When you are looking to buy or sell your home a new roof replacement is a great marketing tool. Buyers will appreciate a new roof because they know the average roof will last about 20-30 years. When purchasing a new house comes a lot of unexpected expenses, most new home buyers can’t handle another large expense like a new roof replacement on top of a down payment. Some clients may not even attempt to put an offer in on the home if they know it needs a new roof replacement.
How does a new roof affect home value?
You will need to figure out some key factors to see how much a new roof replacement will increase the value of your home such as, your roof condition, the real estate market, and feedback from potential buyers. With our experience we have gathered information on how a roof replacement will add value to your home, which factors will make it a smart investment, or even how it may reduce the value. If after reading this you decide that a new roof replacement is worth it and will allow you to get top dollar for your home, we invite you to explore our shingle collection and your options.
There are many studies that have been done on how much value a new roof will add to your home, one of which stated that the average homeowner will spend around $22,500 on a midrange roof. This new roof replacement would add an increase to the home value of about $15,500, this works out to be about a 68% investment.
Another study that was conducted by NARI (National Association of the Remodeling Industry) concluded a much larger percent return of 109%. This would mean you would make a profit on your new roof replacement. Putting on a new roof is clearly a smart investment, but how would you know if a roof replacement will generate a 60% return or if it will bump-up your current home value? The three major factors that will help you answer this question are: The housing market in your area, the condition of your current roof, and the type of roof replacement that you choose.
- The Housing Market Conditions in Your Area: A roof replacement doesn’t always increase home value in every market. The best thing to firstly do is get some advice from a real estate agent and a local appraiser, they can help you understand the market conditions. Even if you don’t see a huge financial return, a new roof will more likely get you smoother negations, lower time on the market, and even a full price offer.
- Another factor to consider is the condition of your existing roof: Keeping your roof in good condition is one of the most important things you can do in maintain your home. It can be very unattractive to a potential buyer and may make them question what else you have not maintained in your home. Most home buyers expect the roof to be in good condition and if it is not they will likely pass on submitting an offer, or give a low ball offer. After purchasing a new home few people have the money or energy to have to undergo extensive repairs or a full roof replacement.
When you or the potential buyer get the home appraised they will undoubtedly notice the condition of your roof and will reduce your home’s value, depending on how mild to sever the damage is. However if your existing roof is only between 5-10 years old and in decent condition, a roof replacement may not benefit you much.
3. Choosing the right type of roof replacement can make all the difference: Your choice between different types of shingles, a metal roof, or slate will impact the return you receive on your new roof. Asphalt and Architectural; shingles range from $50-$80 per square, a Metal roofing system ranges between $100-300 per square, and slate coming in at a whopping $300-600 per square. Each type of roofing system has its own attributes and it’s up to you which one best fits your needs.
Something important to consider when choosing a roof replacement and other home renovations is the type of neighborhood you live in. In general you need to match your neighbored dynamic, there is no point in investing in luxury home features if no other home in your neighborhood has them. It is unlikely to get a full return on designer shingles if all you neighbors have less expensive shingles, your home value will not raise much above your neighbors.
On the other hand, if you live in an upscale neighborhood where many of the homes have metal roofs or high-end shingles it might be expected to keep up. Higher-end shingles will match to style of the homes exterior and interior materials used in many cases, and buyers can be discouraged by traditional cheaper shingles.
Will a Metal Roof Increase Home Value?
On average a metal roof coats around $38,000 dollars compared to a shingled roof of about $22,500. When looking at Saratoga roofing contractor’s home values increase percentage, a metal roof brought in a return of 60% and a shingle roof return of 68%. These numbers of course are just an average, you may get a full return on your investment. When considering a metal roof it is important to know how much it will increase home value and consider how a potential buyer will view it.
Is a new roof a good selling tool?
Although a new roof won’t skyrocket you home value, it can still help you sell your home much quicker and at a higher price. Any local roofing company will tell you that a new roof is a highly effective selling tool. In a recent NARI report 32% of realtors used the fact that a new roof replacement was done to the home to finalize the sale. Buyers are very attracted to houses with a new roof because they know it will save them time and money in the long run without any major issues or repairs. Can you spot the difference?
Keep in mind that potential buyers are looking for a well maintained exterior of a house, this usually gives insight to what the interior of the house looks like also. Even if it is not the most accurate reflection of the interior of the house, buyers will assume your roof reflects the investments you’ve made on the inside as well.