Does Replacing My Roof Increase The Value Of My Home?
When you begin the process of selling your home, one of your first questions may be “What is a fair asking price?” There are many factors that go into determining a good listing price, including looking at the average home cost in your area, the age of your home, and the amount of improvement work it needs.
Many homeowners getting ready to sell want to know what they can do to increase their home’s value to potential buyers. One question they often have is whether or not the state of the roof is a factor in determining the value of a home, and if getting a new roof installed before putting their home on the market would be a worthwhile investment.
There are a variety of factors that go into determining the listing price of a home, and many times there are significant benefits to replacing your roof.
Why Roof Replacements Are Necessary
No matter how well a roof is maintained, eventually it will need to be replaced. Shingles are covered in a layer of granules, which protect them from the sun’s UV rays. Rain, wind, snow, and other inclement weather slowly knocks those granules off, leaving the roof vulnerable to UV damage. Eventually, that UV damage will cause the shingles to fail, and make a roof replacement necessary.
Metal, synthetic slate, and other roofing materials are equally susceptible to weather damage, and will also wear down over time.
The lifespan of a roof can range from 20-100+ years depending on the material it is made of. With traditional shingle roofs, you should start to anticipate the need for some roof work in the near future.This is why a roof replacement may be requested by potential buyers, or recommended by real estate professionals.
If you find yourself in this position, there are a number of ways a roof replacement can increase the value of your home, which is beneficial when trying to sell.
Higher Asking Price
Replacing your roof before listing your home on the market can be seen as a huge benefit by potential buyers because it signals that the home has been well taken care of.This may boost buyer confidence, and confident buyers are more likely to pay a slightly higher asking price, because they know they won’t have to turn around and invest in a new roof in the near future.
Many new roofs also come with extended warranties that can be transferred to the new owner. This gives homebuyers the confidence that if something does go wrong with the roof, it will be taken care of without incurring additional costs.
When a seller invests in a new roof prior to selling the home, they are likely to recoup between 60- 70% of their investment, and are more likely to receive full-priced offers on their home. If your roof is in need of repair or replacement, you may be forced to negotiate lower than you hoped to get a buyer to close.
Since the first thing many people are looking at when buying a home is its outside features, curb appeal is a huge asset. A new roof can significantly boost the curb appeal of your home, as it signals a well-kept exterior that is pleasing to the eye. In addition to a new roof, there are also other ways to increase your curb appeal when it comes to the roof.
Removing leaves and debris, taking down Christmas lights, cleaning off bird droppings and other stains, and making sure your gutters are in great shape are all effective ways to boost the curb appeal of your home and catch the attention of potential buyers.
Ease For Homebuyer
Potential buyers appreciate the ease of maintenance that comes with a new roof because it ensures that they won’t be faced with the need to replace, or even repair it, in the near future. The roof replacement is also an added benefit if a bidding war occurs.
In cases where homebuyers are deciding between a home with a new roof or a home with an old roof at similar price points, they will tend to choose the home with the newer roof. This is because a new roof brings peace of mind, as well as the added value to the home.
ROI On Your Roof Replacement
There are obvious benefits to replacing the roof on your home prior to listing it, but there are also situations where it may not yield as high of a return on investment (ROI). This can be due to a variety of factors including market conditions and the original condition of your home.
Type and quality of your current roof
The biggest factor to consider when calculating the ROI of a new roof for your home is its current condition. If your roof is in need of extensive repairs or a total replacement, then a roof replacement will have a significant and positive impact on the value of your home.
However, if your roof is fairly new or recently repaired, and has no known issues, a roof replacement isn’t as necessary since it won’t boost the value of your home enough to make a significant impact on your home’s value.
The type of roofing materials you choose to install, and their projected lifespan, can also make a difference in the long-term value of replacing your roof.
- Asphalt shingles last between 25-50 years with proper care and maintenance.
- Well-maintained unpainted metal roofs can last 70+ years, and painted metal roofs last 40-50 years.
- Synthetic slate roofs can last 100+ years if cared for properly.
Working with a real estate agent or local home appraiser can help you determine which roofing material will deliver the best ROI when you sell your home.
Area Market Conditions
Housing market conditions in your area can have a significant impact on the value of home renovations. Depending on your region of the country, and specific neighborhood of your home, the ROI of certain home renovation projects fluctuate. Since buyers are usually attracted to neighborhoods or areas and not individual homes that stand out, one mistake homeowners often make is improving their home well above the area standard. While these homes often get more attention than their counterparts, that attention doesn’t always equate to a higher closing price.
The best way to determine the best plan of action for your roof is to get advice from a local appraiser and/or real estate agent who are familiar with the local market and how it responds to specific home renovation projects.
The specifics vary from state to state, but property owners are usually legally required to disclose certain information about the property that could negatively impact its value. An issue such as a leaky roof could fall under this category if the homeowner is aware of the problem prior to closing the sale.
Make sure to check state and local laws when it comes to disclosure requirements, because in some areas, roofing disclosures are legally mandatory. Virginia laws don’t require disclosure when it comes to the roof, but no matter what requirements exist in your area, always disclose the condition of your roof to the buyers of your home.
Not only is it the considerate thing to do, but it could also save you from legal action being taken against you if the new homeowners are surprised by roof damage, even after they move in.
Cenvar Roofing & Your Roof Replacement
If you are about to list your home for sale and need to find a roofing contractor to conduct a roof replacement, look no further than Cenvar Roofing! We are a professional roofing company that specializes in roof repairs and roof replacements of all types. We appreciate the value that a brand new roof adds to a home, and work hard to make sure that we respect the value of your dollar with our hard work.
If you have questions about the roof replacement process, or would like to schedule a further conversation with one of our team members, schedule your free consultation today.