How Does a New Roof Add Value to a Home?
May 01, 2020Getting a new roof can be used as a powerful tool for marketing your property. If you’re looking to sell your house, your real estate agent has probably told you how getting a new roof will help increase the value of your home. Not only will potential buyers appreciate the newly installed roof because it lessens their costs of fixing up the place but it also makes your home look great on listings.
A roof replacement might cost you but if you have plans of selling your property in Iowa, then it might be a smart choice. Older roofs that are dilapidated, damaged, and nearing the end of its lifespan will significantly lower your real estate value. The cost of a new roof is an investment.
Aside from just increasing the price of your property, the new roof also attracts more buyers. You’ll likely be able to sell your home faster and at a better rate if you present it properly than if you didn’t make any effort. However, getting premium shingles might not be the way to go. You can’t just get a more expensive roof and expect to raise the cost of your property right away. It can be difficult to say just how much a new roof will add value to your home. There are definitely many other factors that real estate agents and potential buyers consider when calculating the cost of a property. Aside from the condition of your roof, market conditions play a huge part in housing cost.
If you want to know whether getting a new roof will be a smart investment, here are some of the things you need to know about what adds and reduces home value.
How Much Does a New Roof Increase Home Value?
There is a hodgepodge of information that you can find on house pricing when it comes to roofing. A study has found that on average a new roof can cost around $22,000 and increase home value by more than $15,000, giving homeowners a 68% ROI. This doesn’t seem very appealing and you might be thinking of skipping the hassle of getting a new roof altogether if you’re just going to end up paying more and earning less. However, the National Association of the Remodeling Industry also released a report that showed how new roofing on a property can get homeowners a 109% ROI.
The things that close the gap between a loss and a profit have to do with these 3 factors: roof condition, market conditions, and the roof replacement.
Existing Roof Condition
A basic aspect of home maintenance is keeping a roof in good condition. Many people expect a home to be in good condition when they plan to buy it. If not, then they would expect to have to pay a really low price on it. Potential buyers have to think about the cost of repairs and when considering the properties they purchase, would want to have to spend less on having to repair or replace plumbing, floors, and roofing.
Aside from seeming like an extra expense for potential buyers, a poorly maintained roof is a sign of other possible maintenance issues. When people see the poor condition of the roof, they will also start to think about other parts of the home that may not have been maintained as well. However, if your existing roof is in a good condition, there is no need to get a brand new roof to show off to buyers.
Real Estate Market Conditions
Unfortunately, getting a new roof does not automatically increase the value of a property in every market. Different areas have changing market conditions that can affect how home renovations are seen in the eyes of buyers. The best thing to do is to get the advice of your local appraisers and trusted real estate agents to get an idea on what renovations are necessary to increase your home’s market value.
New Roof Installed
Lastly, if you went ahead and got a new roof, the type of roof shingles you have will affect your home value. On average, homeowners can spend $22,000 on a new roofing Story City IA but spending less is definitely possible. You can get a new roof for as low as $7,500. There is a huge difference. You might think that those who spent more earned a lot more when they sold their homes but when it comes to the increase in their home price, those who spent less actually earned a higher return.
Spending more on your new roof does not directly translate into better sales. While these are more attractive and might actually benefit new buyers more, a more affordable but presentable roof will still do the trick.
Cari S. 