How does the age of house systems (roof, HVAC, etc.) affect the price you offer?
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Anonymous
| Let's assume a 2500 sq. ft. $600K house built in 1990 in the suburbs like West Springfield area so not super hot like Arlington or DC. From my end, I don't expect everything to be brand new but I also don't expect to be shelling out $10-$15K for a new roof or HVAC my first year or two in the house. My thought was, assuming the house was priced equal to comps, to deduct half the cost of replacing the item from the purchase price so it's like I'm buying a house with an HVAC that's 10 years old. Does that seem reasonable? How much does the age of these items sway your decision when deciding on a price to offer? Also, I'm not talking about the smaller dollar items like appliances, I mean the primary systems in the house. Thanks! |
Anonymous
| Use comps to guide your decision. A new roof and HVAC will set you back <30K. |
Anonymous
|
If it's within ~1-3 years of expected useful life I'd want to deduct a good chunk of the repair/replacement costs.
In a seller's market, however ... Your approach sounds reasonable. It may or may not work in a given situation. |
Anonymous
|
I think it's certainly worth asking the seller for these costs, but in this market, you may or may not get them.
I would definitely ask for a home warranty, perhaps more than one year's worth. No reason you can't ask for cash that is equivalent to two or three years of warranty renewals. When I have sold houses in the past, my attitude has been, if it works, I'm not giving you money for it. I never had a buyer walk over this. |
Anonymous
| A new HVAC system would be $4k to 8k. |
Anonymous
My parents just replaced theirs and the furnace + 2 compressors (dual zone) was like $20K installed. I think they bought a higher efficiency Tran unit. |
Anonymous
|
Not likely to get the deduction in West Springfield, unless it is one of the smaller split foyer houses.
With that price I would assume it is one of the colonials. |
Anonymous
Sounds like they overpaid. I did the HVAC last spring, 2 compressors, dual zones for $13k. I used Carrier products not Tran, but that shouldn't make that much of a difference. |
Anonymous
| Problem is, nobody can predict when a major system is going to bust. The stuff you think will break, won't; and the stuff you think is fine, will. Our AC was ancient when we moved in. 7 years later...still ancient, and still working great. Everything else in our house has been replaced, so when we sell does someone get to discount the price even though everything's working well now? I hope not. If it's a roof that's already leaking, or something, that could warrant some negotiation. |
Anonymous
| My HVAC system is 19! Years old and still running strong. I got a quote to replace it, including a crane etc. $5k. 1600SF home. |
Anonymous
Yup, that's what we paid for a new furnace. Central air conditioning units are about $6000 to 10,000 each. However, just because a system is old, most sellers won't give you any break if it is still in working order, because actual useful life varies. same with the roof-- condition matters more than age, but think age tends to be a better prediction of condition than with HVAC> |
Anonymous
Could be. They got a 98% efficient one, I know that added a little to the cost. They also got one of those electromagnetic air filter things too. |
Anonymous
| OP here, thanks for the thoughts. Makes sense on the HVAC, still not sure on the roof. I mean, the only way you know the roof needs to be replaced other than age is when it leaks and by that point you've already got some damage no? |
Anonymous
| What about a home warranty? |
Anonymous
| get a home warranty. seller pays for it the first year. we've lived in our home for about 3.5 years and have had to replace both heat pump, AC and HVAC (2 separate systems) as well as several other things. has more than paid for itself every year we've had it. if you're buying a home with older systems, its well worth it. |