Now that you understand how the cost of roof installation is estimated, you’re one step ahead. You can use your insider knowledge to create the best roofing budget to meet your needs for either a residential or commercial facility.
Step 1: Research the Market in Your Area
The prices listed in the example above were merely an estimate based on national averages. Depending on where you live and the type of structure you have, the cost of roof installation could be significantly cheaper or more expensive.
Start by contacting at least three roofing contractors in your area to determine the average market price. Requesting quotes from multiple roofers will give you a better idea of how much you can expect to pay for roof installation. You can use this “market research” to make a more educated decision on the roofer you select based on price and quality.
Step 2: Determine How Much You Can Afford to Spend
If you’re reroofing a commercial facility, you may have a set budget that you can’t exceed. As a homeowner, you may also have a certain amount of money set aside to pay for home renovation costs each year.
Based on the information you have received from contractors in your area, determine how much you can afford to spend on a roof without going into debt. It’s best to create a range in your budget to compensate for additional material expenses or overtime labor hours needed to finish the project.
Step 3: Price Roofing Materials
Thankfully, you have your hands on this guide so that you can review the average prices you can expect to pay for your preferred roofing materials. Based on the budgetary constraints you have set, you can now determine which roofing materials you can afford for the square footage of your home or business.
If your budget allows you to choose from several different roofing materials, take into consideration other factors that could impact your investment, like longevity, weather resistance, and curb appeal.
If you’re having a difficult time determining how much you can spend on a new roof, use this simple equation to calculate the maximum monthly payment amount that you can afford when taking out a home improvement loan for your home or business:
Gross Monthly Income x Lender’s Debt-to-Income Ratio – Monthly Expenses
If your gross monthly income is $6000 with a lender debt-to-income ratio of .45 and total monthly expenses at $2000, it will leave you with…
$6000 x .45 – $2000 = $700 per month