Finding out you need a new roof may initially feel like a gut punch, especially if you weren’t expecting it. But there is a good reason to replace it. According to real estate professionals in the Remodeling Impact Report, a new roof is one of the few home repairs that will eventually pay for itself.
The 2019 report indicates that the average cost of replacing a roof is $7,500, but the cost recovered at the sale is $8,000. That’s a return on investment (ROI) of 107%, the highest of any other home repairs in the study. The report also indicated that 39% of realtors in the survey suggested replacing the roof to sellers, and 33% said that the new roof helped close a sale.
This report determined the projects with the greatest value with input from members of the National Association of Realtors and the National Association of the Remodeling Industry. Members of the National Association of the Remodeling Industry provided the cost estimates for the projects included in the report, and the realtors estimated how much value each of those projects adds.
An old roof can be a concern when you’re trying to sell your house, especially if the buyer is using a VA or FHA loan, requiring the roof to be in decent shape. But whether you should replace your roof depends on your unique situation. Unless the roof is really old, a realtor may not recommend replacing it. Most potential buyers may not notice the roof immediately, so replacing it may not always be in a seller’s best interest. Some real estate agents may recommend considering the roof’s condition when pricing the house and expecting it to come up during negotiations.
The report also lists other projects that offer a lot of bang for your buck. New wood flooring has an estimated ROI of 106%; hardwood floor refinishing, 100%; a new garage door, 95%; and HVAC replacement, 85%.
Any opinions are those of Thomas Fleishel and not necessarily those of Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Material prepared by an independent third party. Source: money.com