When selling a home, the main goal is getting top dollar for the transaction. Although the overall market is the largest factor in establishing a price range for your home’s value, the home sales price will also depend on the condition of your home.
Large structural elements, such as electrical systems, plumbing systems, air conditioning and the roof have the largest effect on the market value of your home. Often, Sarasota home sellers wonder just how much the age of the roof will affect buyer offers, appraisals, and the ultimate sales price. Here are some guidelines.
How the Condition of Your Roof Affects Home Sales Price
Let’s start with the roof condition, regardless of age. If your roof is in need of repair, your prospective buyers will likely only offer the estimated value of the home minus the cost of the roof repair – or offer market price with the contingency that you fix the roof to their satisfaction prior to closing. Either way, the price of the roof repair will come out of your pocket.
A roof replacement is a bit different. Studies have shown that putting a new roof on your home is actually one of the best returns on investment you can make as far as home improvement, with a nearly 100% ROI. This means that with a new roof, you may actually be able to get more than you were hoping for. As a newly installed roof now has an expectation of approximately 30 years (dependent on materials) a new homeowner will find a fresh roof to be a huge asset and selling point.
Curb appeal and first impressions are very important in a buyer’s market, so keeping the roof looking and operating as it should is critical to your success.
How the Age of Your Roof Affects Home Sales Price
You may think that the age of the roof would dictate the condition of the roof, but this is not always the case.
A roof may only be a few years old, but if the materials were shoddy or the installation not performed properly, it could be in worse shape than a 20 year old roof. In general, the age of the roof is tied to the condition in a home sale in one key way.
If during the home inspection it is determined that only 3 years (or less) remain on the life of the roof, – even if it is not currently leaking – the prospective home buyer may not be able to obtain insurance on the home. This means they also will not be able to obtain a mortgage, so the deal cannot go forward. If your roof is within 3 years of its usefulness expiring, according to a roofing expert, and you cannot afford to put on a new roof, your prospective pool of buyers lessens considerably. If a loan cannot be obtained on the home, you will need a cash buyer – and cash buyers are notoriously interested in getting a much better price for your home.
Conversely, as discussed, a new roof generally adds at least its cost to the value of your home. A properly installed, quality, well-maintained roof remains a benefit to the homebuyer well into its usefulness, even after 15 years.
In the end, a newer roof does allow you to sell your home for its top value, while a shoddy or damaged roof will scare away many buyers . If you are selling a home which is in need of roof repair or replacement, it is best to work with the buyer, their insurance company, and a local Sarasota roofing contractor to negotiate a way to get the roof where it needs to be – for the best financial benefit of everyone involved.
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