Does a New Roof Raise Your Home’s Appraisal Value?
Updated June 2020
You may get a different response to this question, depending on who you ask or the study you reference. Other considerations may also be on your mind. Spring is usually the time of year you might plan to tackle those home remodeling projects the winter rains kept at bay.
Or, you may be looking at an even bigger change, selling your current home and moving to a new one. With the economy in flux and businesses just starting to open up, you may be looking for your strongest options to improve your home’s resale value. One question may come to mind. Will a new roof increase my home’s appraisal value?
Return On Investment Depends On More Than One Factor
According to Marin realtor, John Skinner, different factors need to be considered:
“Even if a roof is older, if the roof is in sound condition and looks good, other projects may be a better resale investment, such as an upgraded kitchen or bath. However, if the roof is old and shows signs of wear, it could discourage potential buyers by hurting your curb appeal, in addition to looming as a big investment to repair or replace.”
Last year, a quick look at the Remodeling’s Cost vs. Value Report 2019 estimates that the national average of a complete roof replacement with asphalt shingles at a job cost of $22,636, has a resale value of $15,427, so you recoup 68.2% of your investment. A replacement using metal materials at a job cost of $38,600 has a resale value of $23,526, so you would recoup 60.9%.
This year, the same source shows that things have changed, but not a great deal. A complete roof replacement with asphalt shingles at a job cost of $24,700, has a resale value of $16,287, so you recoup slightly less than last year at, 65.9% of your investment. A replacement using metal materials at a job cost of $40,318 has a resale value of $24,682, so you would recoup 61.2%, up ever so slightly from 2019 figures.
Don’t stop there, though. Two national associations paired up to review some of the same questions and came up with a different response. The National Association of Realtors® (NAR) and the Remodeling Industry (NARI) collaborated on the development of the 2019 Remodeling Impact Report, that determined:
Finally, REALTORS® provided an estimate of the likely dollar value each project would add to the house at resale. In comparing that dollar value to the estimated cost of each project provided by NARI members, a Recovered Project Cost percentage was calculated. For exterior projects, the highest percentage cost recovered was from new roofing at 107 percent, new garage door at 95 percent, and new steel and fiberglass front doors at 75 and 74 percent respectively.
According to another Marin realtor, Corey Robinson, with Golden Gate Sotheby’s International Realty
“A new roof is a significant investment, and one worth making to improve the appraisal value of a home. It serves the very practical purpose of protecting and insulating the home, so it’s always a conversation piece with prospective home buyers. Not to mention, a new roof looks great and adds to curb appeal, adding significant value just from a cosmetic standpoint.”
How to Avoid Surprises
Various improvements and upgrade projects fare better and some fare worse than a new roof. However, curb appeal and return on investment are not the only considerations.
Bruce Raful, a San Rafael appraiser said:
“If the roof that you have looks great and is in good shape, that is one thing. If your roof looks worn to the untrained eye, has curled up shingles, or broken tiles when you walk around and look up at the roof, that could provide the potential buyer with leverage to talk down the price.”
He continued, “A worn roof may well mean that the roof has experienced leaks. I always suggest that a seller engage a roofing contractor to conduct a thorough inspection, so they are knowledgeable about the issues. If a roof has leaked it may have caused damage inside the walls and the damage could be worse than you can see without an inspection. A seller will be in a much better position knowing what the issues are. I recommend a series of inspections, in various areas of the home, so the seller doesn’t experience any surprises.”
People are still putting homes on the market and individuals are still buying, while exhibiting a fair share of caution. In our current environment, a seller who knows about any potential problems will be in a better position to make decisions about investing in needed repairs or preparing for potential buyer negotiations.
If you have concerns about the condition of your roof and want to be sure you don’t experience any surprises prior to selling your home, we’d be happy to schedule an inspection with one of our professionals. Contact us today for your free roofing estimate!