A new roof can be a powerful marketing tool when it comes time to sell your home. On the other hand, an old, damaged roof can drive down interest in your property. But how much difference does it actually make? Read on to learn how much a new roof can increase the value of your home.
Values Can Vary
In almost every instance, a new roof will increase the value of your home. How much, however, depends on certain factors.
According to Remodeling’s Cost vs. Value Report, the average homeowner will spend about $22,000 on a new mid-range quality asphalt shingle roof. This investment increases the property’s value by about $15,000, on average. That comes out to 68% of the investment.
With that said, other research has shown that a new roof can add much more value to a home’s appraisal value. In a recent remodeling impact report, The National Association of the Remodeling Industry (NARI) found that new roofs deliver a 109% return on investment, which means you can actually make a profit by installing a new roof.
While adding a new roof to your home is clearly a wise investment, your return on investment will depend on specific factors, including the state of the housing market in your area. It will also depend on the type of roof you choose and the condition of your existing roof.
The Type of Roof
Your choice of roofing shingles can affect the return you receive on a new roof. In general, any home renovation you make needs to match your neighborhood. There’s not typically much point in investing in a luxury roof for a starter house because your property value usually won’t rise much above the value of other homes on your street. You’re unlikely to get optimal full value on designer shingles if all your neighbors have cheaper shingles on their roofs.
On the other hand, in upscale neighborhoods, high-end shingles are often expected. Designer shingles will usually be consistent with other materials used on a house’s interior and exterior. In these instances, buyers will be turned off by traditional shingles if they see homes in the same neighborhood with more expensive designer shingles.
Bear in mind that roof replacement is a much bigger undertaking than a new paint job or replacing bathroom tile. Very few home buyers will be interested in reroofing a new home just because they don’t like the color of the shingles. Instead, they will simply walk away without putting in an offer.
Since so much depends on your home’s neighborhood and each buyer’s expectations, you will want to carefully consider these factors when deciding on which type of roof to install on your home. Still, increasing property value isn’t everything; if you want designer shingles, it makes sense to get them, especially if you plan to stay in your home for the next several years.
Your Existing Roof
Basic property maintenance includes keeping your roof in good condition. If your roof looks old or damaged, it will seriously concern a prospective buyer. In addition to worrying about the cost of replacing the roof, they will wonder how many other things in your home are not being properly maintained.
Few home buyers have the energy, time and money to undergo major roof repairs after they’ve paid for a new home. Make no mistake, most will demand that a roof is in good condition; if it isn’t, they will be reluctant to buy. Home appraisers will also notice if your home’s roof is in rough shape and will lower your property value accordingly.
If you are trying to sell a house with an old or damaged roof, replacement is a very smart investment. If you don’t change your roof, you will turn off many buyers. What’s more, interested parties will probably expect a discount to cover the cost of roof replacement. It may even be legally required to replace a roof that is in especially poor condition.
Need a new roof for your home? A to Z is ready to help. Hoping for cost-friendly repairs for weather-related damage? We can do that too. At A to Z, we’ve developed a widespread, well-earned reputation as one of the state’s premier roofing contractors by providing expert workmanship and attentive, honest customer service. Contact us to learn more.