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House is a ranch built in 1950s. About 2000 SF of living space on one floor, with an unfinished second floor above. There is a 1950s gas furnace (185K BTU) in the basement with a scabbed on AC air handler from the 1980s which really doesn't work any longer, if it ever did. Huge old ducts running everywhere in the basement, making it somewhat unusable as workspace, as my head just barely clears underneath them without banging (I'm not overly tall).

Have had a few HVAC companies in to review. They immediately shake their heads and say it makes no sense to do anything more with the furnace or AC, both should be replaced. One guy said all the ducts are too large for a modern install and the system will never work right if they are not all replaced. The returns all come from exterior walls, where there are just openings in the stud bays and plaster with vents. Another company said the ducts could stay, the third had to think about it.

Lots of glossy brochures all around, and all immediately knew what size of furnace and compressor was needed without doing any sort of heat loss analysis.

There is a huge amount of free space in the unfinished second floor, and since no one has ever attempted to build it out in 65 years, and since I don't ever plan to, it seems to me the AC should be updated to run through there, not through the basement. As for heating, I was thinking of going hydronic, to reclaim so much of the basement ceiling (Where I'd like to put a large work shop), or go with a heat pump plus supplemental heat if needed. I'm in Pittsburgh, PA.

So basically, almost all options are open as far as heating and AC. Was hoping to get some other opinions. Thanks.
 

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For starters, read here.

https://www.angieslist.com/articles/difference-between-best-hvac-brands.htm

http://efficientcomfort.net/documents/Understanding_HVAC_System_Design_Issues.pdf

http://efficientcomfort.net/documents/Sizing_&_Selecting_for_Proper_Humidity_Control.pdf

http://efficientcomfort.net/documents/Bigger_is_Not_Better-Sizing_Air_Conditioners_Properly.pdf

www.loadcalc.net

It's entirely likely that the ducting is incorrect and will need to be redone. By your description it sounds like some sort of retrofitted gravity furnace.
Equipment placement in attics should be avoided if possible due to heat intrusion with the air handler/ducting, but it can be done.
 
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