When it comes time to sell your house, many homeowners face the question, “Should I replace the roof before selling or leave it as is?” The short answer here is usually – yes, but it’s not always the easiest decision to make. Read on to learn the pros and cons of roof replacement at sale time, how much value a new roof adds and how to factor in the cost versus return on investment of a new roof.
8 Reasons Why You Should Replace Your Roof Before Selling
If you consider all of the things your roof does for your home, it makes sense why your roofing system has such a significant impact on the overall value of your home – and why roof replacement is such an essential factor to consider when selling your house. See below for a few of the reasons why reroofing is a good idea when selling your home.
- Enhanced Curb Appeal. Some buyers may not even decide to walk into a home that has an unappealing exterior, or worse just drive on by. Any good real estate agent will likely tell you a new roof provides instant curb appeal for all buyers and can be a powerful marketing tool when you’re trying to sell your home, it is an excellent way to get buyers interested in your home.
- Improved Energy Efficiency. Your roof is one of your home’s major insulators. Having a new roof means buyers can be sure of good levels of energy efficiency and heat retention, which equals lower power bills and better living conditions. This is always a plus for any buyer and can influence purchase decisions, especially when it comes down to choosing between two very similar properties.
- Move-In-Ready Sells. Providing buyers with a move-in-ready home is often a good selling point for those unwilling or unable to make these sorts of repairs when they move in. Marketing your home as having a brand new roof offers bonus appeal, potentially giving you an edge over your competition.
- Decreased Risk. Many prospective home buyers don’t like the risk of buying a home with an old roof that needs replacing because it means an instant addition to the “To Do” list after the purchase, which will require time and an unknown amount of money to complete.
- Removes The Unknown. The roof system represents a significant degree of the unknown as far as repairs go, you really don’t know how much might need replacing underneath (framing, insulation etc.) until it is taken apart. This is especially concerning if the roof has been in a state of disrepair for some time.
- Less Hassle For Buyers. A complete roof replacement requires professional contractors. It is not something you can complete on your own. If your house has a roof that’s degrading and falling apart, no one’s going to be able to pay attention to anything else. When it comes to roofs all buyers appreciate a new one because they know it will save them the hassle of reroofing further down the track.
- Boosts Sale Price. The state of your roof is a sginificant factor in determining the overall value of your home. This is reiterated by the fact that your roof is something that appraisers always closely consider when carrying out valuations. A shiny new roof shows buyers this home is well looked after and secure from the elements and that the roof will not need any attention for many years to come.
- Appearances Are Important. A home is one of the biggest investments many people make, they want a house that has been well-maintained and looked after. Even if it’s not an accurate reflection, it is a well-known fact that buyers tend to use the home’s exterior appearance to judge how well you take care of the home. They will sometimes assume that the condition of the exterior and roof reflects the investment and energy put into the rest of the home.
4 Consequences Of Choosing To Leave Your Roof As Is
The condition of your roof has the potential to jeopardise your chances of selling or of achieving the sale price you are seeking. Just a few of the risks of leaving the roof in a state of disrepair when selling are:
- Low-Ball Offers. Buyers will have to factor in the roof replacement costs into their purchase price. Because this cost is fairly uncertain at first glance, offers made might be significantly lower than what it would actually cost to complete the job. If your home is still on the market while other comparable homes in your neighbourhood are selling and at better prices, it is possible your old roof could be the reason why buyers are offering very low prices or just aren’t interested.
- Longer Drawn-Out Sales Process. Even after you have signed up an offer, builder’s inspections or further buyer inspections could mean the buyer decides to pull out if they find replacing the roof is more complex than first thought and a cost they are unwilling to bear. This means it may take longer to sell your property. Or if your roof is so bad it won’t pass an inspection, a new roof might be a pre-requisite for many buyers.
- Fewer Offers. It is common for prospective buyers to be put off by seemingly complex renovations, such as a roof replacement resulting in fewer offers on the table or none at all. This is mainly because most buyers can’t handle the expense of a new roof installation right after they’ve just purchased a home and will take a more cautious approach and not put in an offer on a home with an older roof at all.
