It’s all anyone talks about: invest in real estate so you can earn equity. Well, the time has come to…
September 21, 2022
It’s all anyone talks about: invest in real estate so you can earn equity. Well, the time has come to sell your home, and you want to have the highest resale price possible so you can get a return on your investment— and rightfully so! There are many ways you can increase home value, including;
Fresh paint 🎨
Kitchen and bathroom upgrades 🚿
New appliances 🚽
Energy-efficient improvements ♻️
Well-manicured landscaping 🌳
But does a new roof increase home value, too? Let’s take a closer look to see if you could benefit from a roof replacement.
Will a New Roof Increase Home Value? If So, How Much?
There are two parts to answering the question on your mind:
Does a new roof increase home value? Yes.
Will you recoup your entire investment? Probably not.
It’s important to keep in mind that most home improvement projects don’t have a 100% return on investment (ROI). (A garage door replacement comes the closest at an average 93% ROI.)
If you complete a home improvement project with a 60-70% ROI, that’s usually considered a good investment. And according to the 2021 report from Remodeling Magazine, an asphalt shingle roof replacement has a national average ROI of 60.7%, which is pretty impressive.
Also according to Remodeling Magazine, the New England region has an even higher ROI on asphalt shingle roof replacements, coming in at 64.8%. The Pacific region comes in at an impressive 70.4%,
So while you may not get all of your money back for the roof replacement when selling your home, the project will still increase your overall home value by roughly 60% of what you paid.
Reasons You Should Replace Your Roof Before Selling
It isn’t always necessary to pursue a total roof replacement before selling your home. Sometimes, regular maintenance and repairs will do just fine, especially if your roof is still on the newer side or is even in the middle of its lifespan. But, consider a roof replacement based on the following factors:
1) Reaching the End of Its Lifespan
Asphalt shingles, which are the most popular roofing material in the country, have an average lifespan of 15-25 years. If your roof is more than 10 years old, a full replacement would be perfectly reasonable.
The lifespans of other roof materials are:
Metal: 40-70 years
Cedar Shakes: 20-30 years
Clay Tiles: 50-100 years
Slate: 100+ years
In many areas, you’re legally required to disclose the condition of your roof to a buyer, so they may get turned off from a sale knowing that they’d need to replace the roof shortly after moving in. A smart way to recoup some of the costs of a roof replacement is to replace it a year or two before selling your house (if you know you want to sell in the future).
2) Damage That Would Be a Headache for the New Homeowner
Again, since roof disclosures are legally mandatory in many parts of the country, you can’t hide and pretend that your roof is fine when it’s not. If you have persistent damage like frequent leaks or noticeable granule loss, it can be hard to sell your home.
Most prospective buyers don’t want to deal with damage right after moving in. (Unless they’re intentionally buying a fixer-upper.)
Plus, buyers using a Federal Housing Administration (FHA) loan or Veterans Affairs (VA) loan usually have to complete a roof certification. If the certification can’t confirm that the roof will be in good condition for at least two years, they may have to legally withdraw their offer.
3) Real Estate Market Conditions
The current state of the housing market can also play a big role in getting a roof replacement or not. You may be sitting with a 10-year-old roof, wondering which direction to go.
If it’s a buyer’s market and there are more homes than people looking to buy, then you need to stand out from the competition somehow. A new roof can add immense value to your home in this scenario.
But if it’s a seller’s market, where there are more people looking to buy homes than homes for sale, it’s much easier to sell a home quickly. If you’re on the fence during a seller’s market, you can probably get away with holding off on a roof replacement, as long as your roof doesn’t have significant damage.
3 Tips for Increasing Resale Value
Okay, so you’ve decided you want to get a new roof before selling your home, and you want to maximize your investment as much as possible. Follow these three tips to make sure your roofing investment doesn’t go to waste when you list your home for sale:
1) Transfer the Warranty (If Possible)
Many reputable roofing companies offer transferrable warranties. This means that even though the new homeowners weren’t the ones to purchase the roof, they could still reap the benefits of warranty coverage in case anything goes wrong.
This is a huge advantage for many prospective buyers and typically adds a few hundred dollars to the selling price— something that’s usually not a big deal to the buyer but can be helpful to the seller.
2) Use Midrange Materials
Find the sweet spot with materials when you schedule your replacement. Don’t opt for the cheapest 3-tab shingles or the most expensive slate. Instead, go with a solid, midrange option like architectural asphalt shingles.
The most important details are that the roof matches other homes in the neighborhood and helps the home’s energy efficiency. Most buyers don’t want to pay thousands of dollars more for a roof they didn’t pick out.
3) Advertise the New Roof as an Asset
Be sure your listing advertises your brand new roof! Don’t be shy because a new roof is genuinely a massive selling point for many prospective buyers. Make sure your real estate agent always fills people in on the advantages of having a home with a new roof— this is one way to help you get your full asking price.
Ready to Increase Your Home’s Value?
If you’re thinking about selling your home and decide that a new roof would help you sell for the highest amount possible, then you need to work with a reputable roofing contractor trusted by homeowners and real estate agents alike.
And if you live in Maryland or Virginia, ARCH Exteriors is the partner you need. We’ll take the time to perform a detailed inspection and confirm if a roof replacement is in your best interest. Then, we’ll help you choose the best materials to sell your home with ease.Reach out today for a free estimate!
About the Author
Your home is probably the most expensive thing you own. When you hire somebody to make improvements, you want high-quality work. In addition, you hope they’ll take the same care you would. You want someone with a good reputation, legitimate credentials, well established, using quality materials, and who charges a fair price.
For over 11 years, I have worked hard to provide all of those benefits to my clients. One of the major reasons we have been able to do that is our ability to keep highly qualified personnel. Our workers are well trained, properly motivated, and managed professionally.
I make certain that I convey measurable systems and procedures that our team understands and can readily follow.
Share This Article:
Quit Wasting time and money with terrible home contractors