Does adding Central Air to a home add significant value?

7 Replies

So I've been looking at some homes in my area, they are all older homes over 100 years old. I was wondering how do you determine if a renovation is going to add any significant value to a home? For example a lot of the homes I was looking at have Window A/C units, if you add central air does that add any significant value?

For resale in a B - A class single family residential neighborhood, definitely. 

If most of the surrounding homes have window units, there is most likely a reason for it. Are they all rentals? If so, I wouldn't think central air would add much value to a home. Appraisers look at GRM

Someone with more knowledge might chime in and correct me if I'm wrong though.

In west coast 10-15 miles away, the difference between a new central a/c vs window or fans is about 60-80 cents on a dollar.  It can be a deal breaker if you purchase during summer.

Very limited ROI. In this day and age, central AC is considered a commodity item. And will most probably add to your tenant's utility cost since most of them aren't very smart when it comes to efficiently run an AC. However, check with your local electric company, water company, and city and county. Some of them have excellent incentive/rebate programs on insulation, water conservation, ACs, etc.

It will add value for sure but doubt you will be able to make profit on adding it. You will more than likely make your money back but I would not count it as a profit increasing expense like adding a bathroom would be. 

Also in those older home you should really be careful on how you lay it out. You could end up with some bulkheads in horrible locations if you just let teh AC guys do what they want.

Thanks everyone for the information. Most of the surrounding properties have window units and there are a lot of rentals. So sounds like it probably isn't going to add as much value as I'd hope for.