- Incompatible Sales Goals. If you are aiming for a quick and easy sale and your target buyers are first-time or low-income homeowners, you may find that a roof that needs replacing is a hindrance in this market, and your buyers might not have the money to take on major repairs straight after the purchase. If you find yourself in this type of situation you may be unable to achieve your sales goals including desired price bracket and timeframes.
The Costs Involved In Roof Replacement
One of the first things you will do when considering a new roof is to work out how much a new roof will cost. To do this, you will have to research materials, figure out the true size of your roof, consider any roofing obstructions that you currently have (skylights, chimneys or vents) and likely get several installation quotes from suitable roofing contractors.
In New Zealand, Colorsteel will likely be your number one choice as it is for many. It is easy to install, low cost and comes in a wide range of colours and profiles. You can expect to pay substantially more if you want something else like clay or concrete tiles. A few things to keep in mind when calculating new roof costs are:
- The larger the roof, the more money a new roof will cost.
- Materials are usually sold per square foot.
- Larger roofs require more labour, therefore you can expect higher labour costs.
- Obstructions such as skylights, vents and chimneys make it harder, equaling more time and labour costs.
- The square footage of your home is usually based on the footprint of the house, not its roof area.
Cost vs Value Of A New Roof
One of the main reasons homeowners don’t want to replace their roof pre-sale is that it is possible that not all of the replacement costs can be recovered in the sale price. But it is important to consider that ‘value’ can be added in many ways and is not necessarily all about the costs involved.
It is important to remember it doesn’t matter how great the rest of the house exterior looks, a roof in poor condition is always going to impact your sale price. So logically, this leads us to thinking less about the apparent return on investment for a roof replacement and more about how much it helps you to gain a competitive edge in selling your house.
When thinking of selling and what larger renovation projects could add value to your home, many people naturally focus on redoing the kitchen or bathroom, often overlooking the potential of exterior upgrades. A new roof adds a level of instant appeal to new home buyers and can add the value of ‘certainty’ or ‘peace of mind’ to the home. Your new roof is shiny and new, under warranty, solid, watertight and won’t need any work for at least ten to twenty years.
This low hassle ‘value’ can be a winner with investors looking for an easy care rental, first-home buyers who don’t have the funds for costly repairs, older people who need warmth and reliability, and homeowners who can’t be bothered with these types of renovations in their busy schedules. As you can see, a new roof ticks a lot of boxes for a large section of buyers out there.
New Roof Return On Investment
Let’s get to the bottom line and talk ROI here – how much does a new roof increase home value? Sure, a new roof adds value in more ways than one, but when replacing your roof, there are still factors that can influence the ROI.
A roof in poor condition with leaks and obvious damage nearing the end of its life span undoubtedly decreases your home’s value and is definitely worth replacing. However, as with any investment, it’s more about how you go about it than why. There are at least three factors you need to consider when replacing your roof:
- The age and extent of the damage to your roof (if the roof is over 20 years old, it may not meet the new regulations for the building code anyway, and/or if the roof is leaking)
- The current housing market conditions in your area (asking the advice of your local real-estate agent is the best way to understand the current market conditions in your area)
- The type of replacement roof you choose (see below)
Investing in premium roofing materials, expensive products and flashy extras will not necessarily provide the home value boost you expect. For many buyers, a roof is a roof, there is no need to splash out on fancy roofing systems, expensive clay tiles, skylights or complicated alterations. A roof needs to be watertight, clean and fit in with the neighbourhood. The ‘extras’ will only cost you money that is unlikely to be recovered at sale time.
The best way to get a better understanding of whether or not you should replace your roof before selling your home is to talk to a professional roofing contractor. Getting good advice and an idea of the roof’s actual condition as well as an estimate of costs before putting your house on the market will allow you to better weigh up your options during the selling process. If you want to install a new roof to help increase your home’s value, contact the professionals at Action Reroofing today.
