Your home is likely one of your biggest investments. When it comes time to sell, you want to get the most out of that investment. One way to get a return on investment is to improve your home’s resale value. There are many things you can do to increase your home’s resale value, such as upgrading the kitchen or bathrooms, landscaping, or painting the interior. But one of the most important things you can do to boost your home’s resale value is to make sure your roof is in good condition or get a new roof.
Why A New Roof Matters When Selling
A new roof is an investment that can pay off in a big way when it comes time to sell your home. Studies have shown that a new roof can increase the resale value of your home by anywhere from 5% to 15%. Here are a few reasons why:
- First Impressions: First impressions are everything, and that includes the first impression buyers get of your home. A damaged or old roof can detract from the curb appeal of your home and make it look less inviting. A well maintained roof or new roof on the other hand, will make your home look sharp and well-maintained, increasing your home’s curb appeal.
- Peace of Mind for Buyers: A new roof gives potential buyers peace of mind. They know they won’t have to worry about the expense of a new roof or roof repairs in the near future. This can make your home more attractive to buyers and help you sell it faster.
- Increased Value: Studies have shown that a new roof can increase the resale value of your home by anywhere from 5% to 15%. That’s a significant return on investment, especially when you consider the fact that a new roof can last for decades.
Unveiling the ROI: The Value Boost of a New Roof
Canadian studies consistently show that a new roof is a worthwhile investment when selling your home. Here’s a breakdown of the potential return on investment (ROI):
- Increased Appraisal Value: The Appraisal Institute of Canada estimates a new roof can increase a home’s value and return on investment by 5%-15%. For a home in Winnipeg with a median price of $315,900 (as of 2020), this translates to a value increase of over $15,000 – $45,000 or more!
- Enhanced Marketability: The National Association of Realtors suggests a new roof can boost value by up to 15-35%. A new roof signifies a structurally sound and energy-efficient home, making it more attractive to potential buyers.
- Cost Recovery: Studies indicate homeowners can recoup 67-85%, if not all, of their new roof investment when selling. In Winnipeg, a $10,000 roof replacement could translate to a value increase of $6,500-$9,500 or more when taking into account the above stat that a new roof can increase a home’s value by 5%-15%!
In essence, a new roof not only improves your home’s curb appeal and functionality but also offers a significant financial benefit when it’s time to sell.
How Does A New Roof Increase Home Value?
While a well maintained roof or new roof undoubtedly boosts your home’s resale value, it’s crucial to understand the broader return on investment (ROI) it offers. We’ve already mentioned that studies have shown that a new roof can increase the resale value of your home by anywhere from 5% to 15%. Other studies and articles reveal that 33% of realtors suggest to sellers to add a new roof before selling their property. But a new roof goes beyond the initial price increase you might see at closing. A new roof offers a multitude of benefits that enhance your enjoyment of your home now and translate into long-term financial gains. Let’s delve deeper into these advantages:
- Increase Selling Price: A new roof, or roof replacement, acts like a magic facelift for your home, boosting curb appeal. For potential buyers, a new roof signifies a major expense already tackled, offering structural integrity and reducing the likelihood of unexpected repairs in the near future. This translates into a higher perceived value and a more competitive selling price.
- New Manufacturer Warranty: A transferable new roof manufacturer warranty assures potential buyers that the roof is covered for years to come, reducing their financial risk and future repair concerns. This translates to increased peace of mind and greater confidence in the overall condition of the home, potentially leading to a higher selling price.
- Improved Energy Efficiency: A new roof can help to improve your home’s energy efficiency. This is because new roofing materials are designed to reflect heat in the summer and insulate your home in the winter. This can save you money on your energy bills.
- Enhanced Living Comfort: A well-functioning roof plays a vital role in regulating your home’s temperature. Modern roofing materials excel at reflecting heat in the summer and insulating your home in the winter. This translates to lower energy bills, creating significant cost savings throughout the year. Imagine the comfort of a cool haven during scorching summers and a cozy warmth during chilly winters, all while reducing your reliance on energy-guzzling HVAC systems.
- Peace of Mind and Safety: A leaky or damaged roof can cause a constant state of worry. A new roof eliminates these anxieties, offering peace of mind knowing your home is protected from the elements. Furthermore, a structurally sound roof is crucial for the overall safety of your home and its occupants.
- Increased Homeowner Insurance Savings: Many homeowners insurance companies offer discounts for homes with newer roofs. A new roof with new roofing materials, demonstrates proactive maintenance and reduces the risk of future claims, leading to potential savings on your insurance premiums.
