7 Points to Examine When Replacing a Home Component

Take your time to consider several factors before deciding whether or not to replace a home component, such as an AC compressor. majivecka/Shutterstock

Dear Monty: I will be selling my house within the next four to five years. The compressor on my A/C went out. Should I repair or replace the whole unit? The current unit is a little over 12 years old, and the compressor repair will be under warranty for one year. Prices: $2,000 to repair, $6,000–$7,000 to purchase a new unit.

Monty’s Answer: There are several factors to consider in determining whether to repair or replace a home component. The factors vary depending on the element. With a compressor for air conditioning, here are the considerations.

No. 1: Price Is a Factor

The additional considerations below contribute to the price. Understanding the relationship between the price and the element will lead to the best decision.

No. 2: The Furnace Brands

Mixing brands may reduce operating efficiency. Different brands often have unique features that may not be compatible or decrease the efficiency of other compressor brands.

No. 3: Different Types of Compressors

For example, some are one-stage, and others may be variable-stage. The various models claim separate energy savings in addition to cost differences.

No. 4: Compressor Unit Size

You want to be sure the replacement unit is not oversized or undersized.

No. 5: The Time of the Year

Suppose the unit fails and the end of the busy season is near. In that case, it may pay to wait until fall when the contractors are not as active for the possibility of better pricing.

No. 6: Warranties Are Not Equal

Understanding the warranty on a repair or replacement may be a significant factor in making the determination.

No. 7: The Contractor

An HVAC contractor knows more about compressors than the consumer. Some contractors will use that knowledge to their benefit at your expense. This chasm is called information asymmetry and is common in many service businesses. Real estate agents, physicians, dentists, and car repair mechanics are other examples of service businesses that have the potential to abuse their knowledge.