Selling house this year-add new roof now or not?

Question

I plan to move in the next year, my current house needs a new roof which I have already budgeted for and plan to have done this month for about $5,000. Is it in my best interest now to spend the $5,000 on a new roof to add to the value of the house, or put it on the market without a new roof, knowing it will decrease the selling price?

Answer 1

If you need a roof it because there is something wrong with your current roof (a leak, etc.). If there is something wrong with it, fix it.

Do not count on being able to add the cost of the new roof onto the asking price. It doesn't work that way. New roofs don't add value.

The new roof will give your house the appearance of being well maintained and will help with the psychology of a potential buyer. If I was buying a house that needed (really needed, not just cosmetics) a new roof I would assume they maintenance was horrible on the house and would low-ball expecting to have to do a lot of repairs.

good luck!

Answer 2

Spend the money and get the roof. In this market you need some nice perks other than a pretty house. Also, as a buyer, when I see a home with a newer or almost new roof, rather than one that has a bad roof that has to be negotiated about, I tend to think that the home must be overall well maintained.

When I come across a bad roof that the sellers are being hush about (its going to fail inspection anyway and will need replacing to be insurable and thus, sellable) I start to wonder what other items in the house are neglected and "prettied up" to deflect my attention.

One way or another, you will most likely have to get the roof, so why not look good and enjoy the benefits of a new roof now?

Answer 3

A needed new roof won't increase the value of your house. A new roof is considered a maintenance item. A house on the market is expected to have a good condition roof, so you are correct in the notion that you will take a lesser price at sale time, given that the new owner will have to replace the roof.

I'd do it before sale, were I you. You get to control the costs of the repair rather than give an allowance to a potential buyer.

Answer 4

So many times we go over budget in remodelling because during the work, we decide that there are a few more projects we may want to tackle. If so, here is one option which you may not have previously considered: Getting a construction loan.
I understand that the amount you're currently considering doesn't warrant the minimum for a construction to permanent loan, so you may want to consider what else is there around the house that you may want to improve and to help improve the sales price. Reason being is that if the improvements are at (say) $50k, your improvements will carry over much more to the overall value.
Another benefit, is that since CTP loans are calculated with interest & contingency reserves in place - you will NOT have to make a payment until the construction period is complete, and the construction loan is rolled over to a permanent loan - hence, you save on making mortgage payments.
In addition, if you selected a 12 month construction period and the contractor finished in 9 months, then the extra 3 months worth of interest reserves is credited back to you - that translates to pretty much a cashout refinance.
Obviously these are all scenarios that you must decide if it suits you, but before you're in way deeper than you expected, consider the above - and good luck!!

Answer 5

Check your local building codes first. Any roofing contractor SHOULD be familiar with them and know if that's allowed. Most areas will allow 2 layers, no more than that. Some people might see it as a negative but more people will see the new roof as a plus.

Answer 6

you answered yuor own question.