Will a new roof increase home value?

I went to an appraisal the other day. The home owner asked me if a new roof will increase my home value. Do you know what I told him? It depends. Let me explain.

If your roof is at the end of its economic life cycle (i.e. the shingles are beginning to curl and break and the roof needs to be replaced now), then you should replace the roof. This is because basic maintenance on your home will always help your home value or make your home easier to sell later. This is because no one in their right mind wants to buy your home when they know the roof is falling off and a leak is beginning to take place on the inside of the ceiling. Why would they, if they can buy the home down the road that already has a brand new roof. If your home is not maintained, the buyers may think that you do not maintain the rest of your home and will not buy for these reasons. If your getting a refinance, the bank will make you replace your roof before they fund your loan.

Will replacing the roof with a more expensive roof increase your home value?

The old roof you replace should match your neighborhood. This is because if you put a cheap roof on and all of your neighbors have very noticeable and nice roofs, it will make your home look cheap. If everyone in your neighborhood has a composition roof and you decide to put on a cedar shake roof, now your home does not conform to your market area. This may or may not influence the value of your home. But in most cases the difference between a 20 year roof vs. a 30 year roof may not be noticeable at all. In this case, No, this will not matter for the purposes of the appraisal and/or the value of your home. This is because if the roof is newer and it is well maintained, this is all you will need. Your home will pass the appraisal and last another 20 or 30 years. Buyers in your market will not see any major differences in a roof that should last 20 years vs. 30 years.

So the only factor you will have to decide is if you will be staying in the home for 20 or 30 years or longer and if it will benefit you to replace the roof with one that will last longer. If you plan to stay in the home 30 years or more, by all means, replace the roof with the best roof you can. If your not sure, go with the less expensive roof.

A more expensive roof will not increase or decrease your home value. A roof that is at the end of its economic life cycle will decrease your home value by at the very least, the cost of a new roof. If the roof is beginning to leak, this may cause unforeseen damaged such as rotting wood and/or mold issues. If your home gets to this point, you’ve really did it now. You will need extensive repair before you can sell or refinance your home.