A Roofs Relation To Home Value

Whether you’re looking at your home as a long term investment, or are looking to sell you home, you’re probably wondering how much your roof can impact home value. The good news is that a new roof can add amazing curb appeal and significant value to your home

The bad news is that a roof in poor condition can also detract from the value of your home. A damaged roof is also one of the first things prospective buyers and renters will notice. 

A New Roof Within The Housing Market

Often your realtor might suggest replacing your roof before you sell your home if they suspect it’s in poor condition or looks like it might impact sales potential. Your realtor might also suggest a new roof if your home has been on the market for an extended period and you need to do something to help it sell and add value to your home. 

This is one of the most obvious scenarios where you can really feel the value of a roof for your home. If your roof is in poor condition, it can make it hard to get offers for your house, even if your price is reasonable for the quality and condition of the house. 

It’s also one of the few times when you can put a clear dollar value on your home and your roof. 

According to an assessment by Remodeling Magazine, homeowners can expect to recoup about 60-65% of their costs for a new roof in increased home value. That number varies based on materials used, location, and how much you pay for professional installation of course. 

Overall, your roof is one of the better large investments you can make in your home. It’s a better rate of return that you can currently expect for a bathroom remodel or addition, or even an upscale kitchen remodel. 

Roofs Value Through Years; Does It Depreciate?

Another question many people ask is if the value of a roof depreciates over time. If you were to replace your roof 5 years before selling your home, would you still receive the same value for your original investment?

Well, we’ll answer the first question first. While your roof does depreciate over time due to the materials that will degrade and lose value over time. That doesn’t mean that a recent replacement will be worth a lot less than it was when it was installed. 

If your roof is still under warranty, chances are it’s still adding reasonable value to your home. 

Once your roof is out of warranty, it probably isn’t adding much value to your home because most roofs will need to be replaced within a few years before the warranty expires. 

The Value Of Materials

This question is harder to answer, because the popularity of different materials, and the safety code requirements on your home, vary widely depending on the state. 

Generally, you don’t want to go with the lowest quality materials. Asphalt shingles are incredibly popular, but they come in many different grades, styles, and colors. Spending a little more for a longer-lasting and more attractive shingle can pay dividends in the long run. 

But more expensive materials, like slate or tile, might add more to your overall home value, while still offering a worse return on expenses.

Even metal roofing offers a lower return on investment (as of 2019) than a good asphalt roof. 

However, metal, slate, tile, and even wooden roofs depreciate more slowly and last longer. So while your initial return on investment may be lower, these types of roofs offer more value over the long term. 

If you’re looking to stay in your home for the next several years or decades, a better quality of roofing materials might be worth it. If you’re looking to sell sometime in the next 5 years or so, a mid-grade asphalt roof will probably offer better value. 

Evaluating Your Home Value:

The raw value of your roof isn’t the only way your roof can impact home value. There are lots of other things to consider that can make your roof either increase or decrease in value. 

Aesthetics:

When looking to sell your home, usually aesthetics should be one of the last considerations. After all, your preferences may not match the buyer's preferences, and the last thing you want to do lose a buyer due to bold cosmetic choices. 

But, there are a few exceptions. 

Your roof may add more value to your home if it either brings your home closer in appearance to the well-maintained homes around it or if it makes your house stand out in a good way. 

For instance, if you have a bright gray roof, while every other roof in your neighborhood is a dark muted color, a new roof in a darker color may increase curb appeal enough to add greater value to your home. 

Or, if you have a Tudor home with a historical feel, but a very modern-looking roof, replacing to something that looks more like a historical Tudor (only if you need to replace the roof anyway), may add greater value thanks to curb appeal. 

Utilities:

Another huge impact your roof can have on the value of your home is in the cost of your utility bills. Since your roof can have a large effect on your homes insulation and heat transfer, a newer roof can save you a lot of money. 

You can get utility records from your provider to show the difference in cost before and after installing a new roof. That information increases the value of your roof for you, if you intend to continue living in your home, and can also be used to help seal the deal for buyers if you're selling your home. 

Warranty:

Another way to increase the value of your home, if you’re looking to sell, is to get a new roof with a transferrable warranty. Providing your buyer with a warranty on the roof will give them added peace of mind and might make them comfortable with giving you’re a higher offer. 

That’s because the warranty will help assure them that they won’t need to spend thousands of dollars to fix the home after purchasing it, so they’ll be comfortable saving less for future improvements and changes. 

Final Considerations:

There’s no one clear answer for how much value your roof can add to your home. The value of a roof depends a lot on whether you’re intending to live in your home or sell it, and what kind of roof you want to install. 

But, there’s almost no doubt that a new roof increases the value of your home, especially if your roof has begun to fall into disrepair.