able to recoup that money in the sale of the home?

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Jeremy Diaz
Developer · Wayne, USA · Member since 2021 · 9 posts · 4 votes
3y

Hey Grant,

I think you should fix it for sure. HVAC is a huge selling factor 👍🏻

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  • Jeremy Diaz
    Developer · Wayne, USA · Member since 2021 · 9 posts · 4 votes
    3y

    Hey Grant,

    I think you should fix it for sure. HVAC is a huge selling factor 👍🏻

    1Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Grant Lovell:

    Hello,

    I have a house where the A/C has gone bad. The unit is also almost 20 years old. I have a quote to fix it for $3,500. I am also planning on selling the house later this year. Do you think it is worth it to go ahead and get the unit replaced, or will I not be able to recoup that money in the sale of the home?

    First, you didn't say what part is broken. I had an HVAC guy tell me I needed to replace the unit but a differnt HVAC guy replaced the capacitor for $85 and it runs very nicely. A lot of the places I buy have 20 plus year old HAVC units and usually with a couple of hundred bucks they are up and running just fine. None of the fixes I've need are anywhere near $3,500. That's almost enough to simlpy put a new one in.

    If it's the condenser, that can sometimes be easily fixed. 
    If you are low on coolant, it probably just needs to be filled up.

    Sometimes plumbers know enough about HVAC systems that getting a plumber to take a look at it is worth doing. Since they don't sell HVAC units, they can be more forthcoming.


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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    $3,500 is INSANE cheap if it’s a complete new system, take the deal and run. You will take at least a $5k hit selling with a bad ac unit. You might get an extra $1-2k if you list with new ac unit this year. So it will “pay for itself”. 

    0Reply
  • Grant LovellPro Member
    OP
    Member since 2020 · 5 posts · 1 vote
    3y
    Quote from @Account Closed:
    Quote from @Grant Lovell:

    Hello,

    I have a house where the A/C has gone bad. The unit is also almost 20 years old. I have a quote to fix it for $3,500. I am also planning on selling the house later this year. Do you think it is worth it to go ahead and get the unit replaced, or will I not be able to recoup that money in the sale of the home?

    First, you didn't say what part is broken. I had an HVAC guy tell me I needed to replace the unit but a differnt HVAC guy replaced the capacitor for $85 and it runs very nicely. A lot of the places I buy have 20 plus year old HAVC units and usually with a couple of hundred bucks they are up and running just fine. None of the fixes I've need are anywhere near $3,500. That's almost enough to simlpy put a new one in.

    If it's the condenser, that can sometimes be easily fixed. 
    If you are low on coolant, it probably just needs to be filled up.

    Sometimes plumbers know enough about HVAC systems that getting a plumber to take a look at it is worth doing. Since they don't sell HVAC units, they can be more forthcoming.



     The $3,500 would be to put in a new compressor. I am looking at $8,100 to replace the entire unit. Does that sound about right?

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  • Grant LovellPro Member
    OP
    Member since 2020 · 5 posts · 1 vote
    3y
    Quote from @Bill B.:

    $3,500 is INSANE cheap if it’s a complete new system, take the deal and run. You will take at least a $5k hit selling with a bad ac unit. You might get an extra $1-2k if you list with new ac unit this year. So it will “pay for itself”. 


    The $3,500 would be to put in a new compressor. I am looking at $8,100 to replace the entire unit. Do you think it still makes sense to replace the entire unit? Thanks
    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Your buyers, once you put it on the market are going to request that unit be replaced. Especially in this market. You either do it now, or later.

    1Reply
  • Ray Hage
    Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y
    Quote from @Grant Lovell:

    Hello,

    I have a house where the A/C has gone bad. The unit is also almost 20 years old. I have a quote to fix it for $3,500. I am also planning on selling the house later this year. Do you think it is worth it to go ahead and get the unit replaced, or will I not be able to recoup that money in the sale of the home?


    It will be better to replace it before selling. 20 years old is damn old. I would shop it around and see if you get a new unit for a reasonable price. It will be tough to close on a loan on a house with no AC so you will either have to fix it or go with a cash buyer, thereby limiting your options on selling.

    0Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y
    Quote from @Grant Lovell:

    Hello,

    I have a house where the A/C has gone bad. The unit is also almost 20 years old. I have a quote to fix it for $3,500. I am also planning on selling the house later this year. Do you think it is worth it to go ahead and get the unit replaced, or will I not be able to recoup that money in the sale of the home?


     The age of the unit is going to come up in the inspection, and something along the lines of "the unit is reaching the end of it's serviceable life"

    If it's not working at all by the time of listing, that's an even bigger problem.

    If you want to just fix it, get another tech to come out and look at it. How many times I've had someone tell me a unit can't be fixed and must be replaced....then had it fixed the next day for $200 and it continues to work just fine. 

    If it's truly a 3.5k fix, then I'd replace it. You can run fine with the repair, but the inspector is still going to note that it's reaching the end of its serviceable life. 

    0Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Grant Lovell:
    Quote from @Bill B.:

    $3,500 is INSANE cheap if it’s a complete new system, take the deal and run. You will take at least a $5k hit selling with a bad ac unit. You might get an extra $1-2k if you list with new ac unit this year. So it will “pay for itself”. 


