Change Airconditioning Condenser?

Question

Hello, I'm wondering if it would be a good idea to change out the air condition condenser since it looks older, but not too horrible.  The air conditioning guy said it still has good life to it and works fine, but I know as a rehabber changing out the air condenser helps sell.  Please let me know.  Thanks.

Dave Barnard · Answer

Exactly how old is the condenser? If it's in the 25 to 30 year range I would probably replace it. However if it's newer and functions well, I would not replace it unless your end buyer brings it up. My experience with flips has been most buyers go off of what their home inspector says. If he says it functions your buyer will likely not mention anything. There are buyers out there that will have concerns with an a/c system that appears old and warn out, but deal with that IF it comes up.

J Scott · Answer

I'm one of those rehabbers that likes to do everything -- I do want anything to stick out as old, used, or aesthetically displeasing.  But, even though I tend towards the over-rehabbing extreme, I'll never replace a perfectly good condenser (by "perfectly good," I mean that my HVAC guy says it probably has at least another 10 years and isn't more than about 10 years old currently).

If it looks really bad (rusted, corroded, etc) but runs just fine, a good HVAC guy should be able to find replacement covers and other cosmetic parts to make it look better.

But, I see no reason to spend a lot of money on a new condenser (and quite possibly a new coil) just to say that it's new or to make it look newer -- in my opinion, this won't be a huge influence on buyers, assuming the unit isn't too old.

Chris Clothier · Answer

Greg -

We always replace the AC unit on properties we are doing for a retail sale more as a selling feature regardless of the age or condition of the unit.  Since we own a large number of rental units ourselves as well, if the AC unit is in good condition and especially i it has the life left in it that J Scott refers to, we will pick the unit up and store it and place it at the next rental property where the AC needs to be replaced.

In some cases, you can sell a used unit from a property with some life span left to an AC company to use for parts and put that income toward the costs of a new unit.

I will note that here in Memphis, partly due to the fact that things are less expensive and the fact that we do such a high volume of business, I can replace a unit for usually under $1,500.  That makes it very cost effective and it does have a positive effect on buyers which can lead to a quicker sale.

Will Barnard · Answer

Spending money to reeplace a perfectly functional condenser is wasting money. If it has an "older" appearnace to it, that is easily corrected by replacing the covers or better yet (and at a lower cost) refurbishing them. This can be accomplished by cleaning and waxing or if really bad, cleaning and painting the unit. I have painted two condensor units in my rehab days and since the inspection came back clean that the unit was functioning as it is required to, there were no issues or comments from those buyers.

Now, in a case such as Chris mentioned, with the ability to use the older and working units in his rentals, it may make sense to put the new one in the rehab project and store the older one, however, very few rehabbers have such scenarios and it does not sound as if you are in that boat.

Greg P. · Answer

http://www.google.com/imgres?q=air+conditioning+condenser+pics&hl=en&sa=X&biw=1366&bih=609&tbm=isch&tbnid=nAuhGsTvEyjr1M:&imgrefurl=http://ingramswaterandair.com/split-system-conditioners-payne-c-45_61_3968.html&docid=WBxLaC7DNxgLrM&w=208&h=208&ei=mFo5TvGFJIbUiAKy85D3Dg&zoom=1&chk=sbg&iact=rc&dur=311&page=22&tbnh=141&tbnw=158&start=406&ndsp=21&ved=1t:429,r:9,s:406&tx=93&ty=95

It looks like this but a little more dirty.  The reason I'm asking is because I've been watching a successful rehabber closely here in Minnesota and on his agent remarks he puts in a new ac/unit.  Again, I don't know if he does it for the aesthetics or the unit was broken before, but he always sells his houses within two weeks.  Btw, sorry for the long link.  Thanks for all of the replies.

Account Closed · Answer

If the paint is just faded give it a power wash then wax it with any brand of wax that says it's for paint restoration. It will look fairly new when your done if there is no rust.

J Scott · Answer

I've had a couple buyers demand new condensers when it wasn't really necessary.  In every case, the condenser was less than 15 years old (if it were older, I'd probably have replaced it) and after talking to our HVAC they were appeased...

Chris Calabrese · Answer

You don't say where you're located.  I know here in the "lowcountry", where it's very hot and humid, buyers are pretty concerned about having a quality AC system.  Most 1st time buyers want to make sure that they won't have any major expenses soon after buying the home.  With that said, our rule of thumb is if it's shiny and blows cold, we keep it.

Dave Barnard · Answer

Depends on the buyer. A first time buyer may be clueless, whereas a 2nd or 3rd time buyer may have had bad experiences with a/c and will likely pay more attention. I don't think there is a specific rule or guidline that needs to be followed here. You may just have to go with your gut feeling. If you have concerns about getting a lower offer as a result of the old condenser, then consider how much lower that offer might be in relation to what the new unit will cost you. In this market (at least here in this area of so. cal) I have not seen to many properties sell for full asking price anyway. With that in mind I feel your better off not replacing the unit until it becomes an issue. If it does, use it as a bargaining tool to negotiate with your end buyer.

Change Airconditioning Condenser?

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