When you’re preparing to sell your home, having a new roof can be a great selling point. Your real estate agent will likely tell you that buyers find value in a new roof as it saves them the trouble of dealing with a roof replacement. Most buyers prefer to avoid significant post-purchase expenses, like a new roof installation. Some might not even consider buying a home with an older roof to play it safe. But does this mean installing a new roof will automatically increase your home’s value? Well, it’s not that simple.
If your roof is nearing the end of its lifespan or showing signs of leaks, it could actually decrease your home’s value. In such cases, replacing the roof is a wise move. However, investing in premium roofing materials might not always bring you the anticipated increase in home value. It’s challenging to determine how much a new roof will raise your home’s resale value. There are different factors that come into play.
In this article, we will discuss how a new roof affects home resale value.
The Downside of Keeping Your Current Roof When Selling Your House
The exterior of your home creates the first impression for potential buyers, and your roof is a vital part of that initial impression. While a few cracked shingles might not discourage most buyers, if your entire roof is in bad shape, it’s a good idea to address it before putting your home on the market.
While investing in a new roof can seem costly, it could be a smart move when you consider the negative impact your current roof might have on your sale:
- Fewer offers: Homes needing significant maintenance might not attract buyers seeking houses that are move-in-ready, potentially resulting in less interest in your home.
- Prolonged sale process: Selling could take longer as buyers may want to negotiate the price or request roof repairs before closing the deal.
- Reduced offer price: Buyers who would want to consider buying your home despite the old roof might not be willing to pay as much for your home in its current condition as they anticipate for future repairs.
How Does a New Roof Enhance Your Home’s Value?
Enhancing curb appeal
Teaming up with reputable roofing companies can significantly boost your home’s resale value. A new roof is one of the simplest ways to enhance curb appeal. If your roof appears damaged, worn, or sagging from the road, it could deter potential buyers. A new roof can attract buyers and transform your home’s look based on the chosen material. Remember, your roof contributes to 40% of the first impression from the exterior.
Boosts energy efficiency
A new roof can also help seal the deal by making your home more energy-efficient. Energy-efficient homes generally command higher resale values due to their lower energy bills. A freshly installed roof by experienced professionals can help manage heat and moisture loss, ensuring an efficient system that reduces heating and cooling costs.
It gives buyers peace of mind
Another reason a new roof can justify a higher asking price upon selling is that it reassures buyers they won’t face roof repair expenses anytime soon. Trusted roofing companies’ new roofs can last over 20 years after installation. Home inspectors carefully evaluate roofing systems during appraisals, assessing roof quality and potential future repairs. A new roof becomes an excellent selling point.
Modernizes the home
Roof replacement opens the door to modern construction technologies and materials that weren’t available when your roof was originally installed two decades ago. Consider energy-efficient insulation materials, solar roofing options, and roof materials with extended warranties.
How Much Does a New Roof Increase Home Value?
While a new roof does enhance your home’s appearance, the extent of its value increase varies. The national average cost for re-roofing is roughly $12,000, with material expenses on the rise. A new roof can yield returns of up to 100%, the highest cost recovery among all exterior remodeling projects, according to a 2022 Remodeling Impact Report from the National Association of the Remodeling Industry (NARI). So, your new roof would recoup its costs.
Updating your roof with new asphalt shingles can raise your home’s value by around $17,800, according to a 2023 Remodeling cost vs. value report. This calculation assumes a rectangular hip roof with two standard skylights and a vented ridge.
In this case, your new asphalt shingle roof delivers a 61% return on investment, indicating that the increased home value would be approximately 61% of the project cost.
A fresh metal roof could add roughly $23,160 to your home’s value, as per the Remodeling report. Though this increase is greater than with asphalt shingles, the initial cost is higher. Consequently, the estimated return on investment sits at 49%, according to the report.
These estimates are based on needing 3,000 square feet of standing seam metal roofing on a rectangular hip roof with two average-size skylights and a vented ridge.
Additionally, real estate professionals rank exterior projects based on their appeal to buyers and expected resale percentage return. New roofing ranks at the top of both lists, outperforming all other exterior home improvements. Notably, 33% of realtors suggest completing a new roof before selling.
Factors that Influence How a New Roof Affects Your Home’s Value
Putting a new roof on your home is undoubtedly a smart investment, but understanding the extent of its impact – whether it increases your home’s worth – involves considering a few key factors. These factors include the current state of your roof, the local housing market conditions, and the specific type of replacement roof you opt for.
The Condition of Your Existing Roof
Much like maintaining plumbing, keeping your roof in good shape is essential to home care. Buyers expect a well-maintained roof and a compromised one could deter them from buying and raise concerns about potential maintenance issues. A poor roof condition can also be noticed by appraisers, leading to a decrease in your home’s value based on the severity of the roof issues or damages.
