Remodeling’s 2019 Cost vs. Value Report found that a new asphalt shingle roof is worth the cost. The report shows that spending $22,636 on a mid-range quality roof leads to an average value increase of $15,427. This adds up to about 68% of your original investment.
If your roof needs replacing because it’s old, damaged, or you just want to boost your home’s look, you’re not alone. Many homeowners are looking at their roof as a smart way to invest in their house’s worth. Making the right choice is crucial. Our guide will dive into ways to get the most value from a new roof. Plus, we share tips on financing your roofing project to meet your home improvement goals.
Key Takeaways
- A new roof can increase a home’s value by 60-70% of the investment cost on average.
- The actual return on investment depends on factors like roofing material, market conditions, and the condition of the existing roof.
- Financing options such as home equity loans, HELOCs, and contractor financing can make a new roof more affordable.
- Replacing an old, damaged roof is generally seen as a worthwhile investment, as it can turn away fewer buyers and may be legally required in some cases.
- Consulting with a reputable roofing contractor and local real estate agents can help homeowners make an informed decision about the best roofing solution for their home and budget.
Quantifying the Value Boost from a New Roof
When you renovate your home, the effect on its value can change a lot. Studies on the return from a new roof have varied, with some showing big gains and others showing small ones. But many homeowners find that a new roof can increase their home’s value.
Conditions that Maximize Roof Replacement ROI
The return on a new roof can be high under the right circumstances. The state of your roof, the local market, and the materials you choose are key. If your roof is old or damaged, replacing it could significantly raise your home’s value.
Research shows spending about $22,636 on a midrange asphalt shingle roof can increase value by $15,427. This results in a 68% return. But, some studies suggest you might get back even more, like the 109% return found by the National Association of the Remodeling Industry (NARI).
The local housing market also affects your return, with some areas showing higher yields. The type of roofing materials matters too. Sometimes, using more expensive materials doesn’t guarantee a higher home value increase.
Contractors like Local Roofer Pros can guide you through these decisions. They help you understand the return expectations and choose wisely. This way, your investment not only makes your home look better but also increases its selling price.
| Home Improvement | Average ROI |
|---|---|
| Garage Door Replacement | 88% |
| Minor Kitchen Renovation | 85.7% |
| Mid-Range Bathroom Renovation | 66.7% |
| HVAC Conversion | 103.5% |
| New Roof Installation | 60-68% |
“The average return on investment for installing a new roof is around 60 to 68 percent.”
New roof equity
Getting a new roof is a big deal, it can really boost your home’s worth. But the value isn’t just in what you might sell it for. A new roof also lowers your energy costs. This means you save money each month, which helps you build more equity in your home.
A fresh roof could also cut your home insurance costs. Plus, when you’re ready to sell, a new roof makes your place more appealing. It might sell faster and at a better price. Choosing a well-regarded local contractor, like Local Roofer Pros, for your roof job is a wise move. It adds overall value to your house.
Financing Options for a New Roof
If you need money for a roof, you’ve got choices:
- Home Improvement Loans: These loans help you pay for the roof at rates between 6.99% and 36.00%.
- Home Equity Loans: Using your home’s equity can get you a loan with fixed rates for up to 30 years. This might mean smaller payments.
- Cash-Out Refinancing: Refinancing your house and pulling out some cash can also work. This method often has lower rates than a home equity loan.
- Insurance Claims: If weather or another event damages your roof, your insurance might cover a new one, after the deductible.
- Financing Through Contractors: Companies like Local Roofer Pros sometimes offer their own financing. They can set up a plan that fits you.
Look at what each option offers to see what might be best for you and for the money you have. Thinking through your choices helps you maximize your home’s value and equity.
“Investing in a new roof can be a smart move to increase the overall equity and value of your home.”
Conclusion
A new roof is not just an expense; it’s an investment. It can boost your home’s value. To get the most out of it, consider the roof’s current state and choose the right materials based on what’s popular locally.
A new roof doesn’t just look good; it has practical benefits too. Your home will use energy better. You’ll also spend less on keeping the roof in shape. Plus, the look of the roof can make your whole home more appealing.
When you’re ready to sell, a new roof can attract more buyers. It might even help sell your house faster and for more money. It’s crucial to pick a skilled contractor, like Local Roofer Pros, to do the job. This ensures the work is top-notch and builds your home’s worth.
There are many ways to fund a needed roof replacement. You could go for a loan or refinance. Before choosing, think about the material and installation costs. Also, consider how it might boost your home’s value. This will help you make a choice that fits your finances and goals.
FAQ
How much can a new roof increase home value?
What conditions maximize the return on investment (ROI) for a new roof?
How else can a new roof boost home equity besides increased value?
Source Links
- https://www.iko.com/blog/does-a-new-roof-increase-home-value/
- https://www.creditkarma.com/home-loans/i/will-new-roof-increase-home-value
- https://www.zillow.com/learn/should-i-replace-my-roof-before-selling/
- https://www.bankrate.com/homeownership/home-improvements-add-the-most-value/
- https://www.visexterior.com/blog/how-much-value-will-new-roof-increase-to-house
- https://www.investopedia.com/ask/answers/041015/what-adjusted-cost-basis-and-how-it-calculated.asp
- https://www.lendingtree.com/home/home-equity/how-to-finance-a-new-roof/
- https://www.foxbusiness.com/personal-finance/credible-money-coach-home-equity-options
- https://homesourceroofing.net/exploring-payment-options-for-your-new-roof-cash-financing-home-equity-and-insurance-claims/
- https://www.mrroof.com/blog/does-a-new-roof-increase-the-appraisal-value-of-a-home/
- https://www.thetaxadviser.com/newsletters/2017/jun/expensing-roofing-costs.html
- https://rennisonroofing.com/buying-a-house-that-needs-a-new-roof/
- Local Roofer Pros