When you sell your home, you want to get the highest price possible. To increase a home’s value, many homeowners may prioritize repairs to complete before selling — things like plumbing, structural repairs, HVAC, and painting.
What about roofing?
Does a new roof increase home value enough to make it one of the top repair priorities?
Before putting your home on the market, learn how a new roof can add value to your house, how to recognize the signs your roof needs to be replaced, the best roofing materials, and why Oscar Roofing should be your choice of roofing professionals in the Indianapolis and Bloomington areas of Indiana.
Table of Contents
- Does a New Roof Increase Your Home Value?
- 3 Conditions To Consider Before Replacing Your Roof in an Effort To Increase Home Value
- Negative Impacts of Not Replacing Your Roof Before Selling Your Home
- Signs You Should Consider Replacing Your Roof Before Selling Your Home
- Best Roofing Materials for Increased Home Value
- Oscar Roofing: Specializing in Repairs, Replacements, and Installations To Help Increase the Value of Your Home
Does a New Roof Increase Your Home Value?
Yes, a new roof can increase the value of your home, and in many instances, getting a new roof may be the right choice to get the most out of your home.
Though a new roof may raise the value of your home, the ROI (return on investment) will probably be more like 60% than 100%. Even so, there are additional benefits that make a new roof worthwhile when selling your house, like:
- Getting your asking price
- Straightforward negotiations
- Shorter time on the market
On the flipside, trying to sell your home when the roof is in disrepair — loose shingles, missing or cracked shingles, or leaks — may be more challenging.
How Much Does a New Roof Increase Home Value?
This is a difficult question to answer with 100% certainty across the board because many factors can come into play here.
In general, though, a new roof may increase the value of the home from 48% to 61%.
According to Remodeling’s 2023 Cost vs. Value Report, a roofing replacement using asphalt shingles costs an average of $29,136. With an average resale value of $17,807, homeowners replacing a roof with asphalt shingles may see a 61.1% ROI.
The Cost vs. Value Report estimated that a metal roof replacement would see a 48.9% ROI. The average cost of a metal roof replacement is $47,414, with a resale value of $23,163.
Whether using asphalt shingles, one of the most popular roofing choices, or metal, a low-maintenance option, homeowners have much to gain by replacing their roof before putting their house on the market.
3 Conditions To Consider Before Replacing Your Roof in an Effort To Increase Home Value
Even though the chances of a favorable ROI on a new roof are high, you’ll still need to make some accurate estimations to be able to measure the increase in home value versus the amount it will cost for the whole roofing project.
The increased value and return on investment will depend on the following factors.
#1: The Condition of Your Current Roof
An average roof should last 25-50 years, depending on the type of roof, materials, installment, and maintenance. If a roof is fairly new and has been well-maintained by the homeowner, it may help the home maintain its value.
However, if the roof is nearing its lifespan or hasn’t been maintained well, replacing it may be the best way to price the home to sell for its value.
In the end, you’ll need to decide if replacing the roof will be worth it in the long run.
For example, if your home’s roof is only ten years old and the roof is in good shape, replacing it wouldn’t make sense because you wouldn’t get a high enough return on investment to make it worthwhile.
Or maybe your roof only has minor issues that need small repairs. Making those repairs may be worth it, even if you don’t see a good ROI. When buyers see a home with an intact roof, they may be quicker to buy at full price, which will make those small repairs an advantageous choice.
On the other hand, if a homeowner is trying to sell a home that has massive roofing issues, it would be in their best interest to repair the roof before listing it.
Most buyers don’t want to take on a roofing replacement right after buying a house — a roof that hasn’t been maintained can be a real turn-off. On top of that, if an appraiser finds roofing issues, he will value the home for less.
Not replacing a roof can make it difficult to sell a house because buyers may engage you in lengthy negotiations or walk away altogether.
If you’re not sure if your roof needs to be repaired or replaced, contact Oscar Roofing to take a look.
Our experienced team can confidently inform you if your roof is ready for a complete replacement or if repairs would be more appropriate. They’ll give you a fair estimate for the work and deliver a first-class result.
#2: The Housing Market Conditions in Your Area
The real estate market in the area you live in will play a part in the value of a new roof, so asking your realtor and local appraisers about this can help you better understand the market you’re about to face.
For example, according to Remodeling’s 2023 report, a new roof adds the most value in the East South Central region (Mississippi, Alabama, Kentucky, Tennessee) with a 67.3% ROI for an asphalt roof replacement.
The lowest value for an asphalt roof replacement is in the East North Central region (Wisconsin, Michigan, Illinois, Indiana, Ohio) with a 49.8% ROI.
Remember that these are regional averages, and the specific market in your area may be different. To get an accurate look at the market conditions in your area, consult a realtor in your area.
#3: The New Roof You Choose
The material you’re choosing for your roofing replacement can affect your ROI.
In general, your home improvements should match your neighborhood. Spending far above the average will make your house stand out and look lavish in an average neighborhood. You’ll be unlikely to get the full value back when buyers compare your roof to others around the neighborhood.
