Buying a new home heating and air conditioning unit

By Mike DuBose and Blake DuBose

 

It’s the middle of the summer, and it happens. You come home at the end of the day, expecting relief, and are greeted with a hot blast of stuffy air when you open the door. Your home is simply sweltering, and it looks like you need a new air conditioning system…fast!

Replacing a heating and air conditioning unit can be one of the costliest repairs that homeowners face. A single unit can run $8,000, $10,000, or more! However, climate control is a major factor in how comfortable you feel in your home—a fact that anyone living in our area of Columbia, SC can appreciate. Therefore, it’s worth the investment to ensure that you have the right heating, ventilation, and air conditioning (HVAC) system that warms and cools your home efficiently. Recently, Mike had to replace his two home HVAC units, so we have recent experience in this area that we want to share with you. Follow our research-based tips to make sure you choose the best equipment at a reasonable price.

First: Don’t Procrastinate

Once you’ve had your heating and air conditioning system for about 15 years, the likelihood of it malfunctioning or failing increases. If you sense trouble over the horizon, request an energy audit from your utility company, even if your air conditioning is still working. In our area, if you are an SCE&G utility customer, the energy provider will dispatch an engineer at no charge to spend a few hours examining factors that affect your home’s energy consumption and efficiency, such as its insulation, ductwork, windows, attic, current HVAC unit, crawlspace, orientation to the sun, and places where energy could escape. Then, he or she will provide you with a detailed report outlining specific areas where you can reduce energy consumption by making improvements. For example, one of the recommendations given to Mike was to upgrade his attic insulation (he recommends Insulation Specialists (www.insulationsc.com) for insulation work). Such changes make the job of heating and cooling your home easier on your HVAC system, which will extend its lifespan.

Identifying the Right Professionals

Your first step in buying a new heating and air conditioning unit is to find a qualified, trustworthy HVAC contractor to work with you throughout the process of choosing and installing a new system. In fact, in some cases, you may not need to have your air conditioner replaced at all—repairing or cleaning the existing equipment may achieve a satisfactory improvement in your home’s temperature. An experienced and honest professional will be able to help you decide.

Here are some items you may want to take into consideration when choosing a contractor:

Seek recommendations: Think of homeowners you know who have had HVAC work done lately, and speak to friends and colleagues who have worked with HVAC repair professionals in your area. Ask them about their experiences. Would they recommend working with that company? Do they have a horror story that you want to avoid replicating? Eventually, if an organization is incompetent, unresponsive, or unfair, word tends to get around, so keep your ears open!

Neighborhood Facebook groups can also be a good place to ask for recommendations, and review websites such as Yelp can also provide you with candid opinions on different companies. (However, most posters on such sites are typically people who have had either very good or very bad experiences, so take that into consideration when reading their reviews.) Other sites, like Angie’s List, screen reviews a little more thoroughly, so they may be helpful when weighed in combination with comments from friends and coworkers. Make a list of any names that come up repeatedly in a positive way. You are looking for contractors who are consistently described as honest, reliable, experienced, and very knowledgeable at what they do. Once you have narrowed your vendor options down to 3-5 companies, review their websites, search for contact information online, and give them a call.

Ask for references: During your initial contact, ask your selected vendors if they can provide recommendations from customers who had a new HVAC unit installed in the last year. Any experienced, reliable contractor should have several previous clients who are willing to speak about their positive experiences with his or her work (remember, most companies will connect you with friendly customers who will promote their products and business). Especially impressive are clients who have worked with the same vendor over a period of years—this shows that the contractor builds relationships with their customers, and that the homeowners are satisfied enough with their services to repeatedly come back for more. One important thing to note: just because a company has been in business for a long time does not mean that they’ve maintained the same quality levels. We experienced this firsthand when a highly-ranked HVAC company we used for 20 years was sold. Under the new owner, the quality of their services plummeted, and we did not renew our maintenance agreement. Therefore, you’ll want to make sure the references you receive are related to recent work.

