Having a properly functioning HVAC unit is essential to keeping your home comfortable, whether during the freezing days of winter or the sweltering heat of summer. But when it's time to purchase a new unit, how do you know where to start?

Choosing the right heating and cooling system for your home can be overwhelming, but buying an HVAC unit doesn't have to be a stressful experience. By understanding how your HVAC unit works, you can determine exactly what you want from a new system and more easily compare available models to find the right one for your property.

Paired with a home warranty from First American, your new HVAC unit can provide your home with reliable heating and cooling for years to come, protecting your budget and your comfort. Learn all about what to look for during your shopping journey in our new HVAC guide to choosing the right system for your home.

Assessing Your HVAC Needs

Before you begin comparing HVAC models, it's important to know exactly what type of unit you need for your home. Start by reviewing your current HVAC unit, as well as the owner's manual, to understand its capacity, energy efficiency, and any additional features. You may want more from a new unit, especially if you want to take advantage of the latest technological advancements.

Your home's comfort and your HVAC unit's energy efficiency should always be your top priorities when choosing a new HVAC system. Heating and cooling technology has improved over the years, resulting in more efficient units that can help keep your home comfortable during any season, so look for the best heating and cooling systems on the market.

You may also want an HVAC unit that is compatible with a programmable thermostat, which allows for better temperature control. With more advanced smart thermostats, you can even control your house's temperature from anywhere with your mobile device.

Learn all about replacing your AC unit with our guide, Everything to Know About AC Replacement: Cost to Timing.

Two outdoor HVAC units on a concrete block in the summer, surrounded by greenery

Choosing the Right HVAC Unit

There are four main types of HVAC systems:

Split system – "As the name implies, this system 'splits' the outdoor compressor unit from the coils, which are part of the indoor air handler unit. Splits can be used for heating or cooling. A split system is the most common type of HVAC unit on the market.
Hybrid system – Made up of a combination electric heat pump and gas furnace.
Ductless system – Indoor or outdoor heating or cooling unit connects to an indoor fan without the use of traditional air ducts.
Packaged system – Heating and cooling are combined into a single unit.

To heat and cool your home efficiently and effectively, your HVAC unit should be appropriately sized for your home. If the system is too large, it will run too often (among other problems), leading to a shorter lifespan. However, if the system is too small for your home, it will struggle to maintain a comfortable temperature.

A professional HVAC technician or contractor can help you determine the right size system for your home. The contractor will consider the square footage of your home, sun exposure, and insulation, to determine the best HVAC installation location and size for your home.

HVAC unit efficiency ratings, such as the Seasonal Energy Efficiency Ratio (SEER) number can help you understand a unit's efficiency. Do a little research to understand any ratings listed on potential units and know what range of numbers is best. Other efficiency ratings include the HSPF, AFUE, and EER, all of which are designed to help consumers understand how efficient an HVAC system is.

Understand the latest efficiency standards with our guide to New HVAC Energy Efficiency Standards for 2023.

Take time to compare the different systems available, as well as their features and pricing. A thorough HVAC brand comparison can help you find the right unit for your home temperature needs.

Budgeting & Financing Options

While it can be tempting to choose the most affordable HVAC unit, it's often a good idea to invest a little more in a better, more efficient system if you can. Doing so can save you money by lowering your monthly energy bills and a better system may require less maintenance.

Before you choose a new HVAC unit, it's important to set a realistic budget for this major purchase. To get an idea of what you can expect to spend, below are the average costs for HVAC system components:

Central air conditioning - $3,350-$5,950
Heat pump - $4,000-$8,000
Furnace - $1,800-$4,000 (gas) or $4,200-$6,000 (oil)
Boiler - $1,500-$3,500

Keep in mind that these price ranges will vary depending on your location, as well as the brand and model you choose to buy.

A new HVAC unit is a big investment, which is why it's important to consider all your options for covering the cost. One of the best HVAC unit purchase tips is to explore any incentives that could help reduce the upfront price, as well as financing options from your local bank or other loan companies. Many cities and utility providers offer incentives to encourage consumers to buy more energy-efficient appliances, so do the research before you invest.

Above all, it's important to see your HVAC system as an investment in your home. While the initial purchase price is significant, you'll likely save money through lower utility bills. And if you plan to sell your home sometime in the next few years, a newer HVAC unit can be a major selling point for potential buyers.

Finding Reliable HVAC Contractors

Once you've determined the type of HVAC unit you want for your home, you need to find a qualified and reliable contractor to install the equipment properly. The best contractors will take time to evaluate your current system and work with you to choose a replacement that meets your home's needs and fits within your budget.

Do your research before hiring a contractor by reading online reviews from previous clients, as well as asking for recommendations from friends and family members. Make sure to request quotes from at least three contractors before deciding, so you can choose the right company for your budget.

An outdoor HVAC unit with a clipboard and pen sitting on top, with a blurred background

Understanding HVAC Warranties

An HVAC unit warranty can help protect your budget against major issues in the future. Review the warranties available from both the manufacturer and the contractor and understand what is and isn't covered under these agreements.

While most HVAC units come with a basic warranty, you may want to buy an extended warranty to cover the system more fully. An extended warranty may cover the equipment for a longer period, as well as cover regular HVAC unit maintenance or any significant issues you may run into with the system.

Making the Purchase

Be sure to closely review the contract with the HVAC installer before signing and understand what is expected of you financially. Talk to your contractor about the timetable for the installation and confirm that they will comply with local regulations and obtain all the right permits.

Finally, take time to verify your warranty coverage and make sure that your new HVAC unit is properly registered to take full advantage of the warranty when needed.

Maintaining & Protecting Your HVAC Investment

Regular maintenance can prolong the life of your HVAC system and ensure that the system stays in proper working order. Make sure to schedule regular maintenance appointments with a technician or contractor, especially before summer or winter, when the system works its hardest to maintain a comfortable home temperature.

Make sure you know exactly what maintenance is needed with our guide, HVAC Maintenance: All You Need to Know About HVAC Systems.

Protect Your Budget with an Appliance Coverage from First American

By choosing a home warranty from First American, you can protect your new HVAC system investment and your budget. Contact us today to get a free home warranty quote and find the right warranty for your home and ensure that a qualified technician is only a call away.

The contents of this article are provided for general guidance only. First American Home Warranty does not assume any responsibility for losses or damages as a result of using this information.