In this case, spending an average amount is better for ROI.
Negative Impacts of Not Replacing Your Roof Before Selling Your Home
According to roofing stats provided by Ruby Home, 85% of the roofing business in the United States is made up of replacing roofs on existing homes. Doubtless, many of those roofs being replaced are done before putting the house on the market.
Others, though, may be willing to take the risk of not replacing a deteriorating roof in hopes that buyers will still be motivated by other features of the home. But not replacing a roof before selling a home may backfire by not getting offers, prolonging the sale process, or settling for a lower price.
Fewer Offers
Buyers are usually looking for homes that are move-in ready and don’t require extensive work or additional expenses off the bat. If your roof needs extensive repairs, buyers may lose interest quickly and walk away without making an offer.
Worse yet, if buyers look at a home with a damaged roof, they may wonder if the home has other hidden issues that may require even more repairs.
All in all, a roof with issues gives a bad impression to home buyers, which may result in few or no offers.
Longer Sale Process
A home with roof issues may spend more time on the market as buyers look at other properties, bypassing the one with necessary roof repairs.
Additionally, a home may take longer to sell when it has a roof that needs to be replaced because of potential delays due to price negotiations. In lieu of price negotiations, buyers may request that the roof be repaired or replaced before closing on the property.
All of these draw out the selling process, and the longer the house is on the market, the more likelihood of the seller lowering the selling price down the road.
Reduced Offer Price
Speaking of price, a roof in disrepair may result in buyers submitting much lower offers than the asking price.
Knowing that a roofing replacement looms in the future, buyers may be unwilling to pay the asking price and negotiate the price to account for roofing costs. By accepting a lower offer, buyers may find that — even with the cost incurred to replace the roof — because of the great ROI, they come out better financially than they would if they negotiated a lower price.
Signs You Should Consider Replacing Your Roof Before Selling Your Home
Roofing issues that point to a necessary repair or replacement are easy to see. If you notice any of these signs in regard to your roof, they can reduce your home’s value and point to needed repairs:
- Buckling shingles
- Cracked shingles
- Leaks
- Wind or hail damage
- Ice dams in winter
- Sagging roof
- Missing granules
- Gutters cluttered with debris and granules
- An older roof (25 years or older)
- Missing shingles
- Water damage
- Mossy shingles
One or two of these issues may warrant a roof repair, but if your roof has multiple issues, a replacement may be the only profitable option.
If you’re not sure about the state of your roof or if it’s in condition to be put on the market for a good price, call Oscar Roofing for a free roof inspection and estimate. Our professional inspectors will provide an honest overview of your roof’s condition and needs. If your roof needs to be repaired or replaced, we’ll get the job done right and help you get the most value out of your home as possible.
Best Roofing Materials for Increased Home Value
Roofing materials come in all kinds of varieties, from asphalt shingles to metal to slate and even solar and wood materials.
When asking the question, “Does adding a new roof increase home value?” you should consider the types of roofing materials available and which ones make for the best value in a new roof.
Metal
Metal roofing is a popular material choice and is often made to look like other roofing materials like slate, tile, and shingles.
Metal roofing is an excellent choice for resale value because:
- It’s durable, lasting up to 50 years.
- It has aesthetic value and appearance.
- It helps shed snow easily in regions that experience regular snowfall.
- It is suitable for many types of homes.
- It’s fire-resistant.
Tile or Clay
Though not the premier roofing choice in the Midwest, tile or clay roofs may be a popular choice in desert climates on Spanish-style homes.
Clay and tile can be more expensive, but even so, homeowners in those western regions of the U.S. may choose this material because of the following benefits:
- Longevity (lasting 50 to 100 years)
- Savings on energy costs
- Low maintenance
Slate
Though heavy and expensive — sometimes costing 20 times more than asphalt shingles — some homeowners may still choose slate for the following reasons:
- Lasts for over 100 years
- Fire resistant
- Low maintenance
Asphalt Shingles
Without a doubt, asphalt shingles are the most popular roofing material across the US.
In addition to adding value to a home, homeowners may choose this roofing material because of the following advantages:
- Affordable
- Lifespan of 15-25 years
- A variety of styles, patterns, and colors
- Easy to replace and repair
Oscar Roofing: Specializing in Roofing Repairs, Replacements, and Installations To Help Increase the Value of Your Home
If you’re selling your home and want to get top dollar, let Oscar Roofing help you decide if your home needs a new roof to capitalize on your investment.
With over 20 years of experience, we know the roofing business. Our inspectors will perform a thorough 20-point inspection and provide a detailed and fair estimate. We’ll give you an honest report of your roof’s condition and help you decide on the best solution.
We are the top-rated roofing contractor in Indianapolis for good reason:
- Extraordinary customer satisfaction
- An experienced team
- Owens Corning Preferred Contractor and A+ BBB rating
- Fully licensed, bonded, and insured
- Family-owned and operated
- Flawless workmanship and personalized attention
Get your free quote today and get the finished roofing product that will deliver the most value for your home.
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