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Your Roof Can Increase Your Home’s Value

Using Your Roof as a Sales Tool

12 min
Yellow house in the background with a real estate sign stating SOLD in the foreground

Replacing an old roof may not be top of mind when considering a home improvement project to increase your home’s value. Replacing your home’s roof can increase the appraisal value of the house.

No matter where you live, a house that needs a new roof will be a tough house to sell. Unless you’re interested in a prolonged, headache-filled sales process where your home sits on the market for months, it’s better to replace your roof ahead of the sale.

For Colorado homeowners trying to sell a home, a new roof can be a great selling point and significantly increase the asking price and sales price. An old, worn, or simply dirty looking roof can be a detriment to a potential sale. Unless a buyer wants a fixer-upper, he does not wish to purchase a home that may need major roof repairs or full replacement soon.

A new roof will help your home stand out from others, increase home value, and sell faster in your local real estate market by eliminating any potential buyer’s objections on a home inspection list associated with the roof.

Chapter 1: Why Your Roof Matters

A home’s exterior is the first thing a buyer will see. The roof is a critical element of this first impression. If your roof is in poor shape, you will want to address this before listing.

While the cost of a new roof can be expensive, 3 top considerations can negatively impact your home’s sale price and time on the market.

Fewer offers: Many buyers look for move-in ready homes requiring minimal additional work or maintenance. A home that will immediately need additional expenses is unlikely to appeal to most buyers and will result in less interest.

Longer sale process: Your home may take longer to sell as buyers may want you to make concessions for these immediate needs. Negotiating these may take time, impacting your close date. For example, a buyer may request the seller make roof repairs or full replacement before closing. When selling a home, a roof is frequently a top item mentioned in a home inspection report.

Reduced offer price: Buyers may not be willing to pay as much for your home in its current state if they anticipate the cost of replacing the roof later.

Chapter 2: 6 Critical Signs You May Need to Repair or Replace Your Roof

There are six critical warning signs on a roof that are red flags for home inspectors and can impact your home’s curb appeal, including:

  1. Missing, cracked, or lifted shingles resulting from wind or hail damage
  2. Large hail impact marks that look like indentations or dimples that bruise the shingle
  3. Buckling shingles that do not lie flat on the roof
  4. Warped or sagging roof, which could signal a more significant problem underneath the roof, such as rotten decking
  5. Substantial asphalt roofing granules in the gutters or the ground near the downspouts
  6. Interior leaks or stains on a ceiling or wall

Chapter 3: Be Proactive and Replace Your Roof

Most buyers will not climb on the roof to inspect it. Individuals selling a home would be wise to ensure there are no loose shingles or tiles, or debris on the roof that can impact its integrity or life expectancy. A serious buyer will likely request a roof inspection with a home inspector or appraiser before committing to a purchase. Proactive homeowners may have a better chance of selling their homes for top dollar by knowing the roof is in good condition and looks as good as possible.

Suppose you suspect you have damage to your roof caused by a recent hailstorm or windstorm. In that case, it’s best to contact a reputable roofing company or your insurance company to have your roof professionally inspected. In many cases, your insurance company will provide a recommendation for a reputable roofing contractor in your area to complete an inspection before filing a claim. They are doing you a favor, so you avoid filing a claim, and it gets denied due to old damage (damage that occurred outside the filing window) or insufficient damage. This filed claim stays with you for several years and can affect your future insurance premium.

When selling a home, only the homeowner can file an insurance claim – and you must have owned the house at the most recent date of loss. That means the buyer cannot file a claim for damage that occurred before he owned the home.

Keep Track of Roof Inspection or Roof Replacement Dates and Documentation

We recommend providing any documentation from a recent roof inspection, roof repair, or roof replacement, as these are important to future home buyers.

If you have a Class 4 shingle roof, you will need to provide this Class 4 certification to the new buyer so that they can receive a discount on the homeowners insurance policy.

Chapter 4: Your New Roof is a Major Selling Point

Gray, split-level home in Littleton, Colorado with blue Metro City Roofing sign in the foreground

No buyer wants a roof with known issues or one that will need to be replaced soon. By contrast, a new roof adds value to your home by giving the buyer years of peace of mind and security. A quality new roof, especially one with Class 4 shingles, will likely be one of the top-selling points used by your realtor when describing your home.

