If you’re going to spend a serious chunk of change on a new roof for your home or business, you want to know that it’s well worth the investment. One frequent question asked by homeowners and business owners is if the upgrade of a new roof will improve their property value.
Replacing a roof in order to improve property value is a delicate matter.
If you plan to sell your home in the near future – i.e. the next several months – the replacement of a leaky or visibly worn roof may be nonnegotiable. Even though you may not be able to raise the asking price of your house to cover the cost of a new roof at close to $10,000, a leaking roof could deter a prospective buyer.
However, if you’re considering replacing the roof on your home or business to improve aesthetic appeal, it may be another matter altogether. If your roof is already in fair to good condition, a complete roof replacement isn’t likely to boost the value of your home or business.
Most real estate experts estimate that a new roof can increase the value of a home by 15% to 40%.
To paint a clearer picture, in a best-case scenario a $200,000 home could become a $280,000 home with the simple addition of a brand-new roof made with in-demand roofing materials. As a rule of thumb, if a home is worth more, it has the potential to gain even more value from a new roof installation.
For a business, installing a new roof could improve property value based solely on energy-efficiency. Most business owners are focused on stretching their dollars in today’s economy. If you plan to sell your commercial property in the near future, a new roof upgrade with better insulation from energy-efficient roofing materials to lower annual energy costs could become an attractive selling point.
To provide a final answer, a new roof has the possibility to improve property value in a number of intangible ways, beyond a higher sales price. A new roof may attract a buyer faster based on:
- Curb appeal
- Reduced maintenance costs
- Modern upgrades
- Reduced health hazards
- Improved safety
Understanding the basics of residential and commercial roofing wear and tear will help you to make a more educated decision when repairing or replacing a roof.