Does a New Roof Increase Home Value?
After several years of living under the same roof, the time has finally come. You’re putting your house up for sale. Admittedly, it has most likely increased in value quite a bit in the past few years. But can you one-up that? Will a new roof increase your home value?
The answer to that question is a bit complicated. There’s no doubt that a new roof will increase the listing price, but its value is somewhat of a gray area since you’ll also need to consider the roof's cost. And, when all is said and done, the real question is if a new roof is a good investment or not.
That’s exactly what we’ll discuss below. After years of expertise in the SoCal roofing market, we’ve crunched down the numbers and have a definitive answer as to how much, if any, value new roofing brings to your home.
Will a New Roof Increase Appraisal Value
Let’s get one thing straight. Any type of remodeling project you do will increase the value of your house, even if it’s a slight one. So, yes, a new roof will make your house more expensive and increase its appraisal value.
But there are a few caveats to this. Starting off with the main one, new roofs aren’t going to recoup their total costs. In Southern California, asphalt shingles will usually bring a return on investment (ROI) of 60%. On the other hand, metal roofs, which are considered a much more long-lasting option, have a dreadful ROI, sitting at around 45%.
Simply put, regardless of the roofing material you choose, the increase in home value will be around 50% of the total installation cost. This leads to a different question: how much can a home’s value truly increase after a roof replacement?
How Much Does a New Roof Increase Home Value
The actual home value increase new roofing brings, depends on several factors. From our experience, the main one is the condition your roof is currently in.
Here’s a quick example. If your roof is 5-10 years old, but it’s still in excellent condition and you’ve properly maintained it, installing a new one will barely bring any value. Think of this; why would a home buyer pay extra for a roof replacement when it’s evident that it’s not required?
Another critical factor is the current market conditions. For example, while the current (May 2023) ROI for metal roofs is just below 50% on the West Coast, these numbers reached 60% in 2022. Also, taking a trip to the East Coast, the ROI for metal roofs is just above 50%, which is around 10% more than SoCal’s.
But, enough of all these percentages. The last factor we think plays a big part in a new roof’s value is the type of shingles (or roofing material) you use.
Going a bit more in-depth with this, if your house is in an area that’s full of traditional shingled roofs, there’s no reason to go for premium ones. In fact, we’d go as far as to say that it’ll lower the ROI, as it’ll make your home stand out more.
How a New Roof Adds Home Value – 3 Reasons to Install One
Let’s take a quick U-turn. Say, you’ve already decided you want a new roof, regardless of how much value it’ll provide. That’s a great idea! In fact, there are a few reasons why you should install a new roof without worrying about its ROI.
Higher Offer Price: As stated above, your house’s price will increase no matter what new roof you install. The new owners won’t have to worry about a roof replacement and will happily pay a premium for that.
More Offers: Few people want to go through the hassle of installing a new roof. So this will shorten the sale process, as more and more home buyers will know they won’t need to replace the roofing any time soon.
Curb Appeal: Regardless of its monetary value, a new roof will make your home look better. This will, in turn, provide more value to you, knowing that you’ll have the best-looking roof on the block.
Is a New Roof a Good Investment
If we base this solely on the monetary value of new roofing, no, it’s not a good investment. Unless your roof is in really bad shape, a few repairs or a reroofing project will be much better options.
These won’t set you back that much, and they might provide you with a significant ROI increase, potentially leading to a profit when you sell your home. But you’ll still need a good roofing contractor to get this done. And, if you’re in Southern California, look no further than us!
At Roofing Wise, we pride ourselves in doing roofing projects the wise way. We’ll take care of your roof replacement and assist the new owners with the best roof maintenance. Contact us at (833) 315-7663 for a free estimate!