Mike highly recommends Cassell Brothers (www.cassellbros.com) for personal HVAC and generator work and Total Comfort Solutions (www.totalcomfortsolutions.com) for commercial systems. He recently had Cassell Brothers install a new XV20i Trane 21 SEER variable speed unit (which is quiet, has a cover to prevent freezing, and comes with a 10-year warranty) in his own home. Total Comfort Solutions has serviced our commercial Trane equipment at Columbia Conference Center for the past ten years. Both companies are prompt, honest, reasonably priced, and responsive, and they get the job done with high-quality customer service!

Work with respectable vendors: You only want to consider hiring contractors who are licensed and bonded (ask to see verification of both). This gives you a reasonable expectation that their work will be of good quality, as they have to meet certain standards to be licensed; if they were to fail to complete the agreed-upon work, the bond would compensate you. For bonus points, Consumer Reports recommends seeking contractors with specialized certifications like HVAC Excellence or North American Technician Excellence, which require them to take exams proving their knowledge of the heating, air conditioning, and ventilation industry. The Better Business Bureau (BBB) also recommends asking the vendor other questions, like how long they have been in business (which tells you that they’re not a “fly by night” operation) and which manufacturers’ equipment they use. Typically, each HVAC company has a preferred brand or two of equipment that they specialize in installing. According to the BBB, you should select a company that works with at least two.

Obtain written quotes: Once you have interviewed 2-3 prospective contractors based on the previous factors, it’s time to obtain cost estimates from at least two top choices on the work you would like to have done. Schedule a time for the contractor to come to your home where you can show them your current air conditioning unit and explain any special concerns you may have. The American Council for an Energy Efficient Economy notes, “A good estimator should also ask about any heating or cooling problems you have had with your old equipment, and offer understandable explanations or solutions.” Assess the friendliness and knowledge of the estimator when you speak to him or her, as this will reflect how the company will do business with you. Be wary of estimators who seemed to be rushing to get to the next customer and do not take quality time to answer your questions.

During your appointment, the technician will perform an assessment of your home to make recommendations for your new HVAC system. Do not trust any contractor who says he or she can tell you the unit you need simply by looking at your home and the old system! The US Department of Energy recommends that you “insist that your contractor use the Air Conditioning Contractors of America (ACCA) Manual J to calculate the proper size of heating and cooling equipment.” Manual J calculates the capacity needed to heat and cool the home by analyzing factors like square footage and number of doors and windows.

Good contractors will usually go room to room to get the most accurate measurements. Some other influences that your contractor will take into account include: the climate where you live (and the weather extremes you can expect from season to season); how much insulation you have in your walls, attic, and other areas; how well-insulated your windows are; and the height of your ceilings.

Based on the results of his or her assessment, each contractor should be able to give you multiple options for your new HVAC system and explain the pros, cons, and costs of each. Secure each quote in writing so that you can compare them to make your final decision. Next, you’ll want to educate yourself on the terms contained in the quotes to understand the potential benefits to your comfort versus the projected expenses.

Weighing the Options

All HVAC systems are not created alike; in fact, there are many different brands and types available. Your two main considerations in finding a system that fits your home’s needs will be SEER rating and the size of the unit, which will also determine how much replacing your old unit will cost. Here is an explanation of these vital terms:

SEER (Seasonal Energy Efficiency Ratio): A standard published by the Air Conditioning, Heating, and Regulation Institute defines SEER as “the total heat removed from the conditioned space during the annual cooling season, expressed in BTUs, divided by the total electrical energy consumed by the air conditioner or heat pump during the same season, expressed in watt-hours.” Simply put, a unit’s SEER measures how efficient it is (more efficiency equals less energy spent—and therefore less cost—when cooling). As Abby Hayes noted in a 2014 US News and World Report article, “more energy-efficient systems are also better for the environment, so it’s a win-win.”

Some older homes may have HVAC systems with SEER scores of less than 10, meaning they are not very efficient at all! In fact, due to environmental concerns, the US government passed regulations in 2005 saying that manufacturers cannot produce systems with SEERs of 12 or below (window units, which typically have SEERs of around 10, are exempt). Additional regulations state that, beginning in 2015, a 14 SEER is the lowest allowed rating for HVAC systems installed in the southeast (including South Carolina, where we live, and Alabama, Arkansas, Delaware, Florida, Georgia, Hawaii, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, Tennessee, Texas, and Virginia). On the other end of the spectrum, some new, specialized systems now max out at a SEER of 33; however, a common range to receive quotes on from contractors in our area is 14 to 20 SEER.

