When homebuyers are searching for properties that are priced around $20K, every dollar obviously matters—and this is particularly important during the winter season as many issues might be revealed that weren’t so obvious during the warmer parts of the year.
And out of all the systems comprised within a low-cost property, the furnace is arguably the most important. This is especially the case if you’re hoping to flip, rent, or make a budget property even remotely livable during the winter.
We recently interviewed Apex Clean Air’s furnace repair technicians in Salt Lake City UTto learn more about the importance of winter furnace repairs and how they can potentially make or break the overall success of a budget-friendly investment.
So, check out the below sections to see how furnace repairs can have a significant impact on property investors with tight margins!
Winter Often Exposes Furnace Issues That Are Hidden During Summer
It’s unfortunately common for furnace systems to seemingly appear functional during the summer and fall months, and then completely fail right as temperatures start to drop at the beginning of winter once it’s put under daily stress.
This is largely due to the fact that cold weather will highlight all sorts of common issues, including the following:
- Burning smells or unusual noises
- Short cycling
- Inconsistent or weak heating
- Starter failures
- Abnormally high energy consumption
- Ignition or pilot light malfunctioning
These aren’t just minor inconveniences at budget properties, because they can also signal much deeper mechanical dilemmas that require professional attention. It’s common for people to find out about a home’s true condition once they’re utilizing its heating system, which can compound an initial purchase price through pricey repairs or even system replacements.
Furnace Repair Costs Can Potentially Sway An Investor’s Profit Margins
A lot of investors purchase affordable properties on relatively tight budgets, and repair costs can sometimes have a tangible impact on their bottom lines.
It’s important to keep in mind that minor furnace repairs will range from around $100-$300, moderate replacements will range between $400-$800, and full furnace replacements will exceed $2,500.
So, some properties might initially seem like an unbeatable deal—until they quickly become a money pit due to heating system failures in the middle of the winter. And for people hoping to flip budget homes, these types of unexpected heating system repairs can result in lost profits.
Energy Efficiency Makes Or Breaks Winter Profitability
There are also many old budget homes that subsequently have old furnaces that are around 20-30 years old. These older heating systems usually run very inefficiently, which means they’ll consume a lot more electricity or fuel in order to properly heat the home.
When old furnaces aren’t properly maintained, they’ll end up doing the following:
- Increasing monthly heating bills
- Running longer
- Being at high breakdown risks
- Creating uneven household temperatures
And for investors hoping to rent out budget homes, these high heating bills can be a significant drawback. The same thing goes for investors hoping to live in a budget home themselves, because energy inefficiency strains tight finances.
But by investing a furnace repair appointment at the beginning of winter, homeowners can reduce their overall energy use and make their home ultimately more attractive and affordable.
Current Furnace System Conditions Impact Property Value & Negotiation Power
Furnace conditions often are a huge factor when determining a budget property’s resale value, because a reliable heating system will do the following:
- Help the property pass inspections
- Increase the overall value
- Reduce safety and liability concerns
- Make the home more appealing for potential renters
But on the other hand, failing furnaces give most buyers a lot more negotiating power in terms of lowering prices. Investors will often use this type of information strategically by justifying a lower offer or requesting discounts.
So in many cases, investing in a furnace repair will give property owners a better competitive advantage toward low-budget property investors!
You Should Never Overlook Property Safety
Winter furnace dilemmas aren’t just pricey, because they can also be very dangerous. When a budget property has an unrepaired furnace, it can pose potential problems like:
- Electrical fires
- Carbon monoxide leaks
- Gas leaks
- Heating failures during freezing temperatures
This is why furnace repairs are often viewed as much-need safety precautions at budget properties, because even these relatively small investments can avoid expensive damages and potential health emergencies.
Furnace Repairs Are Often Needed At Budget Properties This Time Of Year
Furnaces aren’t just another system when you’re dealing with budget properties, because they’re actually a make-or-break component in terms of the long-term validity of your investment.
The harsh winter months often expose a property’s weaknesses, but prompt and timely repairs can mean all the difference between experiencing a costly setback or profitable investment venture!