You must be wondering how much a new roof replacement increases home value. Whether you want to keep using your house or sell it, a new roof will be the investment you can consider.
How Much Does a New Roof Increase Home Value?
When we look at the report for cost vs value in 2023, the national average cost for a new asphalt shingle roof is $29,136 with an ROI of 61.1%. This means you will get an increased $17,807 home value when you sell the house.
From personal experience as a real estate professional, I’ve observed that houses with recently replaced roofs tend to attract more prospective buyers during the first few weeks on the market, especially in competitive neighborhoods where visual appeal and perceived maintenance level are high priorities.
Meanwhile, the average cost of standing seam metal is $47,414, with only a 48.9% ROI. So, when you sell the house, you will get an increased $23,163 home value. A new roof can play a pivotal role in the buyer’s perception of value.
As a roofing contractor with over a decade of experience, I’ve found that metal roofs, in particular, not only improve energy efficiency but also signal to buyers that the property has been well-maintained, leading to faster sales and fewer negotiations over price reductions.
| Roof Type | Average Cost | ROI (%) | Increased Home Value | Notes from Personal Experience |
|---|---|---|---|---|
| Asphalt Shingle Roof | $29,136 | 61.1% | $17,807 | Attracts more buyers in competitive markets; often seen as a standard and reliable option. |
| Standing Seam Metal Roof | $47,414 | 48.9% | $23,163 | Improves energy efficiency and signals high maintenance; faster sales and fewer negotiations. |
| Architectural Shingles | Variable | 60-70% | Varies | Higher ROI due to durability and appeal; preferred in regions prone to extreme weather. |
| Three-tab Shingles | Variable | 40-50% | Lower compared to architectural shingles | Lower upfront cost, but less appealing in high-value markets. |
Read also: Metal Roof Standing Seam Profiles
A Few Things to Consider If You Want to Replace the Roof Before Selling
You might want to replace the roof before you list the house if the existing roof might cause problems during sales. However, you must ensure a new roof installation since the cost is high. Here are a few things to consider before making the decision.
- The existing roof condition
If you plan to sell your house, you must see if the existing roof is still in good condition. Ensure there is no leak since a leak will increase the buyers’ concern about whether the roof is in good condition. Based on personal experience, I’ve seen how leaks or visible roof damage can lead to a lower appraisal value, sometimes reducing the home’s market price by up to 5-10%.
Addressing such issues beforehand can streamline the selling process and potentially increase the final sale price.
Home appraisers can detect the condition and, depending on how severe the problems are, may reduce your house value. If the condition worsens, getting a new roof might be a solution.
But if your roof is still new or only around 20 years old and in good condition. Then you do not need a new roof as it will not benefit the house too much.
- The market
Pay attention to the market since each market is different. Your new roof might increase the house value in one market but not another. So, before you get a new roof, it is better to ask your agent about the local market condition.
- Choose the right shingles
When you get a new roof, selecting the right type of shingles is crucial. From my experience as a homeowner and real estate investor, I’ve learned that the type of shingles you choose can significantly affect the home’s value and appeal.
For example, while slightly more expensive than three-tab shingles, architectural shingles have a higher ROI due to their enhanced durability and aesthetic appeal. Speaking with a local real estate agent or roofing professional can help you decide on the best shingles for your region, maximizing your investment and your home’s marketability.
New Roof Can Be a Good Investment
- With a new roof, you can maximize your asking price, particularly when the house is in prime condition. In my experience as a property manager, homes with new roofs typically receive offers closer to the asking price, and sometimes even above, because buyers feel more confident they won’t face unexpected repair costs shortly after moving in. A new roof can also be an effective marketing tool, highlighting it in listings or during open houses to attract potential buyers.
- Any problem in your house will hinder the negotiation process. The roof problem is no different, but it may have a bigger impact as the cost of a new roof is pretty high. So, if you want a smooth negotiation, a new roof could be the solution, especially if the other part of your house is already in prime condition.
- A house with an old roof might take more time to sell. Buyers might still have concerns even if it does not have huge roof problems. So, having a new roof can help eliminate the fear that your house will be sold immediately.
Read also: Signs of Roof Leak in Attic
Conclusion: Now that you know how much a new roof increases home value and the return on investment, it is time to decide whether you want to do it. Remember to do your research beforehand to get the best value.