However, if your roof is relatively young and in decent condition, a brand-new roof might not offer a significant advantage. Think from a buyer’s perspective: Would you pay extra for a house with brand-new plumbing compared to one with functional albeit older plumbing? As long as the roof looks good and is projected to last, most buyers will be content. Other aspects of the home typically hold more sway over their decision than the roof’s condition.
If you’re selling a home with an old or severely damaged roof, replacement becomes a sounder investment. Such a roof could deter numerous buyers, and those still interested might seek a discount to accommodate the roof replacement cost. Additionally, legal requirements might require replacing a severely deteriorated roof.
For minor roof issues, repairing might be more cost-effective than a complete replacement. However, neither repair nor replacement is likely to significantly boost your home’s appraisal value if the roof is otherwise in good shape. So, keeping costs manageable is advisable – most repairs cost much less than a full roof replacement. To be sure, consult a roofing professional for quotes on both repair and replacement to weigh their benefits and costs.
Market Conditions
The value increase from a new roof varies based on the housing market. Overall, market conditions affect the impact of home renovations, including roofing upgrades. To gain insight into the market situation, consulting local appraisers and real estate agents is the way to go. However, there are also regional data that can provide guidance.
The Type of Shingles You Choose
Choosing materials that suit your neighborhood is crucial for home renovations. It’s impractical to invest in luxury features in a starter house, as your home value won’t likely surpass your neighbors’. You won’t recoup the full value of high-end shingles if neighboring homes have more affordable options.
However, upscale neighborhoods might warrant premium shingles. Designer shingles match the style of other exterior and interior materials, aligning with buyers’ expectations. Standard shingles could deter buyers when they can find homes with designer shingles in the same area.
Replacing a roof is more complex than repainting or changing bathroom tiles. Buyers won’t want to re-roof a home just because they don’t like the shingle color. Instead, they’ll likely bypass the offer.
Considering your neighborhood and buyers’ preferences, consulting a real estate agent can guide you on the type of asphalt shingles expected and how buyers perceive a new roof’s value.
What Roofing Materials Have the Most Impact?
Your choice of roofing material also shapes your home’s value. Different roofing materials often come with extended warranties when professionally installed, offering peace of mind for up to several decades. Partnering with reputable roof repair and installation contractors in your area can enhance your return on investment. Prioritize established businesses with robust warranties to give your home’s value a substantial boost.
Asphalt shingles continue to be a reliable option, provided they’re from reputable manufacturers and align with the materials used by your neighbors. Some insurers might even offer lower rates for homes with new laminate roofs. Sharing this detail with potential buyers could sway their decision in favor of your home.
However, metal roofs aren’t as cost-effective. On average, they’re pricier than asphalt roofs and offer a lower percentage return. Additionally, consider buyers’ reactions to metal roofs, as their rarity might concern those unfamiliar with them.
Cedar shakes are appreciated for their natural charm but demand substantial upkeep. They deteriorate quickly, are flammable, and need treatment against insects and mold.
Slate roofs, with their appealing natural look, are favored for larger homes. They generally cost about the same as the national average for re-roofing, while synthetic slate is significantly more expensive. Yet, slate shingles boast a long lifespan, minimizing the need for frequent replacement.
Roof Repair and Replacement Choices
When it comes to addressing your roof issues, you have a range of options to consider, tailored to your current roof’s state and your budget.
Replacing Damaged Shingles
If your roof has been affected by wind or fallen branches, swapping out individual damaged shingles can be a cost-effective solution. Just ensure that the replacement shingles match your existing roof for a seamless look.
Opting for Partial Re-Roofing
When specific sections of your roof demand attention, a partial re-roofing approach can be taken. However, keep in mind that there’s a limit to how many times you can opt for this before encountering an uneven slope. If your roof already boasts multiple layers, a complete roof replacement might become necessary. This is pricier due to the need to repair the old roof beforehand.
Considering a New Roof
Assessing the wear, age, and climate impact on your roof might point to the need for an entirely new roof. Generally, you have two main choices:
- Tear-Off Roof Replacement: In this method, the old roof is fully removed and replaced with a brand-new one. Several advantages come with this approach. Firstly, it allows a comprehensive inspection of the roof for any hidden issues. Additionally, shingles adhere more securely when attached directly to the home’s structure, resulting in a higher-quality finish. One significant benefit is that a tear-off roof replacement holds great appeal for potential buyers. If you decide on this option, it’s wise to highlight it in your listing description.
