If you’ve recently thought of selling your house, you probably want to know: will a new roof increase appraisal value? The truth is that buying a new roof will improve the look of your house and help it sell for more money.
The reason is that many people will be less likely to buy a house with an older, damaged roof. If they decide to purchase yours, it will cost them more than one with an older roof because the repairs will be more significant.
So, how will a new roof increase appraisal value? Let’s find out below.
A New Roof Improves Curb Appeal
Curb appeal is how your house looks from the street, and a new roof helps to improve this. Replacing an old, worn-out roof will give the exterior of your house a fresh look that will significantly improve how it looks from the outside. This will help attract potential buyers who are looking for homes with improvements.
A New Roof Adds Energy Efficiency
Aside from making your home appear better on the outside, a new roof will also improve the inside of your home. A new roof will insulate your living space, thus making it more energy-efficient and saving you money over time.
This is something any buyer interested in purchasing your home will find appealing. A home that’s energy-efficient is a big win to the buyer in today’s market.
A New Roof Reduces the Need for Heavy Maintenance
The frequent calls for heavy roof maintenance are costly and can make the homeowner feel overwhelmed. Replacing an old roof will remove this headache and save you money over time through less frequent repairs, which will help your homeowner’s insurance premiums stay low.
In addition to being a big win for potential buyers, it also allows you, as the seller, to have one more item checked off of your list of things to do before the sale. Having a new roof will give you peace of mind, knowing that your home will be on the market with fewer hassles for everyone involved in selling it.
A New Roof Improves Warranty Claims
Getting a new roof for your home before selling it means subscribing to a new roofing contract and warranty. This will provide you with some extra protection as a homeowner, and if anything happens to the roof over the next few years (such as leaks), it will be covered by your warranty.
Any potential buyer will appreciate a new roof because they know they’ll have little to worry about concerning licenses and warranties.
How Much Does a New Roof Add to Appraisal?
While it’s true a new roof will add value to your home’s appraisal, sometimes it’s best to stop and ask how much. Not all new roofs add significant value to old homes, so it’s best to do the calculations beforehand.
According to research conducted by the housing market firm Zonda, a new roofing project in an average home in the U.S. improves the home’s value by about $17,200. This translates to about a 60% appraisal rate when other factors are held constant.
When done correctly, new roofing could attract handsome profits for homeowners, with some studies approximating up to 110% return to homeowners.
However, it’s essential to keep in mind that these figures will not apply to all homes and roofers.
For example, if your home is already worth over $500k, you will need a new roofing job costing at least $20k for any appraisal benefits. Additionally, if your home is considered a “newer” property, you will receive limited benefits from adding a new roof.
How to Optimize the Returns from a New Roof Installation
Not all re-roofing projects will attract the same amount of returns. You’ll need to check every vital factor before deciding to proceed with a new roof project.
Some of the things to consider to optimize the returns from a new roof installation include:
Your Home’s Current Condition
The new roof must meet specific criteria of the appraiser, including age, style of design, and finishings.
If your home is already attractive with features such as skylights or an intricate roofline, there will not be any improvement in its appraisal value.
The Housing Market
In some housing markets, the return will be higher than others mainly because of the demand. If you have an easily sellable house in your market, adding value by installing a new roof will increase its appraisal value.
So, Is It Worth It?
As long as there are no significant changes that will require dismantling and reassembling an entire roof system, such as changing from asphalt shingles to tile, then the cost will be worth it in most cases.
It will still take a lot of time to get your roofing contractor in for an inspection and estimate, but even if you don’t change anything on your roof except replacing some old shingles, just doing that will add value to your home’s appraisal value.
New Roofs are Money Well Spent: Get Yours Replaced Today!
Prior to reading this article, you may have been wondering: Does a new roof add value to an appraisal?
New roofing projects will always end in success if you get them done by professionals. They’ll not only replace the roof with exceptional skills but also evaluate underlying conditions to help optimize returns.
If you’re considering a new roofing project before selling your home, you can always work with a roofing contractor to get a home appraisal done. Your new roof will add value whether you plan to sell your house in the future or not. Contact us today for a free damage assessment to get your roofing project started.