Calculating the Return on Your Roof Investment
If you’re looking to increase the value of your home, you might want to consider investing in your roof. Whether you fully replace your roof or simply replace outdated elements, your roof ROI could end up being substantial. When deciding whether or not to invest in your roof, you’ll want to consider the predicted ROI to determine the most effective roofing solution for your home.
Ready to raise the roof? Here are the best ways to maximize the ROI on your home improvement project.
Can I Profit From Investing In a New Roof?
Since a new roof isn’t as glamorous as other renovations, such as a kitchen remodel, it’s fair to wonder if the roof ROI will actually pay off.
Here are some signs that your home could benefit from a new or renovated roof:
- Damaged or missing shingles
- Changes in the slope of your roof like sagging
- Chipping or blistered paint on interior walls
- Mold along the perimeter of your roof
- Grain or large chunks of sandy buildup in gutters
While some roofs need attention to maintain the structural integrity of a home, you might also simply want to update the aesthetics for increased curb appeal. Either way, new or recently improved roofs can be a valuable selling point if you’re looking to do so in the near future. Let’s go over the short term and long term value of investing in your roof.
Calculating Short Term Value
The short term value of replacing your roof is most commonly expressed in energy savings.
The U.S. Department of Energy has developed a Cool Roof Calculator to determine energy cost savings associated with energy-efficient roofs relative to standard black roofs. In order to properly use the calculator, you’ll need information on the solar reflectance and infrared emittance of your new roof. You’ll also need information such as the summertime cost of electricity, the energy source for heating and the heating system efficiency.
If you have trouble finding some of those values, the government has created a resource for helping you collect the data to input.
Calculating Long Term Value
Investing in a new roof will help increase the value of your home when you go to sell. Depending on the material used, a new roof can last anywhere from 20 to 50 years—with asphalt being on the lower end and slate, copper and tile roofs being on the higher end. The value of your home increases when you install a new roof to replace an old one nearing the end of its life expectancy.
To determine the approximate roof ROI when it comes to resale, Remodeling Magazine has compiled national statistics on remodeling projects and the value those renovations had at the time of resale. You can select your region and download a report to get data on resale amounts in your city.
How Much Will My Roofing Project Cost?
Roofing repairs and replacements are usually calculated using the cost of materials, labor and square footage of your new roof. You can expect your roof replacement cost to fall somewhere between $5,200 and $12,085. Avoid other hidden costs of roof replacement by planning ahead.
Your roofing cost will be impacted by the roofing material you use, your home size, the slope of your roof and local labor rates. You can calculate an estimate of your roofing costs using an online roofing calculator.
Four Ways to Maximize Your New Roof ROI
If you’re going to spend the time and energy to replace or repair your roof, make sure you understand the roof replacement process and choose a strategy that maximizes your roof ROI. Here are four common ways to make the most out of your roofing replacement.
1. Avoid laying new shingles over the originals
While it can be tempting to cut costs by laying new shingles over what you currently have so you don’t have to pay for the removal of old material, doing so will probably hurt you in the long run. This way of laying shingles not only traps heat but creates unnecessary added weight to the structure of your roof. Not to mention, real estate professionals involved with selling your home will have to phrase your roof as “newly layered” rather than “fully replaced,” which can cause confusion and unease in a potential buyer.
2. Don’t automatically choose the cheapest material
As we mentioned when discussing long term roof value, the lifespan of your roof is contingent on the material you choose. While a new roof is generally a good selling point in itself, a smart buyer will be able to spot a cheap replacement from the street and ask about the lifespan of the roof. If possible, it’s a good idea to choose a mid-range material.
Additionally, make sure you select a material that enhances the appearance of your house and blends in with the other homes in your neighborhood.
3. Heavily market your new roof in resale
If you’ve spent time and money on a new roof, why not feature your efforts when you resell? Certain roof models have benefits that will appeal to buyers, like energy-efficient roofs that can save buyers money on their monthly energy bill. Feature your recent roofing improvements to increase your likelihood of a quick sale and maximum return.
Here are some ways your can feature your roofing improvements upon resale:
- Include “brand new roof” or “energy-efficient roof” in the title of any online listings
- Ask your real estate agent to mention the new roof before prospective buyers enter your home
- Feature the lifespan of your new roof to entice buyers and emphasize added value
- Showcase the roof in listed photos of your home
4. Offer buyers a warranty transfer
Many roofing companies provide a warranty that can be transferred for a fee. If you offer to transfer your warranty to buyers, you’ll show that you’re willing to go the extra mile for their business. A warranty transfer will allow them to make repairs for a discounted or completely free rate, meaning they’re covered in the unlikely event of a problem with your recent roofing repairs.
Though the price of a warranty transfer differs, you can expect to pay a few hundred dollars on average. If a warranty transfer finalizes the agreement for a buyer, the roof ROI could be well worth the cost.