New roof and resale value
 

I have a 15 year old roof. If I were to replace it and put my house on the market in the next year or so would the increased value be high enough to recoup most of the cost? Or is it wiser to just wait and let the new owners replace it? I live in The Village of Fernandina.

I would speak to a couple of real estate folks for that info.

When we moved here thought of paying off bond and was told by several agents not worth it as people will often not factor that into the cost of the house

You are right. I figured that real estate professionals also peruse TOV. Of course it is important that the appraised value would also reflect the new roof in case the new buyers are going to get a mortgage.

You may be forced to replace the roof as soon as the insurance companies realize the age of the roof. I already know of 3 neighbors with houses about 6 months newer than ours all insured by Progressive (including ours) that had their insurance not renewed.

You will NOT recoup your investment.

The buyer's insurance company may or may NOT care.

I have Progressive and they are not renewing any home policies in Florida. Several people I know have been able to find insurance companies that will write a policy. I am unaware of anyone forced to replace a 15 year old roof because of insurance considerations.

Anytime you do an upgrade to your house, you should never expect to recover the entire cost. I have looked at houses where the agent will present me with a list of upgrades where the seller is asking for 100 percent of the cost. That is absurd.

The OP has asked if he should wait to install a new roof, I would wait. I have a villa for sale with a new roof, no one mentions it as a buying advantage despite it being posted in the propery description. No one.

Depends on what the upgrades were and when they were done. Recouping 100% of the cost may be a savings for the buyer since costs to do it after they purchase their home will probably be more expensive. Plus, they don't need to go through the demo and reconstuction phases which is worth something unless they like living in chaos.

Did your realtor put in the description on realtor.com “new roof”?

You can search it - you’ll get something back, according to here, it’s about 56%. I would guess 40 to 50% of the value will be returned.
Access Denied

#10 Roofing Replacement (Asphalt Shingles)
Average return at resale: 56.9%

Roof replacement is an inevitable long-term cost of homeownership, particularly if you own an older home with a neglected roof. Replacing a roof with 30 squares of fiberglass asphalt tiles costs an average of $30,680, and you can make an average of $17,461 back at resale.

Fiberglass asphalt shingles are usually less durable than materials like slate or metal, but they are more affordable and one of the most popular types of roofing material you’ll find on homes. The shingles come in a variety of colors, allowing you to pick a tone that boosts curb appeal and best matches your home’s exterior. Other considerations are the wind rating and impact resistance of the shingles, especially if you live in an area that often sees high winds and hail.

Not sure who you are talking to, but I just bought in the last month. I was deep in the market for 6 months. Age of roof was one of the first considerations in EVERY house I looked at. A new(er) roof was a huge advantage in my (a buyer) eyes.

To the OP. As a buyer I didn't look at a new roof as something that increased the value of a house. I looked at an old roof as something that decreased the value of a house, I factored in a roof replacement cost in MY valuation of a potential purchase and adjusted target price accordingly. When I shopped for insurance on the house I bought, THEY were certainly interested in the age of the roof.

If I were a prospective buyer, and looked at, or was considering a property with a 15yo. roof in TV, I would definitely make any offer reflect replacement cost, whatever the asking price was.
Take it, or leave it.
Not in same category as some snagging or cosmetic upgrades regarding property condition.
JMTC.

Me too.
I looked at roof age, HVAC age and bond balance.
I knew I was replacing the kitchen no matter where I bought.

None of these would disqualify a house - location and lot were the #1 factor.

Assume that you have a house with a 15-year old roof that is worth $400K. Now, spend $20K on a new roof. Unfortunately, no one will pay you $420K for the house, and a bank appraiser will not increase the appraisal by $20K.

Wow! You and I really differ. My first consideration when buying a house, was the location of the home, near to what, and it’s elevation. Those things I cannot change. Roof is easy to change.

Really don’t matter, you’re going to take an offer that right for you. If not reject offer. Nearly all buyers try to get price knocked down for one reason or the other. Some use needs new roof, new A/C, new kitchen remodel, new bath remodel, new flooring, new paint. All cosmetic if they are in good serviceable condition. IMO you will never recover money spent on upgrades. If some one upgrades their going to want more, just way it is.

I don’t agree with that. I’ve seen numerous listings that mention in the description that the roof was just replaced or had been a year or two ago!
I don’t think the OP would recover the cost, but a lot of
buyers might like the fact, that they don’t have to deal with insurance issues or having it replaced!

Agree with this as a buyer. Three questions 1. Roof 2. AC 3. Bond. All will lower value if not within my reasoning.

To me, this is a no brainer. If you are selling a house, don't make any improvements. Just be more receptive to a lower price. I have seen listing agents talk sellers into making costly improvements. They are not doing the seller any favors.

My guess is no you will not. But how about offering a credit toward a new roof if the subject comes up. To start you could add the cost of the credit to the sales price.

I just renewed with Progressive.

This means you would only be looking for cash buyers, those who would have mortgages have to get insurance and they won't get it for a 15 year old roof.

According to zillow and Realtor.com housing prices in TV are decreasing in 2024. Whether prices will stabilize in 2025 I do not know. But you would be putting money into an investment that is now depreciating, I would suggest no., but up to you

Not necessarily. For buyers who need a mortgage and cannot get insurance, you can always include a new roof in the contract. But once you buy a new roof, potential buyers will discount the cost you paid for it. I suspect that a lot of houses being sold have roofs that are older than 15 years. They are not all uninsurable.

Putting a new roof on, assuming it's asphalt shingles will only improve your ability to sell quicker as a 15 yr old roof will hesitate if not turn away quite a number of buyers. If you replaced the roof with a metal roof, then you increased value, and no you never get back what you pay for it.