The higher the SEER, the more money you will save per year on your electric bill; however, higher SEER systems cost more initially. The biggest factor to consider is the climate where you live. Do you reside somewhere hot, where you run the air conditioning most months out of the year? In that case, you’ll want to choose a higher SEER unit, because it is more efficient. Over the years, your lower energy bills will offset the higher initial price. Likewise, if you live in a cooler climate, it may not be worth the investment to get a hyper-efficient HVAC system.

If you wish to determine how much you will save by installing a new HVAC, conduct a Google search for the words “HVAC SEER savings calculator,” which will provide you with several calculators where you can enter your specific information. To calculate your true savings, you have to compare your current HVAC’s SEER rating to the new one’s rating. For example, going from an older 10 SEER system to a 14 could add 29% in your HVAC’s efficiency; going from 10 to 18 SEER will increase efficiency by about 44%.

Unit size: HVAC sizes are measured in “tons,” which refers to the unit’s ability to cool a certain number of British thermal units (BTUs) each hour. One ton can cool 1200 BTUs hourly, and residential units come in increments of .5 tons, ranging from one ton to five tons. The tonnage you need depends on the size of your home. Some larger houses may even necessitate two units, with one cooling upstairs and one serving downstairs.

You want to ensure that your contractor installs a unit of sufficient size to heat and cool your home efficiently. If it is too small, your system will run constantly, increasing your energy bill, and may fail to adequately cool your entire space on hot days. (This is especially relevant to older homes, which may have had more rooms added after the existing HVAC was installed.) You also don’t want a unit that is too large for your home. These units cost more up front and will cycle on and off repeatedly, using up excessive amounts of energy and increasing your power bill.

How do you know what tonnage you need to cool your home? One expert recommends using the following formula for warm areas like South Carolina:

• Multiply the house’s heated square footage by 25.
• Divide that number by 12,000.
• To the result, add .5, and that should be the tonnage you need for your home. (In cooler climates, you would subtract .5 instead of adding it at the end.)

If you have areas in your home that do not need to be climate controlled, such as an basement, garage, unfinished attic, or over-the-garage room, etc., deduct those from your square footage before using the formula. If you have questions or fall in between two sizes, a trustworthy contractor should be able to provide you with additional guidance.

Once you have settled on a final unit and contractor, obtain a comprehensive written estimate of the costs, including details like: the equipment’s make, model, SEER rating, and tonnage; available rebates; manufacturer and extended warranty information; annual maintenance agreement costs, etc. You may need to make a partial payment before the contractor will begin work, but never pay all of the money up front. We suggest using a credit card to provide you with some extra rights in case there are any problems.

Other considerations: If you don’t already have a programmable thermostat, it’s a good time to get one when you have your new HVAC system installed. According to Consumer Reports, “Proper use of a programmable thermostat can reduce your cooling costs by up to 20 percent.” This is because you can set the thermostat to a temperature that is closer to the outdoor temperature (either higher in summer or lower in winter) while you are out of the house. Why use energy (and pay more) to heat or cool a house with no one in it? Then, when you return, you can program the thermostat to a more comfortable temperature.

When your contractor assesses your home and existing HVAC system, he or she should also check the ductwork, ensuring that the tubing is the right size, adequately insulated, fits your new HVAC system, and can deliver enough air to the places it needs to go. Otherwise, your system will not work as effectively, and it may be noisy when running. Especially in older homes, the ducts may be the wrong size or in the incorrect location. Mike’s SCE&G energy audit, for example, found that his older ductwork was leaking excessively into his house’s crawlspace!

Also, ask the contractor to inspect the inside of the ductwork. Mike was experiencing numerous lung infections and learned from a technician that his ductwork and HVAC units contained significant amounts of mold, which can cause nasal congestion, coughing, wheezing, and eye, skin, and throat irritation and is often linked to lung conditions like pneumonia and asthma. He replaced the ductwork and also had special UV lighting installed inside the HVAC units to prevent future mold and to kill many germs and viruses.

