Getting Ready to Sell Your Home? Don’t Forget Your Roof
Homeownership is an investment. Every repair project or upgrade tends to circle back to the question: is this worth it? The ultimate goal is to add value to the home over time and give the owner an edge when it comes time to sell.
As far as your roof is concerned, you have three options: repair, replace, or sell as-is. While there are certain instances when you can successfully sell a home with a damaged roof, this tends to be a mistake when looking to sell to the general public. In the end, there are several reasons why you should consider addressing your roof before listing.
1. First Impressions
A visibly damaged roof does little to add to a home’s curb appeal. Cracked tiles, missing shingles, or patches of algae are hardly someone’s idea of a Dream Home. If your house does not look inviting from the outside, a potential buyer may not even bother viewing the inside.
2. Buyer Cash Flow Concerns
In addition to the inconvenience of facing a major project upon moving in, many buyers simply cannot afford a new roof. Most are using bank financing to purchase the home in the first place and may not have the cash on hand to repair or replace the roof after buying.
3. Inspection Red Flags
Lenders will typically require both an inspection and appraisal before signing off on a new home loan. The quality of the roof is a significant area of focus for the inspector.
He or she will note any damage and, if the issue involves water leaking into the home, the report may indicate the potential for water damage elsewhere in the home. This can significantly reduce your home’s overall value and may even result in the bank denying the mortgage to the buyer.
4. Trust Issues
Most states require you to disclose any significant issues with the home on a residential property disclosure statement. “Roof damage” may lead to suspicions of other damage around the home, whether it is listed on the form or not. This can affect the appraisal process and result in a low-ball estimate of your home’s worth.
5. Energy Efficiency Bonus
In addition to buyer peace of mind and aesthetic value, a new roof adds to the overall value of the home by increasing its energy efficiency. A brand new roof with a proper ventilation system will stress the home’s heating and cooling system less, leading to lower energy bills and a more comfortable atmosphere inside the home.
As a result, houses that are energy efficient tend to sell more quickly and at a higher value than homes that are not.
6. Investment Returns
A new roof does, in fact, offer a relatively high return on investment. Cost vs. Value reports from 2020 show an average ROI of about 65%. However, a 2019 report Remodeling Impact Survey found a return on investment of up to 109%.
This means that homeowners who had replaced their roof with a new asphalt shingle system not only recouped their entire investment, they even turned a slight profit. In this same report, 33% of realtors also attributed the new roof to help them close the sale.
Graph courtesy of https://remodelingdoneright.nari.org/
What if My Roof Is In Relatively Good Shape?
A new roof can be costly, and it is wise to fully explore the strength of your investment before undertaking any major changes. Many homeowners may wonder if a new roof is entirely necessary, especially if the roof is in decent shape.
In this case, it is still a good idea to consider the roof’s age and average lifespan. Generally speaking, asphalt roofs are designed to last between 15-30 years, but this does not mean the roof will actually last that long.
A good rule of thumb is to replace your roof if it has less than ten years left in its lifespan. Doing so will allow you to sell the home more quickly and at a higher price, even if the older roof was in good shape.
Keep in mind that there is competition within every marketplace, including the real estate market where you will be listing your home. The final return on investment will depend on general housing market conditions. You will want to thoroughly discuss and prepare for market conditions with your realtor to determine what home renovations to pursue, including any roofing maintenance or replacement.
J&K Roofing and the Home Selling Process
If you are looking to sell your home and are unsure as to the condition of your roof, J&K Roofing offers free inspections in the Denver Metro, Front Range, Colorado Springs, and Northern Colorado areas. Additionally, we offer a detailed certification service that your realtor can use to facilitate the selling process. Contact us today to see how we can help you get your home ready to sell!