Add Home Equity with HVAC Upgrades

Posted On: September 27, 2021

If you’re interested in improving the value of your home and adding home equity, you’ve likely considered some of your options for renovations and remodeling. But are you looking at the right ways to upgrade your home? According to research from Harvard University, even as the amount of money Americans spend on renovations increases year over year, the percentage of return they see on their projects is actually decreasing. So it’s important to choose your renovations and upgrades carefully.

If you want to make sure you’re getting the right value for your money on home improvements, it’s not enough to just improve whatever comes to mind. You want to be mindful of your options and do some research. Today, we’ll talk about a few things to keep in mind and what investments actually show good returns for homes in America.

Understanding Home Equity

Before we dive into what you can do to improve your home equity, let’s make sure we understand what home equity entails. To put it briefly, home equity is the value of your unencumbered interest in your home — in other words, it’s the difference between what your house is worth on the market and every debt connected to the house, mostly your mortgage.

To increase your home equity, you have to pay off your mortgage (and any other liens on the property) or improve the market value of your home — something most easily done by enhancing your home, so it’s more valuable to buyers.

Which Upgrades Offer a High ROI?

When it comes to upgrading your home for home equity, you don’t just want to go for the most desired upgrades for a home; instead, you want to go for the upgrades that increase your market value significantly more than they cost to make.

A quick glance at an ROI assessment of popular remodels shows that the remodels you tend to think of — major upscale kitchen remodels, improvements to the master suite, rear decks, or patios — have some of the worst returns possible. They cost a lot more than other upgrades you could make, and they don’t improve your home’s value nearly as much as you might hope.

Instead, the highest ROI is seen in moderately priced, vitally important practical upgrades. HVAC systems substantially outperform popular remodels, with average returns of about 71% — and that’s for all HVAC system improvements, with certain upgrades showing even greater returns. Adding heat and/or air to a house that lacks one or the other is a simple major upgrade. Beyond that, improvements to efficiency through modern tech, ductwork improvements, or systems like heat pumps also show substantial ROI, as do improvements to comfort and health with long-lasting impacts, such as air filtration and purification systems.

These upgrades go well with other practical remodeling efforts, such as improvements to insulation, windows, and doors, all of which can render a home more comfortable and efficient without requiring an investment in low-return luxury materials and products.

Think Beyond Mere Equity

When you’re considering home equity and the value of your home, it’s important that you realize not everything of value directly raises your market value and equity. Some improvements won’t move the line, but they will appeal to buyers and make it easier to sell. This may be splitting hairs when defining equity. However, it does shape how you might make upgrade decisions if you’re considering selling your home versus considering assessed equity for a line of credit or something similar.

Upgrades that make your home “greener” are doing quite well in this sense, as buyers don’t want to buy a house only to discover it is drafty, has poor air quality, and costs too much to heat or cool. This is also something they can experience directly on a walk-through — poor air quality and inadequate HVAC will give a poor impression, even if the potential buyer doesn’t think about it actively.

Learn More About Improving Home Equity Through HVAC Upgrades

Curious about which upgrades might improve your home value the most? The team at JM Mechanical can assess your home and help you figure out what you need to improve or add to make your home more efficient, more comfortable, and more valuable.

Contact us today by dialing 513-574-4000!

Read What Our Customers Are Saying

Fantastic service! From the staff I spoke with the two service and installation technicians, all were very informative and professional. I highly recommend JM Mechanical Heating and Cooling. I plan to utilize their services in the future for my semi- annual HVAC check-up!

Sandy G.

I was impressed by their level of customer service, and they really care about customer satisfaction. The office staff are very friendly, and they follow-up to be sure everything went as expected, and really want to help if there were any issues. Brandon is exceptional, takes the time to explain what is going on and really seems to care about his customers. A+ experience.


The woman who answered the phone was very helpful and professional and she immediately gave me available times and fortunately Jason was able to come on site today, detect the problem and I ended up needing a brand new water heater after mine had been over 12 years old. Jason was incredibly professional, courteous, fast, and respectful of my home. I highly recommend JM to anyone and if I ever have trouble again they will be my FIRST call! Thank you for the exceptional service!!

Eva G.

JM Mechanical services all 20+ locations, of our company, and we are very happy with the technicians and the very prompt response time. The customer service of Josh, Brandon and Jason has been excellent.

Clare A.

Amazing service! Friendly is an understatement, they even entertained our German Shepherd by playing fetch with him. Very knowledgeable and efficient as well. You can tell they love their work and they know how to do it. Highly recommend!!

Crissy B.

Excellent service from administration to service. JM Mechanical conducts business in an honest and ethical manner at an affordable price. Service is also extremely timely. James H. has installed both a water heater and furnace at my home in the last 6 weeks. James is knowledgeable, professional, courteous, and a pleasure to do business with; I am very pleased with both jobs. Thank you JM Mechanical; I greatly appreciate your reliability, quality and integrity.

Brian L.

James H. and Jeff F. were prompt as per usual this morning and gave prior notification via text messaging that they were on their way. We have nothing but nice things to say about this company. They are always clear and concise on the course of action necessary to fix the problem. Every time we have used J.M. Mechanical we have been treated with the utmost respect and have never talked down to us like some other companies have done. They installed a new heat pump for us today and we couldn’t be happier with the results. They were fast and efficient in every way and we will continue to use them on any of our future needs.

Dennis M.

Always great customer service and incredibly fast service from JM Mechanical! Plus, their repairs and replacements for our apartment rentals have always been top notch. Myself and my family would gladly recommend them to anybody!

Brent B.

By far the best HVAC company that I have ever dealt with. Extremely professional and they do excellent work! I use them for both my home and business.

Mo Halpin
View Our affiliations
affiliations logo affiliations logo affiliations logo affiliations logo affiliations logo