If you’re planning to sell your home in the foreseeable future, you might wonder if replacing your aging roof will greatly impact your home’s selling price. How much value does a new roof add to a home? Scroll down to learn whether replacing a roof provides a good return on investment (ROI), the factors that impact a roof’s ROI, and more.
The ROI on a New Roof
First, it’s important to note that many factors will impact a roof’s ROI.
For example, what material is the roof? Whether you choose asphalt, composite, metal, wood, or some other material will impact its beauty, how long it lasts, its durability, and more, so obviously it will also affect your home’s value. In addition, the housing market will likely have a huge effect on the selling price. The economy, interest rates, and the current housing stock in your area will all play a part in how much you’re able to get for your home.
Second, it’s important to consider all the different ways a roof can add value to a home. Consider the following:
- Curb Appeal: Your home’s exterior appearance can greatly impact buyers’ interest. A new roof will help your home make a great first impression.
- Maintenance: A new roof made of a high-quality material will have fewer maintenance concerns. An old roof with leaks and other issues, on the other hand, might raise concerns about how well you cared for the house as a whole.
- Energy Bills: Roof material, insulation, shingle color, and more can affect heating and cooling costs. If buyers in your area are concerned about energy efficiency, a new roof might help you snag a higher offer.
- Durability: Your roof’s lifespan will depend on the material you choose and how well it’s installed, but in general, a new roof signals to potential buyers that they won’t have to worry about replacing the roof for many years to come.
- Selling Boon: For obvious reasons, buyers are attracted to homes with new roofs. According to an NARI report, 32 percent of realtors use new roofs to finalize sales.
Clearly, a roof can be a powerful marketing tool for a variety of reasons, but that doesn’t mean reroofing before a sale is always a smart idea.
How much value does a new roof add to a home?
The numbers are mixed, but generally, homeowners can expect to see their home’s value increase by about 60 percent of the roof’s purchase price. You should not expect to see a 100 percent return on your investment. And, of course, your ROI will depend on the material you choose. For example, asphalt roofs have an estimated 61 percent ROI while metal roofs have an estimated 49 percent ROI.
If you’re planning to sell your home in the foreseeable future and considering replacing your roof, carefully consider three factors:
- Your Roof’s Condition: If your roof is several years old but in relatively good condition, a new roof likely isn’t a great idea. Buyers would prefer to pay less for a home with a solid (though slightly dated) roof. On the other hand, if your roof is quite old and damaged, a new roof is a more secure investment.
- Market Conditions: Your region and the general housing market can have a big impact on the value of home renovations. Consider consulting an experienced real estate agent to learn how old and new roofs are performing in your area.
- Your Chosen Shingles: In general, your home renovation choices should match your neighborhood. If you choose luxury designer materials but you don’t live in an upscale neighborhood, you’ll struggle to get a solid return. On the other hand, if you use low-quality materials in an upscale neighborhood, buyers may pass on your property. Think about buyers’ expectations when selecting materials.
A new roof is a huge investment, so weighing your options carefully and having realistic expectations for your ROI is important.
If you live in southwest Missouri, contact Taylor-Made Roofing for help. With over 20 years of experience in residential and commercial roofing, Taylor-Made Roofing is a company that you can trust with all of your roofing needs. Our family-owned business offers quality services, a reassuring warranty, and free estimates. For more information, please give us a call at 417-326-8778 or contact us online. We look forward to hearing from you!