    The $3,500 would be to put in a new compressor. I am looking at $8,100 to replace the entire unit. Do you think it still makes sense to replace the entire unit? Thanks

    I had a brand new unit installed on emergency over a long weekend on a 2,353 sq ft house in Sun City (next to Phoenix) and it was $4550 total including needing a crain to get it onto the roof. 



    If you are perched on the side of a cliff or putting it on a second story or have 4,000 sq ft maybe it's that much more.

    Have you gotten 3 quotes?

    0Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    I wouldn’t spend $3500 fixing a 20 year old unit. Check with local ac repair guys who aren’t the big 3 or big 5 in your market. I would be willing to bet the quote you got is to replace the entire system because they’re going to switch freon types. A small guy should be willing to replace just the condenser “the outside unit”. Then they will suck out the old freon type, clean out the system and install the new system with new freon type. 

    When I look at new systems in vegas the cheap quote is usually $8k, the expensive one is $11k through the property manager. Lowes/Home Depot will come in around $13-$15k. My “guy with truck” does them for about ($1700 for the unit, I pay the wholesaler with a credit card, so no tax no markup) and $2,500 for labor, freon, etc..) call it $4,200. There may be some extra risk I’m sure according to people charging $10k. But he’s done more than 10 units over the last 5 years and I’ve had zero problems. 

    0Reply
  • Ryan KellyBusiness Member
    Real Estate Broker · Austin, TX · Member since 2018 · 1k+ posts · 1k+ votes
    3y

    @Grant Lovell think of it as a marketing expense. Instead of crossing your fingers and hoping buyers won’t discount your home due to an old HVAC (which they will), you can now advertise a NEW HVAC in the property, which is a nice plus for buyers. I always believe properties should have at least one new upgrade when they sell to entice buyers.

    Some things add value to a home (kitchen remodel, bathroom remodel, new deck, etc), while other improvements preserve your value from being discounted (new roof, HVAC, water heater, etc). If you try to sell with a bad HVAC, buyers will ask themselves “what other deferred maintenance has the seller not addressed?” and start reducing your price by default.

    [email protected]512-674-5478
    Ryan Kelly Group - Keller Williams5110 Reviews
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  • Michael Robbins
    Property Manager · Henderson, NV · Member since 2018 · 501 posts · 317 votes
    3y

    If you are planning to sell very soon then I would go for the fix over the replacement.  Make certain to disclose the recent repair on your seller disclosure forms.  Let buyers decide how much they value a new AC or not in their offer price.  

    0Reply
  • Grant LovellPro Member
    OP
    Member since 2020 · 5 posts · 1 vote
    3y
    Quote from @Account Closed:
    Quote from @Grant Lovell:
    Quote from @Bill B.:

    $3,500 is INSANE cheap if it’s a complete new system, take the deal and run. You will take at least a $5k hit selling with a bad ac unit. You might get an extra $1-2k if you list with new ac unit this year. So it will “pay for itself”. 


    The $3,500 would be to put in a new compressor. I am looking at $8,100 to replace the entire unit. Do you think it still makes sense to replace the entire unit? Thanks

    I had a brand new unit installed on emergency over a long weekend on a 2,353 sq ft house in Sun City (next to Phoenix) and it was $4550 total including needing a crain to get it onto the roof. 



    If you are perched on the side of a cliff or putting it on a second story or have 4,000 sq ft maybe it's that much more.

    Have you gotten 3 quotes?


     Yes, I have gotten 3 quotes. The house is in Florida in a pretty normal neighborhood, and the unit sits beside the house. The house is almost 5,000 sq ft, but this A/C unit is just for half of the house. Your price is so much better than everything I have been getting here!

    0Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Grant Lovell:
    Quote from @Account Closed:
    Quote from @Grant Lovell:
    Quote from @Bill B.:

    $3,500 is INSANE cheap if it’s a complete new system, take the deal and run. You will take at least a $5k hit selling with a bad ac unit. You might get an extra $1-2k if you list with new ac unit this year. So it will “pay for itself”. 


    The $3,500 would be to put in a new compressor. I am looking at $8,100 to replace the entire unit. Do you think it still makes sense to replace the entire unit? Thanks

    I had a brand new unit installed on emergency over a long weekend on a 2,353 sq ft house in Sun City (next to Phoenix) and it was $4550 total including needing a crain to get it onto the roof. 



    If you are perched on the side of a cliff or putting it on a second story or have 4,000 sq ft maybe it's that much more.

    Have you gotten 3 quotes?


     Yes, I have gotten 3 quotes. The house is in Florida in a pretty normal neighborhood, and the unit sits beside the house. The house is almost 5,000 sq ft, but this A/C unit is just for half of the house. Your price is so much better than everything I have been getting here!

    Well, I'll hitch up the horse and wagon and bring one over. Might take a month to get there, ol Bessy isn't as young as she used to be and makes 'bout 2 miles an hour.

    More seriously, I'd for sure like to know why the huge price differences, but I guess it's what the market demands. I wish you well.
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