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Does a New Roof Increase Home Value? Here’s What You Should Know

For many people, their home is their biggest investment. When it comes time to sell, you want to ensure you’re getting the most value you can. For this reason, it’s always good to make a few improvements to spruce up your property before it hits the market. This can be as simple as repainting your doors, landscaping your garden, or even getting rid of unnecessary clutter.

However, there is one significant home improvement that could be most valuable – installing a new roof. Nobody wants to deal with the hassle of a reroof, which consequently makes it a powerful marketing tool. 

So, how does a new roof impact your home’s value? Can you expect it to increase? Let’s find out! 

Why should you consider replacing a roof?

Sure, a few cracked shingles probably won’t make your buyers run away. However, no amount of upgrades will redirect attention from major property detractions. If your roof is leaking or has clear signs of poor condition, it might be wise to replace it. Otherwise, you risk getting fewer offers (especially from buyers looking for a place that’s move-in ready), and you may face negotiations for a lower sale price or even a request for a roof replacement.

How a new roof increases home value

Over the years, many reports have asked, ‘Does a new roof increase home value.’ The results have been mixed. According to a 2023 report,  a new roof generally increases the home’s value by $17,800, which is 61% of the initial investment. Some research has shown even more promising numbers. For example, a report by the National Association of the Remodeling Industry (NARI) states that new roofs could provide a 109% return. This means that getting a new roof could be an opportunity to make a profit.

As you can see, replacing a roof is usually a good investment. But before you jump into the process, there are a couple of factors you should consider.

Roof condition

A good rule of thumb is to inspect your roof at least once a year. Watch out for missing shingles – they are never a good sign. Likewise, if you notice any water damage or if your shingles start to cup, claw, or curl, it might be time for a replacement.

However, if it seems like your roof is in good condition, there’s no need for an immediate upgrade. Remember, you can always talk to a roofing contractor – they’ll give you the necessary recommendations.

Another important factor to think about is the state of your local real estate market. Is it a seller’s or buyer’s market? When the competition is high, a roof replacement could give your home an edge over other properties. In contrast, a seller’s market means you don’t have to stress as much. You’ll have a big chance of selling your property even without a new roof.

Choice of materials

Whether or not a new roof will have a positive impact on your home’s value depends on the shingles you choose. To maximize your return on investment, it’s best to opt for midrange roofing materials that are both durable and aesthetically pleasing. 

Although more expensive options like metal roofing are known for their quality and energy efficiency, the investment might not pay off if you plan to sell your home soon. An asphalt shingle roof, on the other hand, may often be more cost-effective than any other home remodeling project.

Remember that your home renovations should match your neighborhood. There’s no point in spending thousands on designer shingles when all your neighbors have less expensive options. No matter how much you invest, your home’s value can’t increase very much above your neighbor’s.

The verdict: Does a new roof increase home value?

Your roof has a significant impact on your home’s overall curb appeal. It’s one of the first things people notice, so you want to make a good impression.

If your current roof is in poor condition, it could be beneficial to replace it. Remember that a worn-out roof comes with a number of problems, which may lead to costly damage. So, even if you’re not planning on selling your home soon, getting a new roof can save you money down the line.

Another way to boost your home’s value? By installing solar panels. According to reports, they can increase your property’s value by as much as 14%. Learn more about Tesla Solar Roofs and other roofing solutions here.

Fact Checked by Lita Legzdina 11/15/2024