If you are looking to sell your Indianapolis home, a new roof is a powerful marketing tool. Buyers appreciate a new roof because they know it will save them the hassle of having to replace it themselves. Most buyers want to avoid large post-sale expenses like a new roof installation, and may not put in an offer on a home with an older roof in order to err on the side of caution. Does that mean adding a new roof boosts your home’s property value? Depends…
A roof that nears the end of its life cycle will reduce the property value and be worth repairing. Investing in premium shingles, however, may not necessarily give you the boost in home value you expect. It is impossible to pin down just how much the home price would rise with a new roof. You would need to consider factors including the condition of the building, aspects of the real estate market and buyer’s preferences.
We also gathered the studies on how much new roofs contribute to the worth of your Indianapolis house. We ‘re going to talk you through which aspects make a new roof a wise investment. If it turns out a new roof is worth helping you get the most money for your home, you’ll want to read our exploration of which shingles will give you the best return on investment.
How much does the property value increase with a new roof?
The research has been somewhat mixed. One research showed a new roof would be a good investment. Remodeling ‘s 2019 Cost vs. Benefit Survey finds the average American homeowner is spending $22,636 on a new medium grade asphalt shingle roof. On average the new roof would raise the valuation of the house by $15,427. That’s 68 percent of the investment.
However, other research has found a new roof adding much more to the value of the appraisal. A remodeling impact report was released by the National Association of the Remodeling Industry (NARI), which found new roofs providing a return of 109 per cent, which means you could make a profit on your new roof.
Although putting on a new roof is obviously a successful investment, how will you know if you can get a 60 percent return on your roof or if it will raise your home above its own costs? There are at least three factors you need to consider: the condition of your roof, the conditions on the housing market in your area and the type of roof you choose to replace.
The Condition of Your Indianapolis Roof
Keeping your roof in good condition is seen as an essential part of home maintenance. Most home buyers expect the roof to be in good condition and will be very reluctant to buy if it is not. None has the resources and time to perform substantial repairs to the roof after they buy a house.
Local appraisers will note that the roof is in bad shape and will thus reduce the home valuation based on how serious the roof issues are.
However, if your roof is, say, five years old and in relatively good condition, you might not get much benefit from a new roof. Put yourself in the hands of those customers. Will you pay extra for a house with brand-new pipes rather than a house with functional but slightly aging plumbing? Most buyers will feel comfortable enough to buy as long as the roof looks good and is projected to last. Many elements of the home are generally more important to buyers than the roof, and are more likely to affect their decision. When it comes to navigating the roofing process and how much you can expect to gain in value for your home the expert Indianapolis roofing company at Richmond Exteriors can help you glean some insight.
Nearly all the Indianapolis homeowners who took part in the NARI study (which showed the highest return) reroofed their homes because their old roof was worn out. If you’re trying to sell an older house, or your home has a very damaged roof, replacement is a safer investment. With such a roof, you will turn away many buyers, and those who are still interested may expect a discount because of the added cost of replacing the roof. You may even be legally obligated to repair a particularly bad roof.
On the other hand, if you have one small problem with your roof, it might be more cost-effective to repair it rather than replace it. If the roof is in good condition, neither repairing nor replacing will likely boost your appraisal value. Keeping the costs down is safest. Most of the repairs cost far less than the average reroofing job. You can ask a roofing professional to quote you for repairs as well as for a replacement of the roof. Then you can see exactly how much each would cost you, and weigh their benefits and costs accordingly.
Market prerequisites for your Indianapolis roof
Adding a new roof doesn’t boost home value in any market. Conditions of the general housing market affect the value of every home renovation. Asking your local appraisers and real estate agents for advice is your best bet to understand the current market conditions you are facing. However, there are some geographic details that can help you. A new roof adds the most value to appraisals in the Indianapolis region, at a return of 77 percent, according to Remodeling’s 2019 report.
The New Shingles You Choose
Your shingle option will have an effect on the return you get on your new roof. Remember that in the Remodeling study, the homeowners surveyed in the NARI study paid less than the average homeowner, at $7,500 instead of $22,636. This is clearly a substantial difference. Those who spent more money might have purchased or added more expensive shingles and accessories or other features, such as skylights.
Why is it so important? In the Remodeling report, those homeowners spent far more than the national average cost of reroofing, which is $7,796 USD. The homeowners in the NARI report, by contrast, kept their costs nearly on average. Spending less money seems to have earned a much greater return for those homeowners.
Keep in mind that a replacement of the roof is a much more involved effort than undertaking a new paint job, or even changing the tile of the bathroom. Few buyers would choose to reroof the house only because they do not like the hue of the shingle. They’re not going to send in an bid.
As so much depends on the expectations of your neighborhood and buyer, it is wise to get the perspective of a real estate agent on what kind of asphalt shingles buyers in your area expect and how valuable they perceive a new roof to be.
Does a Home Value Metal Roof Rise?
What about metal roofs? Metal roofs are often considered a good way to boost home value, but research indicates that they are not as cost-effective as shingles made from laminate.
The 2019 Remodeling Report found that a metal roof on average cost homeowners $38,600 and a 60.9 per cent higher home value. Compare this to their asphalt roof findings, where the average homeowner spent $22,636 and got a 68 percent return.
Not only is metal roofing more expensive than asphalt shingles on average, metal roofing also adds a lower percentage of its value to an appraisal. Ultimately, you spend more money on a metal roof but you get less of your investment back. You’ll pay $38,600 if you install a metal roof, and you can get a $23,507 boost to home value. Therefore, you’ll have paid $15,093 so you won’t be able to get home value back. While you’re spending $22,603 for an asphalt shingle roof, you might get a $15,392 boost to home value. So you’re only going to have paid $7,244, which you may not get back to home value. Such figures are percentages only. You could get a full return on your investment. And if you don’t, shingles built from laminate are a less expensive investment than a concrete roof.
Everyone should understand how a homeowner sees a metal roof. Few homes have metal roofs so homeowners who have never owned one before may seem unpredictable. Homeowners may have too many concerns about metal roofs to feel confident buying one, because they are less available.
If you want to optimize your investment as with other home renovations, it’s best to stick with common items in similar designs that won’t lift the average home buyer’s eyebrows.
Is it a New Roof as a Selling Tool?
A new roof might not boost your home value too much, but might it still help you sell your home? No doubt many real estate agents value a new roof as an effective tool for selling. In fact, 32 per cent of realtors recently used a new roof to finalize a sale, according to the NARI report. Buyers are drawn to homes with new roofs!