- Potential Tax Benefits: In some cases, there may be tax credits or deductions available for energy-efficient roof replacements. It’s always wise to consult with a tax professional to see if your new roof qualifies for any such benefits.
- Reduced Repairs & Maintenance Costs: A new roof replacement is less likely to require roof repairs than an old roof. This can save you money on roof repairs and maintenance costs in the long run.
- Improved Indoor Air Quality: Older roofs with compromised integrity and poor roofing materials can allow dust, pollen, and even critters to infiltrate your living space. A new roof creates a tighter seal, minimizing allergens and pollutants from entering your home. This can be particularly beneficial for those with allergies or respiratory sensitivities.
- Protection from the Elements: A new roof will protect your home from the elements, such as rain, snow, and wind. This can help to prevent damage to your home’s interior and exterior.
Benefits of Installing A New Roof: Optimizing Your Investment
Now that you understand the extended value proposition of a new roof, let’s explore how to make informed choices that maximize your ROI:
- Roofing Material Selection: Consider factors beyond just upfront cost. Explore roofing materials like metal roofing, known for their exceptional durability and energy efficiency. While the initial investment might be higher, the extended lifespan and potential energy savings can lead to significant long-term cost benefits.
- Prioritizing Ventilation: Proper ventilation prevents moisture buildup under your roof deck, which can lead to rot and mold growth. Discuss ventilation strategies with your roofing contractor to ensure your new roof breathes effectively.
- Professional Installation: Investing in a qualified and experienced roofing contractor is paramount. Their expertise ensures a high-quality, long-lasting installation, minimizing the risk of future leaks or repairs. Don’t be afraid to get quotes from multiple contractors and compare their credentials and warranties.
By understanding the multifaceted benefits of a new roof and making strategic choices during the selection and installation process, you can transform your roof from a mere expense into a wise investment that enhances your home’s value, comfort, and overall well-being.
How Much Does a Roof Replacement Cost?
The cost of a new roof will vary depending on the size and style of your home, type of roofing material, and labor costs. However, as a general rule, you can expect to pay between $5,000 and $15,000 for a new roof.
How to Choose a Roofing Contractor
If you are considering getting a new roof, it is important to choose a qualified roofing contractor. Here are a few tips:
- Get quotes from multiple contractors.
- Get a professional roof inspection.
- Ask for references and check them.
- Make sure the contractor is licensed and insured.
- Be sure to get everything in writing, including the scope of work, the warranty, and the payment schedule.
The Verdict: Can A New Roof Increase Resale Value?
The verdict is clear: a new roof can be a strategic investment return on investment that significantly boosts your home’s resale value. This improvement can impact your home’s curb appeal, providing a positive first impression to potential buyers. Furthermore, a new roof offers peace of mind, as it eliminates concerns about leaks or future repairs. Studies have shown a new roof can increase resale value anywhere from 5% to 15%, offering a substantial return on your investment. Considering the protection a new roof provides from the elements, improved energy efficiency, and potential tax benefits, it’s clear that a new roof is an upgrade that pays off in more ways than one. So, if you’re considering selling your home in the future, replacing your roof may be a smart decision to maximize your return.
If you’re thinking about selling your home, have any questions or concerns about your roof, contact us today. Roofing is our speciality, customers our priority.
FAQ
- Do homes with a new roof sell faster?
A new roof often translates to smoother negotiations and less back-and-forth regarding repairs or future maintenance costs. Many real estate agents have personal experiences witnessing homes with new roofs selling more quickly and at a higher price point compared to similar homes with older roofs. While not a scientific study, these realtor anecdotes showcase the real-world impact a new roof can have on a home’s marketability, leading to a higher number of potential buyers, showings and offers.
- Should I repair my old roof or get a new roof?
If your roof is relatively new (less than 10 years old), has minor damage (a few missing shingles, isolated leaks), and a qualified roofer deems repairs sufficient, then a roof repair might be an option. If your roof is nearing the end of its lifespan (typically around 20-25 years for asphalt shingles), shows signs of significant damage (leaks, missing shingles, sagging), or requires extensive repairs, then a new roof is the better investment.
- Should I get a metal roof?
Metal roofs are a becoming increasingly popular choice for homeowners. They are durable, energy-efficient, and can last for many years. However, they are also more expensive than traditional roofing materials like asphalt.