Homeowners replace their roofs for a variety of reasons, from repairing severe storm damage to giving their home a “facelift”. Others still may think about a new roof as an investment – that is, to increase the value of their property.
Especially for those preparing to sell their home, the latter reason is a common motivator for looking into new roofing. But for these folks, the decision naturally comes down to the big money question – will the appreciation of my home be worth the cost of the new roof?
It depends – everyone’s favorite answer. The reality is that the value of a new roof varies according to several factors, many of them dependent on contemporary market trends.
In this article, we’ll discuss the relative expense of replacing a roof and outline the important elements to consider when determining the value of a new roof as an investment.
The Cost of a New Roof
Most homeowners have dealt with roof repairs, which can run from a few hundred dollars to a couple thousand depending on the damage. Fewer homeowners have experience with entire roof replacements, which cost even more.
According to Forbes, the national average cost for roof replacement is around $8,000, with the lower end of the range hovering around $5,000 and the higher end around $11,000.
The three biggest variables influencing what you’ll pay for a new roof are labor, material used, and square footage. Labor rates vary by region but typically fluctuate between $1.50 to $3.00 per square foot; nicer material, such as stone, naturally drives up replacement price; and the greater the square footage, the more you’ll pay for the other two factors.
When managing a roof repair or replacement, seeking professional help is critical to savings and execution. Our experts can identify any issues with your roof and provide long-term planning. Learn more about our consultations here.
RELATED: Roof Repairs: Common Problems and Costs
How Much Value Will My Home Get from a New Roof?
So, now that you have an idea of the costs associated with a new roof, what is the payoff?
Recent reports on this renovation suggest mixed returns, from 68% of your investment all the way up to 109%. Such a mixture likely results from the aforementioned range of factors that determine new roof value, including existing condition, market conditions, and quality of the new roof.
The newer your existing roof, the smaller the return upon replacing it.
For example, if your roof is only three years old and you’ve maintained its condition, a new roof will hardly add more value to your home. On the other hand, if your roof is over fifteen years old, replacing the margin of value between the old roof and a brand new one will be much greater.
Depending on real estate market conditions, a new roof may not earn your home a higher appraisal. Especially in a buyer’s market, a new roof may not earn as much a bonus because buyer’s have more options.
To determine how an investment in a new roof may fare under your current and local market conditions, always consult a trusted appraiser in your area.
Quality of New Roof
Higher-quality shingles or material may fetch a higher resale value, but keep in mind the added premium you’ll pay for these choices. The higher costs will eat into any expected return.
A good rule is to keep your replacement costs around the average of your neighborhood. This helps to ensure that you don’t devalue the quality of your roof in comparison to other homes, but also that you don’t overpay for quality that won’t add value. For instance, designer shingles on a starter home in a non-luxury neighborhood may not influence buyers looking in the area.
Selling a Home: Is a New Roof Worth It?
While the monetary return of a new roof will vary, the renovation may pay off in other respects, namely as a selling tool.
According to one survey of realtors, new roofing is the number one exterior home improvement that appealed to buyers. That fact should come as no surprise, given the amount of visual space taken up by a roof (i.e., curb appeal) as well as the threat of repair costs that an older roof poses.
Therefore, a new roof can bring in new buyers to increase your selling options while also making your home more attractive than otherwise comparable houses on the market. Whether or not buyers also agree to pay more for the home again depends on those variables previously listed, but selling you home quicker comes with its own value.
Buying a Home: How to Negotiate a New Roof
On the flipside of a sale, you may leverage a roof in poor condition into a discount or even a brand-new roof as a buyer.
If you’re interested in replacing the roof of a prospective home, you should first hire a professional inspector to assess any existing damage or liability. If damage or liability are present, this assessment will give your request for a new roof more authority when you negotiate with the seller.
When it comes to negotiations, there are a few options.
First, you can make your offer contingent on the current owner replacing the roof. However, this means that the current owner will have to expend the cost and effort on the replacement, which may make them averse to your offer.
Second, you can ask for a reduction in the overall home price to cover the costs of a replacement. In this case, the owner will essentially pay for the replacement through their discount without having to expend the cash, but you will have to oversee the renovation project.
Lastly, an owner my keep the original sale price of the home but front the cash for replacement after the sale.
Depending on the circumstance of each sale, the seller and buyer may prefer one of these particular transactions over the others. However, knowing your options provides flexibility for negotiations.
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Inspecting Your Roof Like a Pro
How can you ensure a quality inspection for a home’s roofing?
Step 1: Find a Reputable Roofing Company
The inspection you receive will on be as good as the company you hire, so make sure to choose a service provider with a proven track record of quality.
Advanced Consulting is a leading provider of turnkey commercial and residential roofing solutions in the Denver, CO area. Our expertise will provide you with a thorough, accurate inspection of your roof to prepare you for the next steps in repair, replacement, or negotiation.
Step 2: State Your Case
When hiring a roofing inspector, make sure to establish your reason for requesting the assessment. For instance, if you’re looking to purchase the home with the roof in question, let them know so that they may keep an extra lookout for damages or potential liabilities.
This will guide the inspector to backing your case, whatever that may be.
Step 3: Get A Quote
Upon inspection of the roof, you should secure a quote to understand the potential costs. Especially if negotiating with a seller, this will ensure that you receive fair compensation should they agree to pay for a new roof.
You may even consider getting multiple quotes, which will ensure you’re getting a fair price from the contractor.
Step 4: Consider the Warranty
Exercising caution can protect you from unforeseen liabilities, particularly when it comes to the literal roof over your head.
Most roofing contractors offer warranties on their services, which helps to guarantee protection from poor workmanship or accidental issues.
Step 5: Ensure It’s Legally Binding
Just like any other quote, you want to ensure that it is legally binding. That way, you won’t encounter surprise fees when it comes time to pay.
RELATED: What to Do If Your Roof Insurance Claim Is Denied
It’s fun to watch home renovations on HGTV, but less so when they’re happening in your own home. Installing a new roof can be especially taxing, which is why up-to-date roofs can prove so valuable for your property’s value, whether selling it or not.
Just remember, there are a range of considerations when thinking about installing a new roof, all of which will affect the pay off on your investment. Make sure to weigh these variables carefully, or you could be dealing with roof regret.