Should you repair or replace your roof before selling? At Team Construction Roofing in Denver, we can help you figure out what your best option may be. Sometimes the decision is very clear-cut: you roof has a large hole, you will need to replace it to sell your home. However, most situations are not as clear-cut. If your 20-year-old roof is in decent condition, you may wonder whether you really need to spend the extra money replacing it before selling.
ROI (Return on Investment)
Roofing is generally not considered a fun thing to spend your money on replacing for most homeowners. Roofing can be expensive and as a result, it can become a point of negotiation in a sale. Savvy sellers recognize that a buyer will want to pay less if the roof is in disrepair or in need of replacement. These same sellers also understand that very few renovations will earn back every dollar spent, making every renovation a potential loss in revenue. The general return on investment for roof replacement averages 53.4% while a minor roof repair averages 61.7%.
Take Stock of Your Home
To make your decision, you need to take overall stock of your home, the market, and current sales activities. A realtor can help you determine most of these items. Getting a roof inspection is an excellent way to get a true assessment of the issues that potential buyers will see. Do this before you put your home on the market. If the inspection points to issues, this will turn up on any inspection a potential buyer has done as well. If your roof turns out to be in great shape, you can also provide buyers with a certificate showing the condition and estimated life expectancy.
What’s the Real Damage?
If the inspection shows issues with your roof, find an expert to get complete details on what a repair or replacement will cost. Because costs will vary from company to company, get at least 2, preferably 3, estimates so you have a range of quotes to consider. Knowing the real cost will reveal whether you can afford the repair or replacement, as well as how much you can expect to adjust your home’s price if you do nothing.
When Should You Spend Money Fixing It?
If you are in a hurry to sell your home, it may be worth the money to make the repair. Well-maintained homes generally sell faster because they show better. Needing to repair the roof is one less thing that a potential buyer needs to consider. Also, the useful life of your roof might come into question when selling your house, particularly if your roof is older. Have a roofing specialist, such as our own Team Construction Roofing in Denver, perform maintenance on your roof and again, certify your roof after an inspection to help you when facing inquiries about the condition and life of your roof.
Of course, a new roof is a great selling point for buyers, depending on your market. Not having to repair or replace a roof for ten to twenty years can seal a potential sale for you.
Why Consider Selling As-is?
If you can’t really afford to repair or replace your roof or you don’t have time to spare on such a project, selling your home as-is may be your best option. You only need to be aware that this decision might lower your final sale price for your home. This is really where being armed with information on the pace of your local housing market, as well as sales information for comparable homes in your area, will be key. Surveying real estate agents who are familiar with your home’s area or working directly with your personal realtor are great ways to obtain this information. Be aware that some websites may have inflated or unreliable information. Realtors usually work with actual sales information rather than aggregated estimates. If you use a website, be sure to research its reliability.
If you are selling in a highly competitive market, also known as a seller’s market, buyers are frequently willing to overlook the short-comings of potential home because buyer’s become focused more on the price. This will usually be good news for you. Your roof may not make any difference in your final price in a competitive market.
Consider a Lower Selling Price
Depending on your market, you may want to lower the price of your home up front to compensate for the condition of your roof. Lowering the price may attract potential buyers to your home more readily. This could also attract multiple bidders, which may put you in a bidding war situation—great news for any seller. In a bidding war situation, potential buyers are much more willing to waive inspections entirely. This removes later re-negotiations that occur following inspections. Pricing your home in the mid to low range in comparison to other homes for sale in your area may eliminate needing any repairs.
Be Aware of Lender Approval
Should you decide not to repair your roof or replace it, you need to be aware that this choice may require lender approval. If the repair is a minor one, it is doubtful that your buyer’s lender will take issue with your decision. If your roof is nearing the end of its life or if the needed repair is larger, the lender will often make the repair or replacement a condition of the loan’s approval. If that happens, the cost typical becomes the responsibility of the seller. At this point, repairs will be required prior to closing. Some buyers may choose to meet in the middle, but you cannot rely on this.
The Bottom Line
Should you repair or replace your roof before selling? Hopefully, the above information has helped you understand how to make your decision. If you need a roof repair or replacement, contact us at Team Construction Roofing in Denver and we can help get you closer to selling your home.