For example, when doing comps, you put in a pool for $100,000. Your value adjustment might only be 40,000. It will never be 100,000 or higher.

When I first bought in The Villages four years ago, the fact that the roof and HVAC system and appliances were only a year off and the bond paid off definitely convinced me to make an immediate full-price offer. That may not be the same as getting your money back, but if the alternative is no sale or sale for a lot less, it’s something like that. These days, if buyers discover before the sale is completed that they can’t get home insurance unless they put on a new roof, they may cancel the sale, require the owner to put on a new roof for the sale to go through, or ask for a cut in price. Wouldn’t you?

I would just point out that an individual buyer requiring a new roof for a guaranteed sale, and a seller installing a new roof hoping to recover the cost from an unknown buyer are two different situations.

Great advice.

I agree that most improvements will never be fully recouped when selling the house. I just was wondering what was the typical impact on the appraisal and resale value.

For a new owner, if the roof is 17 years old then there is the consideration that insurance will probably be more difficult to get plus they will have to pay for a new roof in the next couple of years or sooner. This would be even a bigger factor if they were trying to finance it.

I am not at the stage where I want to start dealing with real estate agents. If I did then I would feel that I had a moral obligation to list it with them.

I appreciate the feedback on this thread and overall it has been beneficial.

We just sold our home that was 15 years old. Roof was still in excellent condition. But we went ahead and put a new roof on anyway because we felt it would be an issue for many buyers. Our realtor agreed. Especially since insurance companies prefer your roof to be less than 15.

Did we recover any of the cost? That's hard to say. I would guess some, maybe 50% or less.
The home we moved to got a new roof in February, so that was a plus in our minds since the home is 17 years old.

Most real estate agents are happy for a seller to spend their own money for improvements and/or upgrades. It makes it easier for them to sell the house. But, remember that it is a conflict of interest because the agent benefits at your expense. I actually knew a seller who replaced laminate countertops with granite because their agent told them to do it. The only way I would spend a significant amount on improvements is after I tried and failed to sell the house without the improvements. A new roof is a huge expense to pay on a house that you are trying to get rid of.

I posted this same message on the topic of shingle damage.

My home is 12 years old, and I just had my roof replaced three months ago and so did a number of my neighbors, for most of us it was painless. The company that replaced mind did all the approval work down to the color I was permitted to use and my insurance company which is Farmer had me only pay a $500 deductible.
Plus, they finished the job in three days even though they had to stop for rain occasionally.
One of my neighbors point out to me insurance companies would rather pay for a roof replacement, than having to pay not only for a roof replacement but also having to pay for whatever damage could be caused by rain pouring into the home because the roof was not replaced.

Have a company come out check your roof and find out how much your insurance company will cover; in my case I would have been out of my mind not to have it replaced for $500.

Realtor Here
 

You will have a tough time selling a house with a 15yr old roof. What I have done with clients in the past is state in thr MLS listing that the roof will be replaced with a signed contract. Then I have the roofer agree to replace the roof and get paid net 30 so it comes out at closing. This way nothing comes out of your pocket and the new owners are thrilled with an insurable roof.
Since most people make a nice profit off their homes in TV, the extra for the roof seems nominal.
Happy to help you if you aren’t already working with an agent and your house is south of 466.

No, it is maintanance.

Comparing it to countertops is apples and oranges. A 15 year old roof is and issue when selling. If we hadn't put one on, more than likely the buyer would have required it. Plus, some people won't consider looking at a home with an older roof. We felt it was the best way to get it sold. I was just saying our realtor agreed and she's very good btw. We bought and sold that home, and bought this one thru her.

You cannot recoup the cost of roof replacement. Not replacing will be a deterrent to your house selling competitively.

My opinion buyers want older homws with new or newer foofs and AC systems relativly new ,otherwisw the market for your home is seriously downgraded, as far as recovering the costs doublful just makes you home a better candidate for consideration for purchase when those are done.

Yes, on 15 y.o. roof replacement
 

I put my house in Clermont FL up for sale a few years ago. For a small amount more I upgraded to "Architectual Shingles" and what a difference in appearance. Yes, I think it helped to sell the house faster as it had better "curb appeal" the new people could move right in w one less worry.

How much did the steering wheel cost on your used car? Why do people prefer new cars over old cars? Less worry about unforeseen maintenance issues. Same with houses.

A new roof vs and old roof will get different buyers, ones that are more price sensitive than others.
People may overlook the roof if the house has all the other desirables on their list of requirements.

So the answer always is, "every house and buyer is a unique situation"

Other ways to look at the sale:
what's the recent sales and prices look like for as close to a comparable as possible.
That's what a good real estate agent will use. .
Also, you can pretend to be a buyer and go look at selling costs of comparables to get a feel as a buyer
prices and conditions of comparables. Also you are competing against the current inventory for sale at the time you list the house,
which you have no control over, so get an idea of what's for sale right before you sell

Or a new roof vs an older roof won't get the purchaser a reason to want to discount your price.
A new roof probably will sell faster as it appeals to more people for something les to worry about.

Upgrades may not recover the particular cost from within the bundle of land, location, and house particulars from the buyer.
But the new roof gives one less point to dissuade a buyer, or one less point to negotiate from the for sale price, and maybe a quick sale as none of the other houses for sale at the time of your sale, will have a new roof.

These are all externality conditions in your sale environment, none of which you can control other than the price.

Good luck

We have done upgrades / replacements knowing that the house should sell quickly for a competitive price, which is our desires, time to close, versus absolute top dollar cost accounting, which can be calculated, but not the value which is dependent upon each unique buyer.