Does a New Roof Increase Home Value?
If you’re considering selling your home, you should know that a home with a new roof gives homebuyers peace of mind. You may ask, “Does a new roof increase home value?” The simple answer is yes, in most cases, a new roof will increase the value of your home.
Does a New Roof Increase Home Value Dollar-To-Dollar?
If you’re asking, “Does a new roof increase home value dollar-to dollar,” the answer is that replacing a roof usually does not increase the value of the home dollar-to-dollar. Of course, that doesn’t mean that it’s a bad idea from a financial perspective to have your roof replaced before listing your home. Here’s why.
A new roof is considered a major selling point for home buyers. Not only does it drastically increase the curb appeal, but a new roof from a reputable roofing company makes homebuyers bid with more confidence.
So, if you’re not talking about simply the dollar-to-dollar ROI, a new roof from a reputable roofing company does the following:
Makes the home more visually appealing
Reduces homebuyers worries about maintenance and replacement
Often leads to bidding wars
Attracts more interest
Reduces the time on the market
Besides these advantages, also remember that if your roof needs replacing or repairs, it can:
Delay closing
Reduce the potential buying pool (Example: Someone wishing to use a VA loan may not get their loan approved if an inspection shows that the home needs roofing repair.)
Decrease the value of the home from its expected value
Cause issues with homeowners’ insurance
Keep in mind, nearly 1/5 of sellers replace their roofs before listing, so to get an edge on the competition, it could be smart to install a new roof if yours is nearing the end of its warranty.
Does a New Roof Increase Home Value If I Hire an Experienced Local Company?
With an experienced and trustworthy local roofing company, in the Tennessee region, you should expect to recover just over 61% of the cost of the roof in the home’s resale value increase.
That’s just the dollar amount directly related to the cost of the roof. There’s a lot more to consider when you think about your home’s value though.
Most buyers simply won’t bid on a home that needs a new roof or roof repairs.
This can be because of requirements by the lender, insecurities about the home’s hidden damage, and the buyer’s simply dealing with enough stress from home-buying and moving to want to take on another hassle
Now, there is some research that indicates when you factor in all considerations and use a respected roofing company, replacing your roof could actually bring you in more money than you paid for the roof.
Does a New Roof Increase Home Value If I Do It Myself?
If you are not skilled at roofing, replacing your roof could actually decrease the value of your home. Consider that people sometimes create more problems when they replace their roofs and don’t properly install them or don’t properly install flashing or ridge vents.
Unless you are a skilled DIYer with experience and permits, you could be gambling quite a lot by replacing your own roof. Besides, when you replace a roof yourself, your roof won’t come with a warranty, which is what a lot of homebuyers are looking for when purchasing a home.
How Much Does New Roof Add to Appraisal?
The value that a new roof will add to your appraisal depends on a lot of factors. When you wonder, “How much does a new roof add to appraisals,” you must consider the following factors:
What is the condition of your roof currently?
Is your roof currently under warranty?
What type of material is your roof currently and what kind of materials will you use when replacing your roof?
Are you planning a tear-off roof replacement or do you plan to add a second layer on top of the old shingles with a roof over?
What is the housing market like in your area?
Do You Need to Replace Your Roof Before Listing Your Home?
RoofingCo.com offers free roof inspections in Chattanooga. So, if you’re asking yourself, “Does a new roof increase home value,” you’d be in a better position to answer the question yourself if you had your roof inspected.
Not only will this provide you with documentation about your roof’s health, but it will also help you make the decision.
