Thanks! What a terrific overview! I really appreciate it.

Tiger said "You can not recover that cost at time of resale. "
I believe that is a fact. I also agree that your decission should be made based on how long you will own the house.
Assuming you plan selling in 2015,I suggest keeping the old system. Buyers ALLWAYS want to pay less than asking so include the customary coushion plus the price of a new system when you list the house. Chances are the buyer will hire an inspector so get out ahead and have the system serviced and inspected before the listing. Ask for a checklist report and include it with listing documents. Otherwise the buyer's inspector will reccomend having it inspected by a hvac company which implys he saw problems. If the buyer makes age of system an issue,you have the cost built into the asking price.

Agreed. You would never get your full amount out of replacing the unit. The age of the unit will come out in inspection and it will be very helpful for you to have a written quote for replacement. Offer half of the replacement cost if you need to in order to do the deal. The fact that it's working is in your favor.

As a homebuyer - I would much rather select and install the unit than have the seller select a low-end unit just to get it sold. A cash incentive is much more attractive to me.

As to the glut of homes... that's very different based on your location. In my area it's just the opposite... so don't believe what someone said unless they are in the business and would know.

You might want to go ahead and get some quotes, because your system may decide on its own it's time to stop working. It is much easier to get it replaced when it's optional vs. when it fails and it's either freezing or a heat wave. Don't ask me how I know this! You might be able to get a pretty good deal and have peace of mind your system won't fail with the next heat wave.

Purchasing new systems is generally better in Spring and Fall, not Summer or Winter...

I agree about having a new system installed in a breakdown situation, less about money and more about scheduling.

TD

If you do keep your present unit and its age becomes an issue to a would-be buyer, I would NOT share any estimates with that buyer - it would send the message that you knew ahead of time that it might become an issue. allow the interested party to select a dealer and get a quote. (If it is out-of-line high you can dust off the "old" quote and ask that it be re-submitted to you.)

YMMV

A 40+ yr old system could be an issue, really?...

"A 40+ yr old system could be an issue, really?..."

Well, by handing over a pre-staged estimate to replace the furnace the seller really confirms that it is.... might even suggest that the seller, knowing of the problem, has padded the price.

Really? lol

I can see where giving them the estimate from the get-go might make them think we expect it to die any day. I do like the idea of getting one and then just holding on to it. We'll call our Lennox dealer who's done the work in the past, and get it serviced and get something from them on what's been done since we've owned the house. I do think that will be quite helpful. I do know ours is not efficient. Several years ago (7 or so) we did get several estimates to replace it, but we just never needed to. When we bought our house we did get a home warranty, expecting it to die. Obviously, it didn't. Every spring and fall when we turn it on, I'm somewhat surprised it's still working. We have an attic fan, so we don't have to use it until it's staying over 80 or dipping under 40.

Don't kid yourself. A 40+ yr old system could die any day. You have been on borrowed time for over 20 yrs and clearly are the exception, not the rule.

TD

Well, obviously. Hence my surprise when we turn it on and it works. Although our neighbors, who have lived in their house 42 years, still have the original furnace too. (Same builder.) They did replace their AC in the last 10 years. It's crazy it still works. Apparently, 40 years ago, Lennox built one heck of a system!

Strange about that, those furnaces were tanks while I have seen mini frigs larger than those old AC condensers. Neither not worth repairing even if parts were available.

IMO

The question on the table is if you replace it before you sell it or not. And If by replacing it you remove what could be a significant impediment to the home selling.

Yes, you are on borrowed time. I think that's understood.

The question of the HVAC unit will not come into play until the inspection - after an offer is made on the home. Unless someone catches that issue before hand, it will not affect the marketability or the bid price for the house. As long as the unit is operable it's not a defect that the owner must disclose at listing.

It will (probably- but may not) come into play post inspection and you should anticipate having to provide a cash amount to remedy the problem. Again, I would start at 1/2 the price of a new system or slightly more as my initial offer. You need to have a good idea of what that would be - so you need estimates. That said, the potential buyer will likely get his own estimate at that time.

As a seller, this saves you about half the cost of replacing the system and the hassle (or it might not be an issue at all for the buyer).

For the buyer, they get to decide what system (instead of the rock bottom unit that someone installs to sell). In addition, they get to decide if they want to install a new system or not. (they could take that money and use it for decorating) What's more, if they install the system instead of the seller, the warranty will be in their name. Some warranties are to the original purchaser and aren't transferable. I would very much prefer the cash as a buyer in this situation.

He with gin and grapefruit juice has the right aproch. Selling a home is more about preceptions than cold hard facts and numbers. The commonality amoung buyers is they don't want to buy a seller's problems. Amoung people as a whole ,understanging of structral and mechanical systems is uncommon. As witnessed by the people who come here to ask questions,what % of the population understand hvac operating efficiency? Point being a CPA will look at cost of taxs,insurance and utility bills and hesitate because insurance is high because property is in a 50 year floodplain. If our man tigerdunes is buying the same house,insurance likly never becomes an issue. Heck,the foundation might be split but the hvac will either be ship shape or the seller will be making allowance for it. Point is that if the buyer sees a recent report saying the hvac is operating and doesn't need repair,he has no farther questions about it and moves on to see if there's room to park his boat. What saltidawg is saying is don't wake any sleeping dogs,leave that to the buyer. What I was saying in my first post is be prepared in case buyer wakes one,you already know how to quit him down with minium of fanfare.
Ok,so after seeing how jake put it,that's even a better observation on when and what to replace. Obivously jake has seen newly painted houses for sale where the master bedroom is lime green and purple.

This post was edited by klem1 on Mon, May 12, 14 at 14:58