If you've ever sold your home, you're probably familiar with something that many homeowners do before getting an appraisal: go through their list of repairs and check each item off so that they can increase the value of their home before listing it.
This makes sense. A home with freshly painted walls and updated appliances is going to be valued higher than one that has walls covered in stains and markings and a kitchen with an outdated, poorly functioning oven and microwave. Taking care of small fixes pays off — but what about bigger fixes that require a larger investment, like a new roof? Does replacing your roof add value to your home?
How Much Value Does a New Roof Add?
Adding a new roof to your home absolutely increases its curb appeal and adds value in numerous ways — both for people looking to sell and those who aren't. You won't always get an exact return on investment when you replace your roof, and calculating the exact correlation between new roof and home value isn't always a simple, clear-cut equation. But the benefits that come from adding a new roof to your home outweigh the costs, including:
1. Increasing resale value. If you're planning to sell your home within the next five years, you can expect to make at least $17,000 more on your sale, and you'll be able to recoup about 60% of the cost of the new roof, according to a 2021 Cost VS Value report. Again, this isn't a 100% return on investment, but it's more than halfway there and still a substantial amount of money.
2. Bolstering energy efficiency. Replacing your roof helps you save money long-term on your energy bills. Because the lifespan of most roofs is 20 years or more, older roofs are typically made with outdated materials that aren't rated as high in energy efficiency. When you replace the roof on your home, you can expect to save around $500 a year on your utility bill.
3. Improving air quality in your home. A roof defends your home against the elements, and that doesn't only include snow, wind, rain, and hail. Older roofs can let in air in that's full of pollutants and allergens, too. More than that, older roofs are also more susceptible to leaks, and when there's water, there's mold. Breathing in mold and mildew is bad for you and causes health problems, but a new roof can help to prevent that from happening.
4. Maintaining insurance. Most homeowners' insurance policies have little to no coverage on roofs older than 20 years old, which can create huge problems if you experience a leak, or another form of damage, to your home as a result of an older roof. By replacing your roof, you'll have better insurance coverage should something happen to your home or roof.
5. Obtaining a new warranty. When you get a new roof on your home, you also get a new warranty to go with it. The details of the warranty will vary based on manufacturer and contractor, but you should be covered for at least five years, and some companies even offer a lifetime warranty. When you get a new roof, you'll know exactly what your warranty entails, and you'll be prepared should you need to use it.
Does a New Roof Help Sell Homes?
You might be wondering if replacing your current roof will help your home to sell. By replacing the roof on your home, you will get:
More offers. Homes that require little maintenance appeal more to buyers than homes that need a lot of work. Homes that are considered turnkey, or move-in ready, sell the fastest and get the most offers. That said, a new roof certainly makes a home more move-in ready.
Higher offering prices. If your home is up-t-date, you'll also get higher offer prices. If potential buyers see that a roof needs to be replaced, they'll factor the cost of the new roof and the hassle of having it done themselves into their offer and provide a lower number than what you're asking.
Faster sales process. Move-in ready, updated homes speed up the sales process, too. You won't need to go back and forth with potential buyers about factoring in the cost of a new roof because you've already replaced it.
So, how much value does a new roof add to your home? A lot, as it turns out. If you are ready to make the investment and replace your roof, contact us today!