Should I Replace The Roof Before Selling My House?

Homeowners who are considering selling their homes may be faced with a few decisions to make before they try listing. While there are certain times when the market is hot and buyers are willing to purchase buildings in any condition, this isn’t always the case, especially in some areas. So what do you do if you know that your home needs a new roof before you list? Selling as is may get you out of the immediate cost of the replacement, but it could make the home harder to sell or it may mean you have to sell for less. At other times, however, selling as is could be the smarter move, allowing you to still sell quickly, but without the upfront costs. Which is it in your case? You’ll need to make careful consideration of several different factors to find out.

Condition of the Roof

If your roof isn’t leaking or in disrepair, but you know that it’s getting up there in age, you may want to have it inspected prior to putting it on the market. Just because you aren’t seeing leaks indoors yet doesn’t mean there isn’t damage that could kill your deal.

A buyer may be willing to take a chance on an older roof with no obvious damage, but if your roofer finds areas of damage, you may need to consider further.

Localized Repair

Sometimes you do have a leak, but the condition of the roof as a whole is actually pretty good. In this case, spending the money to fix the damage can make the difference between selling the home quickly or not at all. Buyers who see damage or signs of leaks don’t necessarily want to believe that this is localized to a small area, and they may want you to fix the entire roof before buying.

Patching up damaged areas before listing can help avoid these complications.

Cost vs. Value

Another consideration to make is whether or not you’ll get the money back at the time of resale. According to Remodeling Magazine, roof replacements only recoup about 54% of their cost at time of sale. On the other hand, if you decide to sell as is, your buyer may insist on lowering the value of the home to cover the cost of the new roof, in which case you would come out worse than if you had replaced the roof and recouped at least half the cost.

Timing

The number one reason why most people end up replacing their roofs before selling their homes is due to timing. A home with a new roof is going to sell more quickly and more easily than a home where the roof needs some work. Some home buyers aren’t going to want to hassle or the expense of putting on a new roof themselves, particularly if it will need to be done within a short time of purchasing the home. Other home buyers may insist on additional inspections and haggling over the price to account for the needed roof repairs. Either way, if you need to sell your home quickly, you may find that replacing your roof ahead of time can definitely help speed up the process.

Issues with Loans
Another concern that may arise when attempting to sell your home with a roof in as is condition is any conditions that the bank may put on the loan. Some banks may refuse to finance the transaction until the roof replacement has been made. In this case, in order to close the sale, you will need to replace the roof right away. This may occur even after discounts have been made in regards to the condition of the roof; just because the buyers don’t necessarily mind, doesn’t mean that the bank won’t.

Some very motivated buyers may attempt to meet you halfway with the cost of the roof, but many will simply stipulate the terms of their loan and expect you to do the rest. Because this has to happen in a more timely way, you may have less time to get the money together for the replacement or repairs, making the replacement more stressful later on.

Neighborhood Condition

The one exception to the rule may come if your home is in an area with numerous homes in similar condition. In other words, if there are several homes for sale in your neighborhood, and most of them have roofs in similar conditions, then you may be more likely to complete an as is sale in your favor regardless of timing. This is because prospective buyers may be forced to look into the roof replacement themselves regardless of what home they buy. This gives them less leverage when it comes to dealing with you. On the other hand, if the homes in your neighborhood feature new, architectural roof shingles, then an older roof could be a liability and you will need to update to help your home sell.

Make the Right Call

In most situations, it does pay off to replace the roof before listing your home. Your home will sell more quickly with an upgraded and modern home exterior, and you’re more likely to recoup most of the costs this way, rather than gambling that the home will sell as is. Make the right call for your roof to facilitate a speedy sale of your home.