Will you be able to sell your home when the air conditioner becomes illegal?
Decades ago, the EPA began the phase-out of R22 refrigerant, also known as freon. We are inching closer and closer to the deadline for the substance to be completely banned. We've got less than 2 years to take action. January 1, 2020, is the date that these systems become obsolete and can no longer be repaired when the repair requires refrigerant.
I've seen many of the homes in my area, and I can tell you that there will be plenty of households affected by this. I am already finding it hard to sell a home with an R22 equipped system. Freon costs alone are skyrocketing. This week I saw an estimate for over $400 for a small amount of freon. Ouch!
Want to know if your air conditioner is one of these doomed units? Read this article here for instructions on how to check it and what you can do ahead of the complete ban.
Beating the Inspection
As I continue my series on Beating the Inspection, I address this looming threat to home sales. You can read my previous article on sidewalk repair here.
What does it mean if you are planning on selling your home?
It can have a tremendous impact on the sale of your home. The system will be inspected at time of sale. The inspector will report to the buyer the age of the system and the use of R22. What buyer would purchase a home with an AC unit that cannot be serviced?
What should a seller to do?
I believe that you have 3 options.
- Your best option for a smooth transaction is to replace your R22 systems in the next year or so. Your maintenance cost on the old system is going to continue to rise. Bite the bullet and do what is necessary. If you have one of these obsolete units, it is likely over 10 years old.
- The second option you have is to stipulate in your sales agreement that you will rebate a portion or all of the cost to the buyer so that the buyer can replace the system. This is the easy way out, but you have to get the buyer to agree to it. If you are tight on cash and have enough equity in your home, it might be the only option you have.
- The last option is the riskiest. You just hope that the buyer doesn't care and wants your home so much that they will take on the burden of replacing the system. You need to have a super desirable house for this option to work.
Planning On Selling Soon?
What else do you need to consider before selling your home? Give me a call. I will visit your home and give you a punch list as well as a market analysis of your home's value. This is a no-obligation service that I provide for free. I want to earn your business – let me show you why.