If this is the case for you, or if your ductwork is old, consider having new ducts installed along with your new heating and air conditioning unit. Remember: you may want to balk at the cost, but installing a new, efficient HVAC unit with upgraded ductwork adds to your home’s value and resale potential! Similarly, if you have allergies, lung problems, or asthma, you may want to consider having a UV light installed at the same time as your new HVAC unit. We also suggest that you vacuum clean your air filters every 30-45 days and replace them every 3 months to cut down on the dust and allergens in the air you breathe.

Locate your exterior HVAC unit away from any “quiet areas” like your bedroom, living room, or back porch. This will help minimize noise pollution from the unit when it is running. It’s also considerate to put it somewhere that is not in view of the neighbors.

Installation and Maintenance

Getting your new system: Once you have confirmed the size and SEER of the HVAC system you’re looking for, refer to your potential vendors’ quotes to see which offers the best fit for you at a reasonable price. Note that the cheapest solution isn’t always the best—typically, “you get what you pay for!” Always consider what types of materials and services you will secure for the money you will spend. Look for a middle-of-the-road estimate from a highly-recommended contractor for the ideal balance of value and reliability.

Before work starts, ensure that you and your chosen vendor agree on a time frame for installing your new system, as well as for you to make payments (if you are not paying the balance outright). If you’re without air conditioning in the dead of summer, days spent waiting for the technicians to come can feel endless! However, don’t let this discomfort rush you into working with a company you don’t trust. Buy box fans to cool yourself down, check into a hotel, or bunk up with a friend or relative. If you have a two-story home, you can use inexpensive fans to direct cool air upstairs or downstairs to increase your comfort while you wait. If there are no complications, installation should typically take about one day (unless you’re having extensive ductwork done).

Be sure to ask your selected HVAC company if there are any perks you could be eligible to receive based on your choice of equipment. Your state, the federal government, and/or your utility company may offer rebates or tax credits for selecting an energy-efficient unit. For example, in 2016, the federal government offered a tax credit of $300 for installing a central air conditioning unit with a SEER of 16 or above, and SCE&G provided $200. The contractor will need to give you certain completed forms so that you may claim the credits.

Extending the life of your investment: Since an HVAC system is such a large expense, you’ll want to have it serviced at least twice per year. Prices for maintenance plans vary, but Consumer Reports notes, “A service plan that combines regular inspections with discounts on repairs and a labor warranty is worth negotiating into the overall price.” Another reason to consider a maintenance plan: your warranty may become void if you don’t have the equipment serviced regularly! (Check the fine print, of course.) Plus, you will also receive the highest priority for service if something goes wrong and repairs are needed.

If properly cared for, your new air conditioner should last for 10-15 years. Preventative maintenance can extend its lifespan toward the end of that range, as well as keep the efficiency of the unit up. The US Department of Energy says, “Following a regular maintenance schedule can reduce your heating and cooling costs by 5% to 10% and prolong the life of the equipment.”

The bottom line: The vast majority of Americans rely on heating and air conditioning systems to keep their homes at reasonable temperatures. In fact, according to Consumer Reports, “More than 75 percent of U.S. homes use air conditioning, and 90 percent of new homes are equipped with central air.” Replacing your HVAC system can be expensive, but given how essential it is to your comfort, it’s worthwhile to invest time and money in good equipment that will keep you comfortable every day of the year!

 

About the Authors: Our corporate and personal purpose is to “create opportunities to improve lives” by sharing our knowledge, research, experiences, successes, and mistakes. You can e-mail us at [email protected].

Mike DuBose received his graduate degree from the University of South Carolina and is the author of The Art of Building a Great Business. He has been in business since 1981 and is the owner of Research Associates, The Evaluation Group, Columbia Conference Center, and DuBose Fitness Center. Visit his nonprofit website www.mikedubose.com for a free copy of his book and additional business, travel, and personal articles, as well as health articles written with Dr. Surb Guram, MD.

Blake DuBose graduated from Newberry College’s Schools of Business and Psychology and is president of DuBose Web Group (www.duboseweb.com).

Katie Beck serves as Director of Communications for the DuBose family of companies. She graduated from the USC School of Journalism and Honors College.

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