Selling a Home: Should I Invest in a New Roof?
By Dymon Brady
In the past, we have addressed several ways that roof improvements can save you money in the long run.
Just a couple weeks ago we posted a guide to saving money by installing a metal roof. Though it is a larger investment upfront, the roof will likely last 2-3 times longer than an asphalt roof, saving money in the future.
Remember our Cool Roofing Materials post, or the guide to earning up to $1500 back on your tax returns by installing an energy efficient roof?
Also, we have discussed saving money through attic ventilation. Did you know that poor attic ventilation can actually cause your attic to get so hot that it can bake your shingles from the inside out?
Traditionally, we have focused on how to help the long-term homeowner get a return on their roofing investment. However, many people who are looking into roof repairs and replacements are actually trying to make last minute improvements before they sell the house. They will typically ask questions such as “Should I sell my house for less and let the buyer cover roof repairs, or should I repair or replace the roof myself?”
This answer is like many answers you will receive when selling a house: “It depends”.
First of all, while many ‘flipper’ buyers will discount the price of the home to allow for repairs, they will try to lower the price enough to make it worth their time fixing up the home as well. This means that if you estimate your home needs $13,000 worth of roofing repairs, and your home is worth $150,000 with the repairs completed, they will most likely look to save more than that $13,000, lowering your selling price to around the $130,000 range. It’s not worth their time to put in a new roof without getting additional money out of the home.
If you are marketing to home buyers looking to inhabit the house, keep in mind that a roof is not one of those “little repairs” that buyers expect when looking into homes. They will usually accept costs like re-carpeting, painting, etc. A home that needs a roof replacement may scare them away and make your home harder to sell. If the roof is in really bad condition, a willing buyer may not even be able to get a mortgage to cover the home costs.
However, if you are upfront with the buyer about the conditions, some buyers may actually prefer to have a say in what roofing material is installed on the roof. It is not unheard of to be able to meet in the middle on costs, with both buyer and seller covering 50%. You could list your house for what you feel it is worth fixed up, and offer a closing credit of 50% of the roofing costs.
Keep in mind that you may not be able to receive 100% back of repair costs when you sell. In 2013, it was estimated that sellers receive 62.9% of their investment back when it comes to roofing repairs and re-roofs before the sale.
It is a good idea to get a solid opinion on the matter from both a real estate agent and a roofing contractor. The condition of your roof, as well as the rest of your home and the housing market, will affect whether or not you should be the one to invest in the costs, or whether you should hand them to the buyer.
Brady Roofing offers free roofing estimates. If you are interested in receiving more information, call us at 801-487-5151.