How Much Value Will a New Roof Add
When it comes to home renovation, homeowners are always looking into projects that will provide a strong return on investment through increased property value. To this effect, many people immediately start looking into ways to redo their master bathroom or create their dream kitchen. However, there is a much more straightforward renovation that can boost home value just as much, if not more, than these more glamorous undertakings: installing a new roof.
Does a roof add value to a home? Statistics from a 2020 study by Remodeling Magazine show that, yes, a new roof will add substantial value to your house. For a basic asphalt roof replacement that costs $24,700 to install, the national average increase in resale value is $16,287, for a return on investment of 65.9%.
While no home renovation will ever recoup 100% of the project cost, Remodeling Magazine discovered the 65.9% ROI of a roof replacement to be higher than popular projects such as an upscale kitchen remodel (53.9%) and midrange bathroom addition (54.0%).
Therefore, if you are exploring value-adding remodeling projects for your Phoenix-area home, a roofing replacement can be an excellent place to start.
Reasons Why You Need A New Roof
Now that it has been established that a new roof will add value to your house, the next questions to answer is why? The following list examines the reasons why you should install a new roof prior to listing your Phoenix home:
● Enhanced curb appeal. A home with a faded or dilapidated roof will be a major black eye for your property, causing buyers to make negative assumptions about the overall condition of the home itself. On the other hand, a freshly installed roof will be one of the first things buyers notice when looking at your listing. Everyone wants to take pride in the property they own, with buyers willing to pay extra for a roof that looks the part.
● Improved insulation. A significant amount of air and moisture can be transferred through a worn or improperly installed roof, leading to expensive damage to the home’s interior and elevated heating and cooling costs. In fact, while the 62.9% ROI in terms of resale value is a solid figure, homeowners can expect to recoup even more of the replacement cost through utility savings while they wait for the home to sell, especially if polyiso insulation is added to the roof sheathing during renovation.
● Innovative materials to protect your home. At one time, the best roofing materials would have a useful life capped at 20-25 years as the ravishes of Mother Nature took their toll. This made roof replacements a harder pill to swallow, as the home would likely be looking at several roof replacements over its lifetime. Fortunately, roofing technology has improved greatly over the years, with many modern products carrying warranties of at least 50 years. Innovative products such as UV and hail resistant shingles cost roughly the same as traditional asphalt, making it possible to protect your Phoenix home from the blistering sun with greater confidence over time.
Decreased time on the market. One of the unforeseen costs of a poor roof rears its ugly head through a home that sits on the market without selling. Many potential buyers will simply look at a poorly roofed home and keep moving. Others will play hardball in their negotiations, making offers that are contingent on the roof being replaced. “A new roof prior to listing can eliminate these concerns, with greater resale value possible if multiple buyers fall in love with the home’s classy appearance and get in a bidding war.” – Jeff Guthrie, Phoenix Roofing Contractors
Cost of Replacing vs Cost of Fixing
As with any home renovation, the value added cannot be realized without first spending on the remodeling project itself, and the total cost of a roof replacement can cause some homeowners to hesitate. A replacement using standard asphalt shingles will cost around $25,000. More expensive products, such as ceramic or metal tiles, will run well into the $30,000’s, with some installations approaching $50,000 on larger homes.
This may lead some homeowners to believe that a roof repair is a better option than an entire roof replacement, with HomeAdvisor reporting the average cost of a roof repair to be $918. While this may seem like a much more prudent financial decision, the lower cost should be taken with a grain of salt due to the following factors:
● Curb appeal will likely be sacrificed, as it can be difficult to find replacement products and technicians skillful enough to match the worn appearance of the existing roof.
● The same issues that necessitated a repair will likely appear in other areas of the roof over time.
● While buyers are appreciative of a repaired roof, a repair will not add value to the home. In fact, it may actually hurt value through the aforementioned hit to curb appeal and expectation that subsequent repairs may be imminent
In general, it is usually only a financially sound idea to go with a roof repair over a replacement if the roof is less than 10 years old and the affected area is small enough that any inconsistencies in appearance following the repair will not be noticeable.
When considering value-adding remodeling projects for your Phoenix-area home, take the time to look into the benefits of a roof replacement. With statistics showing that a new roof can yield in excess of 60% ROI in terms of increased resale value, a new roof to stand up to the unrelenting desert sun could make your home a hot commodity on the market.
Sent in by Jeff Guthrie at Phoenix Roofing Contractors