When getting ready to sell their home, most homeowners consider upgrades like a kitchen remodel, repaved driveway, or updated landscaping. But what about a roof replacement?
Since most roofing materials have pretty long lifespans, many homeowners treat their roof as “out of sight, out of mind.” However, prospective buyers have high standards because they don’t want to deal with expensive issues shortly after moving in.
Buyers get a brand new roof out of the deal, but what do sellers get? Does a new roof increase home value enough to make it worthwhile for the seller? Let’s find out.
How Much Does a New Roof Cost?
To start, we need to uncover how much the upfront investment of a roof replacement would cost homeowners looking to sell their homes. Roof replacements are often a significant investment for anyone, especially if you don’t have an insurance claim to help cover costs.
The cost of a roof replacement can vary depending on factors like:
- Roof material
- Roof size
- Roof scope
- Labor costs for the contracting team
However, for our purposes today, we’ll be working with the average numbers across the U.S. for mid-sized homes. For the following popular roofing materials, you can expect to see these average price tags:
- 3-tab asphalt shingles (most popular): $12,100
- Metal roofing: $30,600
- Architectural shingles: $17,500
Keep in mind that these prices will range greatly based on the above factors. You could get your roof replaced for much less or more— the best way to find out is by getting free quotes from a couple of local roofing contractors.
The Return on Investment (ROI) You Can Expect
You’ll rarely ever see a 100% return on your investment for any home renovation project. But, if the ROI is above 60%, that’s usually considered to be a valuable investment.
When you get a new roof replacement, your home value will usually increase by $10,000+ depending on the material you choose. This typically evens out to a 60-68% ROI, which is definitely a pretty impressive number.
It might be intimidating to think about not getting a 100% return, but the majority of home improvement projects are intended to increase home value first and foremost. So, like a kitchen remodel, finished basement, or improved landscaping, a new roof can significantly boost your home’s resale value before you list it.
Reasons to Consider a Roof Replacement Before Listing Your Home
Not every home going up for sale warrants getting a new roof. Oftentimes, basic repairs can ensure your roof is in top condition if it still has many years left on its lifespan. However, there are a few reasons that you may be better off with a total replacement. They are:
- Your roof’s condition/age
- The real estate market
- Potential ROI
1) Your Current Roof’s Condition
If your roof is only a few years old, it’s totally reasonable to schedule maintenance and any needed repairs before listing your home. As long as the roof is projected to last for a decent amount of time, most people will feel comfortable buying.
However, if your roof is older or poorly maintained, you would get a much higher home value with a new roof. No potential buyer wants to deal with leaks, water damage, or other maintenance issues shortly after moving in. Home appraisers will notice if your roof is in poor condition and value your home accordingly.
Keep your eyes peeled for these classic signs of a worn-down roof that needs replacement:
- Missing shingles
- Cracked or curling shingles
- Outside light shining into the attic
- Moisture and mildew in the attic
- Water stains on ceilings or walls
- A sagging roof
- Hail damage
- Peeling exterior paint
2) State of the Real Estate Market
Another consideration that might impact your decision to opt for a roof replacement instead of repairs is the current state of the real estate market.
If it’s a buyer’s market and you’re on the fence about getting a new roof, the total upgrade could help you stand out from all the competition. On the other hand, if your roof could go either way and it’s a seller’s market, you can expect your home to sell pretty quickly even if it’s not in perfect condition.
Another thing to consider is your region. According to a 2019 report, new roofs add the most home value (77% ROI) in New England states:
- New Hampshire
- Rhode Island
On the other hand, the lowest return from a new roof (65%) occurred in the East North Central Region in these states:
3) You Can Use Less-Expensive Materials
Lastly, you may be able to get an even higher return on your investment if you opt for a quality roof replacement with less-expensive materials. Sometimes, a shingle replacement can only cost around $7,500~ depending on your location and the manufacturer.
Spending less on a roof replacement can actually still reap a high return. Even a basic replacement with no luxury materials or features (like skylights) can increase your asking price by $10,000+.
Less-expensive shingles are also a great choice if your home is a starter home in a modest neighborhood. There’s no reason to invest in luxury features if your home value can’t rise very far above that of your neighbors.
However, keep the other side in mind. If you live in an upscale neighborhood, higher-end roofing materials could be expected so that your home fits in with your neighbors.
Work With a Real Estate Agent and Trusted Roofer
At the end of the day, a skilled real estate agent will be able to give you advice regarding the standard of other homes in your neighborhood. And hiring a trusted local roofer to perform a free inspection will clue you in on the state of your roof.
If you’re getting ready to sell your house in North Carolina, look no further than Scro’s Roofing for all your roofing questions. Contact us today to schedule a free inspection, and our honest team will provide convenient maintenance, repairs, or a full replacement.