Planning to Sell Soon? A New Roof May Help Boost Your Home’s Value!
If you own a home, you may be interested in selling it within the next couple of years to take advantage of a strong seller’s market. And if that’s the case, you’re probably thinking of potential ways to maximize your home’s value before a sale. Many home upgrades and improvements can add value to your home, but it’s important to choose these improvements wisely in order to maximize your return on investment. Your roof can go a long way in adding curb appeal, but does a new roof actually increase home value? We’re taking a look in today’s blog post!
Does a New Roof Increase Home Value?
The short answer is yes, a new roof will increase the value of a home. A 2019 report from Remodeling found that, on average, a new asphalt shingle roof that costs $22,636 added $15,427 to the final sale price of a home, an ROI of 68%. Meanwhile, the National Association of the Remodeling Industry (NARI) reported in 2022 that a new roof provided an average return of 109% of the roof’s cost in home value.
In other words, a new roof does increase home value. But how do we account for that 41% gap in return on investment? It all depends on your individual roofing situation.
The Right New Roof: Modest vs. Luxury
The major difference between the above two reports was the size of the investment homeowners made on their roof. As noted, the Remodeling study looked at new roofs costing just over $22,000. Homeowners within the NARI report, on the other hand, spent around $7,500 on their new roof. This pricetag is much more in line with the national average cost of a new roof.
What this suggests is that modest improvements to your roof can go a long way. This is likely because homeowners appreciate the value of not having to replace their roof more than they appreciate the value of a roof made from high-end shingles or metal. A $7,500 new roof and a $22,000 new roof are both new roofs, but the returns on your investment seem to diminish the more you spend.
Consider Where You Live
That said, much of this information is based on nationwide data. Within both of these reports, the return on investment varied depending on homeowners’ region and much more. This can make deciding on the right roof replacement for you much trickier.
Which new roof will add the most value to your home will also depend on your specific neighborhood. For instance, while a new high-end roof may not pay for itself in many areas, if your home is surrounded by homes with luxury roofs it might make more of a difference. In other words, “keeping up with the Joneses” is likely a good idea to keep your home competitive on the market.
Add Home Value by Not Subtracting Value
When thinking about how to add value to your home on the market, it’s important to put yourself in the mind of a homebuyer. Many buyers aren’t willing to pay up for luxury features in a home. On the other hand, they’ll certainly pay down as a result of any immediate improvements they’ll have to make.
If your home’s roof is outdated and in need of replacement, you’re likely to encounter many negative issues that will make the selling process more of a pain, including:
- Reduced Price – An older roof, particularly one with obvious signs of wear and tear, will be factored in when prospective buyers make an offer.
- Fewer Offers on Your Home – Most of today’s homebuyers are looking for something they can live in immediately, rather a home that will need work done immediately. Potential buyers will likely turn elsewhere if your home’s roof is obviously nearing the end of its lifespan.
- More Arduous Sale – Negotiations and back-and-forth offers can drag out the process of selling your home. Buyers may even request that you replace your roof before closing on the house as well, which can push the timeline back further still.
Dolan Roofing Can Provide the New Roof You Need to Sell!
When it comes to adding value to your home and avoiding issues with the home selling process, replacing your roof is a good place to start. No matter what type of roof you choose, you’re likely to get a solid return on your investment while increasing the curb appeal of your home to potential buyers.
Dolan Roofing & Construction is the leading expert in roof replacement services to help beautify your home and get it ready to list. Our expert roofers can even help decide on the right new roof for your home, providing insights on homes in your area and helping you to get the most from your investment.
Hoping to list soon? Contact Dolan today to replace your roof with one potential buyers will love!