What is the ROI on a New Roof?

Unless a tree falls on your roof, it may be unclear whether it's the right time for a roof replacement. But you may be surprised by the return on investment...

Reasons Why a New Roof Makes Financial Sense

One of the main reasons why a new roof offers a good return on investment is its impact on curb appeal. A new roof can drastically improve the overall look of a home, making it more attractive to potential buyers. In fact, studies have shown that a new roof can increase the resale value of a home by up to 70% of the installation cost.

Another financial benefit of a new roof is that it can make it easier to pass inspection. If you're planning to sell your home, a roof in good condition can give buyers peace of mind and potentially speed up the selling process. Additionally, a new roof can command a better sale price, as buyers are willing to pay more for a home with a recently replaced roof.

Material Options for Strong ROI

When it comes to choosing the right roofing material for a strong return on investment, there are several options to consider. Asphalt shingles are the most popular choice due to their affordability and durability. Metal roofing is another option that offers a high return on investment, as it can last up to 50 years and provides excellent energy efficiency.

Other materials to consider include synthetic or composite shingles, wood shingles, and tile, clay, or cement roofing. Each material has its own advantages and disadvantages, so it's important to weigh the cost, longevity, and aesthetics when making a decision.

Do the Math to Determine Your Roof Return on Investment

Calculating the return on investment for a new roof involves considering the initial cost of the roof replacement and the potential increase in home value. It's important to consult with a roofing expert and obtain quotes from different contractors to get an accurate estimate of the installation cost.

Once you have the installation cost, you can estimate the potential increase in home value. This can be done by researching the average increase in home value for your area due to a new roof. Real estate websites and local housing market reports can provide valuable information.

By subtracting the installation cost from the potential increase in home value, you can determine the ROI on a new roof. Keep in mind that the ROI may vary depending on factors such as the condition of the existing roof, the quality of the installation, and the overall real estate market.

Conclusion

A new roof can offer a good return on investment, especially when it comes to improving curb appeal, passing inspection, and commanding a better sale price. Choosing the right roofing material and accurately calculating the ROI can further enhance the financial benefits of a roof replacement.