There are several home improvements where a homeowner can overspend above other homes in a neighborhood. Good examples of this include a kitchen or bathroom remodel. However, a new roof won’t fit into this equation unless the homeowner upgrades to a premium material from a lower-cost one. A roof replacement sees a high return on investment. According to Remodeling, the ROI on an asphalt shingle roof replacement is 65.9% nationally.

A House with a New Roof Sells Faster with Increased Curb Appeal

There are few homes whose roofs are not visible from the street. In fact, the roof ranks among the most visible components of a home’s exterior. Cracked, curled, or missing shingles aren’t doing you any favors.

Painting the home’s exterior and changing the color is standard. Homeowners do not typically change the roof color when they paint. A house with a new roof color that works well with the exterior will improve your home’s appearance.

Painting your siding, trim, shutters, front door, gutters, and downspouts with colors that compliment your roof color can make a big difference. If you do replace your roof, you have an excellent opportunity to coordinate all your colors to maximize your home’s curb appeal.

Curb appeal matters because first impressions matter.

A New Roof Helps to Justify Your Asking Price

A home inspection report that lists roofing problems can impact your ability to sell your home for top dollar and may even cause buyers to look elsewhere.

A prospective buyer can often overlook paint color, overgrown landscaping, or dirty carpet, but a roof that needs to be replaced can be the issue (and future expense) that kills the deal.

All reputable home inspectors will complete a thorough examination of the roof. So even if you do not report it, any roof issue will surface. When the prospective buyer reads the inspection report, he will either back out of the sale or require financial concessions.

The realtor will request one of two conditions:

  1. Reduce the home’s sale price to compensate the buyer for the cost of replacing the roof, or
  2. Replace the roof before the sale is final.

In other words, there’s almost no way you’ll come out of this process without paying for the roof. We recommend replacing the roof ahead of the listing. In addition to avoiding a tense standoff with a buyer, you’ll also get more value for your home.

Higher Resale Value

While many prospective buyers will avoid a home that will soon need a new roof, a new roof can be a valuable sales tool as a seller. A new roof often adds a considerable amount to the resale value of your home.

If you believe your roof may impact your home’s sale, we recommend having it inspected before listing. A licensed professional will look at the roof’s age and condition and any damage from hail or wind, such as missing shingles. You should replace the roof before listing the house if the inspection report cites damage and recommends a roof replacement.

After new roofing is installed, you and your real estate agent might decide not to change your home’s listing price. While sellers will always want to maximize the sale price, whether one can add this expense to the sale price will depend on your home in your neighborhood. For example, buyers in upscale areas will expect the house to be in near-perfect condition.

Your realtor’s marketing materials should show off your new roof as an asset. A buyer will love that they don’t have to move in and then spend several thousand dollars more on a new roof. A good agent will make sure potential buyers know about this new roof and the conveniences that come with it.

Chapter 5: Other Benefits to Roof Replacement

Other than increasing your home’s salability and increasing home value, homeowners can gain numerous other benefits from replacing their roof, including possible homeowners insurance premium discounts, long-term warranties, and increased energy-efficiency.

Earn Discounts to your Homeowners Insurance Policy

When you have roof damage and need a roof replacement, some products offer better protection, such as impact resistant shingles.

Impact-resistant shingles (also referred to as Class 4 shingles) are roofing products specially designed to withstand extreme winds, snow, and hail damage. These impact-resistant shingles earn an impact resistance rating by Underwriter Laboratories (UL), specifically the UL 2218 classification, which is the highest impact resistance rating.

The result is that homeowner roofs with Class 4 shingles are nearly impervious to most wind and hail-related damage.

Are you looking for the best Denver roofing company?

Metro City Roofing is the #1 roofing contractor recommended by local insurance agents across the Denver metro area.

Request free roof inspection

At Metro City Roofing, we install Class 4 impact resistant shingles and are an Owens Corning Preferred Contractor. These premium asphalt shingles save homeowners an average of 28% on their homeowner’s insurance policy, representing $863 average savings).

Learn more about Impact Resistant shingles

Benefit from Long-Term Warranties

When buying a home with a newer roof, it is essential to ask the seller to transfer the roof’s warranty. Without the warranty paperwork, new buyers will be responsible for any future repairs needed.

Most roofing companies offer transferable warranties. It may be as simple as calling to ask or paying a nominal charge. The transfer of warranty is typically listed on the invoice paperwork.

If you are selling your home and have a newer roof, you should offer this transfer to your buyer. It’s not expected but can add years of warranty and buyer confidence. It could be what clinches the deal.