- Roof Over: You can opt for a “roof over” approach for a more budget-friendly alternative. This involves placing a new roof on top of the existing one without removing the underlying layer. It offers the same appearance from a cosmetic standpoint, and you can market it to buyers as a new roof.
Ultimately, your choice hinges on various factors, including the extent of the roof’s issues, budget considerations, and the impression you want to make on potential buyers.
How Much Does a New Roof Typically Cost?
So, what’s the ballpark cost for a completely new roof? According to Angi, you’re looking at something like $5,886 – $12,794. To get a closer estimate, consider your home’s square footage. A larger house naturally means a larger roof and, consequently, a higher cost. On the other hand, a smaller house generally entails lower expenses.
Is Replacing Your Roof Before Selling Worth It?
The central question of this discussion is whether replacing your roof before selling is a worthwhile endeavor. Based on the figures above, the answer leans toward “No.” The return on investment (ROI) doesn’t quite match up with the initial cost of replacement for homeowners.
While a new roof might not dramatically hike up your home’s value, it can still serve as a valuable selling point. Many real estate professionals view a new roof as a compelling tool for selling. Buyers are drawn to homes with fresh roofs because it spares them from shouldering replacements or major repairs—offering a sense of security.
Although buyers might not be inclined to pay extra for a home solely due to a new roof, they could very well prefer it over a comparable property with roofing issues. If your home lags on the market while others around it are selling, a worn-out roof might be the culprit for lack of interest.
Don’t Overlook Curb Appeal
Remember that your roof is pivotal in your home’s curb appeal—the exterior’s attractiveness. Curb appeal significantly influences buyers’ interest in your property. Research from NARI has confirmed that enhancements improving curb appeal are top-notch investments to boost home value. Homes that captivate at first glance foster quicker emotional connections with buyers. In fact, a less-than-appealing exterior might deter some buyers from even stepping inside.
Enhancing with New Asphalt Shingles
Your roof occupies up to 40% of your home’s exterior visual space, making it crucial for curb appeal. If your current roofing color isn’t a hit or aligns with unconventional tastes, choosing new asphalt shingles in a more appealing shade can genuinely transform how potential buyers perceive your home. Selecting the right shingle color is vital, and resources are available to guide you.
Remember, a well-maintained exterior signals to buyers that the rest of the home received attentive care. Even if it’s a bit of an assumption, your roof’s condition often reflects the overall investment and care you’ve invested in your home.
Legal Considerations
Certain regions mandate roofing disclosures by law. Roofing certifications can also be obtained to provide buyers with assurance about the roof’s performance within a specified time frame. These certifications might imply a guarantee, although not always. The National Roof Certification and Inspection Association emphasizes that roof inspectors possess specialized knowledge and can certify a roof’s performance for buyers.
In some cases, home buyers are required to get a roof certification, and they may face limitations when purchasing a home with aging or subpar roofing. Buyers intending to secure a Federal Housing Administration or Veterans Affairs loan should be aware of roof-related restrictions. These buyers might be obligated to retract their offer if a roof certification cannot confirm the roof’s good condition for at least the next two years.
Regardless of local requirements, it’s prudent to disclose the roof’s condition to new buyers. Failing to do so might lead to legal action if buyers encounter unexpected roof issues after moving in.
Navigating Negotiations with Buyers
Sometimes, homeowners assume their home is sold, only to have buyers withdraw due to roof concerns at the last minute. What if you cannot undertake repairs or need to relocate urgently? With legal advice from a real estate attorney, you can engage in negotiations with buyers to address these matters.
Your attorney might suggest various options. You could lower the asking price and have buyers commit in writing to performing the repairs. Alternatively, sharing a roofing professional’s estimated repair costs might reassure buyers. This could lead to you providing the repair funds upon closing.
It’s essential to collaborate with an experienced real estate agent and attorney to ensure these negotiations are legally binding. Even if you informed buyers about the roof’s condition during the purchase, some may resort to legal action over roofing issues.
Comparing Re-roofing to Other Home Renovations
If you’re contemplating home renovations before selling, a new roof is a favorable choice in terms of return on investment (ROI). Opting for a new asphalt shingle roof is more economically advantageous than several popular home improvement projects, such as upscale master suite additions, backyard patio installations, and mid-range bathroom renovations.
Conclusion
The impact of re-roofing before selling varies, but ultimately, it goes beyond mere numbers. It affects a property’s overall appeal, energy efficiency, and buyer perception. While a new roof may or may not guarantee a 100% return on investment, it contributes to a more marketable and attractive home. As part of a comprehensive strategy to enhance your property’s value, a new roof, when considered thoughtfully within the broader context of your home’s condition and local market dynamics, can be a valuable asset in your quest for a successful sale.