Roofing companies in New York have seen an increase in roof installation requests for homes located in the Bronx. This is because more and more people are starting to believe that roof installation can actually help increase home value. But do roof replacements really raise property values? We will explore this question more below!
How Much Does a New Roof Increase Home Value?
When it comes to selling your home, a new roof installation is always a tremendous marketing asset. Buyers value a new roof since it saves them the headache of re-roofing, as your real estate agent will most likely tell you. However, after purchasing a property, most purchasers cannot handle significant expenses, such as a new roof installation. To be on the safe side, they might not offer the house with an older roof. Does this imply that installing a new roof will raise the value of your home? It is conditional.
The evidence on how much value a new roof will add to your home is pretty varied. But, according to one study, a new roof is a sensible investment. According to Remodeling’s 2019 Cost vs. Value Report, the average American homeowner spends $22,636 for a new asphalt shingle roof of medium grade. So, on average, a new roof will improve the home’s value by $15,427. That equates to 68 percent of the initial investment.
However, other studies have revealed that a new roof adds significantly more to the assessment value. For example, the National Association of the Remodeling Industry (NARI) produced a remodeling effect analysis that indicated new roofs generate a 109 percent return, which implies you might benefit from your new roof.
The Condition of Your Existing Roof
Keeping your roof in good shape is considered an essential element of home maintenance. It’s the same as maintaining the plumbing in good working order. Homeowners expect you’ve taken good care of the plumbing and will be very upset if they notice a leak. Not only would they be concerned about the leak, but they will also worry if the house has any other maintenance difficulties. Roofs are all the same in the eyes of a customer. Most home buyers will expect the top to be in good shape, and if it isn’t, they will be hesitant to buy. Few people have the money or energy to undergo substantial roof installation and repairs after purchasing a home.
However, if your roof is less than five years old and in good shape, a new roof may not be worth the money. Place yourself in the shoes of the purchasers. Would you pay more for a home with brand-new plumbing than for one with functional but older plumbing? Most purchasers will feel comfortable enough to buy as long as the roof looks beautiful and is expected to last. Other home characteristics are likely to be more essential to buyers and influence their decision than the roof.
On the other hand, if your roof has a minor problem, it may be more cost-effective to repair it rather than replace it entirely. If the top is in good shape, neither improving nor replacing is likely to increase the appraised value.
What are the Market Conditions?
Adding a new roof does not boost property value in every market. The overall state of the property market impacts the value of all house renovations. Asking appraisers and real estate brokers in your area for help is your most excellent choice for understanding the market conditions you confront. However, there is some geographical data that can help you.
A new roof adds the most value to evaluations in the New England region, according to Remodeling’s 2019 report, at a 77 percent return. Massachusetts, Connecticut, New Hampshire, Maine, and Rhode Island were all included in the study’s definition of New England. While this is generally true, your unique market may be substantially different from the regional average. Seek the counsel of a professional real estate agent in your area about how roofs function in your city and community.
The New Shingles You’ve Chosen
The shingles you choose may impact the return on your new roof. Consider that the homeowners polled in the NARI report spent less than the average homeowner in the Remodeling report, at $7,500 instead of $22,636. This is a significant difference. Those who spent more money may have purchased more expensive shingles and accessories or added additional features like skylights.
The Remodeling report homeowners spent significantly more than the national average reroofing cost of $7,796. In contrast, the NARI report’s homeowners kept their prices close to average. Less money spent appears to have resulted in a far more significant return for those homes.
In general, house modifications should be in keeping with the rest of the community. So, for example, there’s no use in a luxury home feature in a starter home because your home worth can’t increase much higher than your neighbor’s.
On the other hand, in an upscale neighborhood, a high-end shingle may be expected. Designer shingles will complement the different materials used on the outside and interior of the property.
Does a Metal Roof Increase Home Value?
Metal roofs are frequently promoted as a smart way to increase property value, but studies show that they are not as cost-effective as laminate shingles.
According to the 2019 Remodeling Report, a metal roof costs homeowners $38,600 on average and increases property value by 60.9 percent. Contrast this with their findings for asphalt roofs, where the typical homeowner invested $22,636 and received a 68 percent return.
Metal roofing is not only more expensive on average than asphalt shingles, but it also adds a lesser percentage of its worth to an appraisal. In the end, you spend more money on a metal roof but receive less return on your investment. For example, installing a metal roof will cost $38,600 and may result in a $23,507 increase in home value. As a result, you will have paid $15,093 that you may not be able to recoup in house value.
It would help to examine how a homeowner will perceive a metal roof. Metal roofs are uncommon in homes, so they may appear unpredictable to homeowners who have never owned one before. In addition, because metal roofs are less popular, homeowners may have too many questions about them to feel comfortable acquiring one.
Is a New Roof Worth it as a Selling Tool?
A new roof and roof system may not significantly increase the value of your property, but it may help you sell it. There’s no denying that many real estate brokers regard a new roof as a great selling tool. According to the NARI survey, 32% of realtors recently used a new roof to clinch a transaction. In addition, buyers are drawn to homes with new roofs because they know it will save them from replacing or repairing the roof. That’s a lot of peace of mind.
While buyers may not be ready to spend extra for a home with a new roof, they may prefer it over a comparable home with substandard roof shingles. As a result, if your property is still on the market while other properties in your neighborhood are selling, an outdated roof could be the reason buyers aren’t interested. Your roof also has an impact on the curb appeal of your property or how it appears from the outside. Curb appeal is crucial for attracting buyers to your home. It’s also your first chance to make a good impression on them.
What are the best Shingles for resale?
If you want to increase your appraised value or attract more purchasers, avoid buying the cheapest shingle. Buyers may be dissatisfied with low-cost solutions since they do not provide the same level of security. In addition, you want the buyers to be specific that they will not need to replace the roof for at least a decade with a roof replacement cost of asphalt shingle installation.
Choose high-quality asphalt roof shingles from a reputable manufacturer; these laminate shingles provide purchasers with quality assurance, primarily if you reside in a location where extreme weather conditions are expected.
High-quality shingles or roofing materials can impress both insurance agencies and buyers. Some insurance companies will give lower insurance premiums if the home has a new, ridge cap shingles high-quality roof that provides more excellent protection during extreme weather occurrences.
How Does a Reroof Compare to Other Home Renovations?
If you’ve decided to conduct some home improvements before selling your house with a good roofing contractor, a new roof is an excellent alternative because of the return on investment (ROI). In addition, a new asphalt shingle roof is less expensive than other joint home improvement projects, such as adding an upmarket master bedroom, a backyard patio, and a mid-range bathroom.
On the other hand, a new roof is more expensive than other home improvements, such as minor kitchen remodels, fancy garage door replacements, and the installation of a made stone veneer. However, these renovations can enhance home value by more than 80%, compared to 68-109 percent for a new roof, depending on their current condition and market circumstances.
Conclusion
Adding a new roof does not raise the value of a home in every market. The overall status of the real estate market impacts the importance of all home modifications. Keeping your roof in good condition is an essential aspect of home upkeep. It’s the same as keeping the plumbing in functioning order. Homeowners expect you to maintain the plumbing and be very upset if they discover a leak. Avoid purchasing the cheapest shingle to boost your evaluated worth or attract more buyers. Low-cost solutions may dissatisfy buyers since they do not give the same level of protection from roofing installation.
