How Much Value Does a New Roof Add (2023 Update)
January 24, 2023
6 minutes read
If you are considering selling your home, you may ask, does a new roof increase home value for you? Consequently, anytime you upgrade major elements of a home, it could help boost the curb appeal and resale value and make it a more attractive option for potential buyers.
But how much value are you looking at after spending thousands on a new roofing system? The typical answer will depend on several factors. But, on average, you can expect to add an extra 60 to 75% of your roofing investment costs to the value of your home.
Therefore, you can calculate how much value a new roof provides by taking the total cost of an installation and multiplying it by 60 to 75% for a general estimate.
External Elements That Affect A Home’s Value
A brand-new roofing system can be a terrific selling point for many buyers and sellers. However, external factors can directly impact how much of the total value a new roof will add to the home.
Some elements that may alter your home’s value, even with a new roof, include:
- The current market value
- The existing roof’s condition
- The roof’s size and structure
- The materials
The Current Market Value
The current market value will be a significant factor in how much value a new roof will add to a home.
For example, you may spend thousands of dollars on the best roof possible, hoping to increase the resale value. However, if the home is in a relatively low market value area, even the best house may not attract a buyer if it has no nearby amenities.
There will be a tipping point where the cost of a new roof will bring less return on investment. Therefore, before you install a new roof on your home, look at your neighbor’s roof. If everyone in your community uses shingles, upgrading to metal may not provide the boost in value you are looking for.
The Existing Roof’s Condition
The condition of your existing roof materials can also indicate how much value a new roof will bring to your home.
For example, if you have a home with a roofing system that is worn down and ready for replacement, selling a home without a new roof can be challenging. In this case, homeowners can see a direct increase in the home’s value with a complete installation.
In contrast, if your existing roof is only around five years old, there is still plenty of life left in the materials. Therefore, for a homeowner to replace a roof at this time would be costly and not as profitable since it won’t bring much-added value to the current home.
The Roof’s Size and Structure
Another consideration on how much value a new roof will bring your home is the size and structure of your roofing space. Average homes ranging from 1,500 to 2,500 square feet can typically benefit from a new roofing installation and bring a great return on investment for the homeowner.
However, you may see less return if the roof is extremely large or contains many valleys, steep pitches, peaks, or tricky sections. Since the labor costs for a roof installation are typically 60% of the total price, more intricate roof structures may increase that, resulting in less additional value after a complete installation.
Homeowners will try to get what they put into a home, and the materials they choose will help drive resale prices.
Asphalt shingles are the least expensive roofing material. If your home needs a new roof, you can easily install shingles in only a few days, providing an excellent barrier lasting from 12 to 20 years. Consequently, choosing inexpensive shingles for your roof will not boost the house’s value as much as using luxury shingle models.
For comparison, if you choose to upgrade a house from asphalt shingles to high-quality metal roofing, the value could jump exponentially. This result comes from a roofing material that will last longer and is more durable than shingles. In addition, other roofing products can give new homeowners peace of mind and eliminate the need for a roof replacement until much later.
Why Add a New Roof To a Home Before Selling?
Having the newest roofing materials is a great way to grab a potential buyer’s interest. Many homeowners don’t want to purchase a new residence to replace or fix problems shortly after moving in.
A home’s roof is a significant investment and can be costly to replace if there are problems. However, if your roofing system is aging and close to its replacement date, it could be a better financial decision to add a new one before putting the house on the market.
Additionally, if you get an appraiser to do a report on your home for your realtor, they may suggest adding a new roof. This advice could be due to its age, conditions, or lack of energy efficiency. If you have worn, missing, or damaged roofing materials, addressing these issues can help your chances of selling the home.
Does a new roof increase home value? To help gauge the best return on investment when it comes to a new roof, you should consider the following elements:
- Will the new roof last long enough before selling that it still provides a durable barrier?
- Does the installation cost outweigh what a new roof will add to the home’s value?
- Will a new roof improve the home’s structure, or are there other concerns?
- Does a new roof improve the insulation rating or provide better energy efficiency?
Consequently, installing a new roof on your home can add between 60 and 75% of the replacement cost to your property value.
So if you spend $20,000 replacing your roof, you could expect your home to increase in value between $12,000 and $15,000 more. This return on investment can be a profitable move when selling your house.