Depending on the roof’s age, the manufacturer’s warranty may have already expired. Most asphalt shingles have a warranty ranging between 20 to 30 years. More premium roofing materials, like the Class 4 shingles, include warranties up to 50 years.

Increased Energy-Efficiency

Older homes and older roofs often have insulation issues, which increase your energy costs. Insufficient insulation allows heat to escape from your house in the winter or cool air to escape in the summer. A properly installed new roof will provide a strong seal against the elements and lower your heating costs.

Energy used in homes and buildings is the number-one source of greenhouse gas emissions – and in an under-insulated home, most of a home’s heat escapes through the attic and crawl space.

Adding attic insulation and crawl space insulation is one of the easiest and most cost-effective ways to make your home more energy-efficient and improve your utility bills’ energy savings. Plus, it helps to reduce greenhouse gas emissions.

Learn more about Insulation

Chapter 6: Calculating the ROI of a New Roof

A new roof can increase a home’s value, but you are unlikely to see a 100% return on investment. Very few home improvements, if any, will offer a full recoup of money spent.

Even if you don’t see a substantial financial return when selling your home, a new roof can increase the probability of receiving your full asking price. You can also sell your house in a shorter time and with smoother negotiations.

So just how much of a return on your investment can you expect to see on a roof replacement? The following is average costs for the most common roof replacement type, asphalt shingles, according to Remodeling magazine’s 2020 Cost vs. Value Report. Asphalt shingles are the most common roofing material. In fact, 80% of homes in the US have an asphalt roof.

Roof replacement cost (national average): $24,700
Resale value: 16,287
ROI: 65.9%

In addition to the financial value a new roof adds, new architectural roofing shingles can showcase your home better and help stand out prominently when a prospective buyer visits your home. While a roof alone may not sell your house, it will be one of the first things a buyer sees and helps form the first impression.

Getting Insurance to Pay for Your New Roof

If a hailstorm, windstorm recently impacted your home, and you suspect you might have roof damage, you may be able to file an insurance claim and get your roof replacement fully covered. If approved, your new roof will cost you only your insurance deductible.

Before filing a claim, pay close attention to your policy’s limitations regarding roof replacements. There are numerous things to consider when choosing your policy. We recommend you take your time and choose a policy that will save you lots of stress and anxiety. For more information, check out Money.com’s best home insurance companies.

You pay your insurance deductible – that’s it. No surprises. Working with Metro City Roofing is hassle-free.


Chapter 7: Alternatives to Full Roof Replacements

If you need to replace shingles on only part of the roof, you’ll want to match your existing roof material. If you are replacing the roof completely, you have more options in types of materials, such as a metal roof, slate roof, concrete tile or clay tile roof, and more.

Insurance companies will not pay to upgrade your existing roof; they will only pay for exactly what you currently have. If you’re selling your home, you will need to decide whether the return on investment will be worth it to upgrade the roof.

Roof Certifications

We provide a 5-year roof warranty or certification to real estate agents when we believe the roof’s condition is good and lifespan will be another 5+ years. These certifications are common requests by realtors (especially those who represent the seller) who desire the home sale transaction to go smoothly, avoiding home inspection objections, significant repairs, and delays, especially in a competitive market.

Why Choose Metro City Roofing?

Metro City Roofing is a Colorado roofing company, headquartered in Denver, CO. We specialize in hassle-free professional roofing and will treat your home like our own.

Metro City Roofing is a roofing and building contractor that has worked diligently to earn essential credentials, certifications, licenses with national and local governments and local building departments, and a roofer you can trust.

We deliver the best professional roofing services across Denver metro area. We are proud of the excellent reputation we’ve earned, with outstanding customer satisfaction, one roof, and one customer at a time.

Why Choose Metro City Roofing?

Metro City Roofing is a Colorado roofing company, headquartered in Denver, CO. We specialize in hassle-free professional roofing and will treat your home like our own.

We deliver the best professional roofing services across the Denver metro area. We are proud of the excellent reputation we've earned, with outstanding customer satisfaction, one roof, and one customer at a time.

Jonathan Abramson

Jonathan Abramson

Colorado Roofing Expert, Founder of Metro City Roofing

Jonathan loves the roofing industry as his company helps individual customers to navigate the insurance claim process and get them the new roof they need after a hailstorm. He has earned numerous roofing certifications and licenses, including the distinguished All Lines Adjuster License.

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