Does a New Roof Add Value to Your Home?

If you’re in the market to sell your home or maximize its investment value, a new roof can offer some of the best returns on investment (ROIs). Read more to discover how much a new roof can increase your resale value and save you thousands over the long term. 

“Should I replace my roof before selling?”

It’s a question we often hear from customers that want to spend their precious home improvement budget where it will see the highest payoffs. As a new roof nears the end of its lifespan can decrease your home’s value, but investing in premium roofing materials might give you diminishing returns on your investment. It can be confusing to pinpoint when a roof replacement goes from a lucrative investment to a money dump. Since a new roof cost is more substantial than a fresh coat of paint or a few minor renovations, it’s worth examining carefully before making any big decisions. 

Fortunately, replacement roofs often help home sellers receive more high-quality offers when it’s time to sell. Read our guide to determine will a new roof increase appraisal value and crunch the numbers to see if it’s a valuable way to invest your home improvement budget. 

How much does a new roof cost?

Before we can delve into the returns you can see on your roof replacement, we need to discuss average costs.

The average home size in Ontario is 1520 sqft. The costs of a new asphalt roof on homes that size typically range between $6,000 to $9,000.

While many homeowners choose to invest more or less in their roofs, the average provides a good jumping-off point to start comparing your costs to returns. 

Does a new roof add value for resale?

Adding a new roof to your home can quickly increase resale value, especially if your current roof is causing leaks and other issues requiring costly repairs. 

While many homebuyers want to avoid these costly issues, a new roof also improves “the convenience factor.” While some buyers are okay with and even seek out homes needing repairs, a new roof attracts home buyers who want a turnkey property. Knowing that the roof won’t need replacing for another 10 - 30 years puts their minds at ease because the process requires a load of money, time, and inconvenience. 

How much does a new roof increase home value?

When we’re speaking strictly of home value, a new roof typically increases your home value and delivers a return on your investment between 65-80%. That means for every $100 spent on a new roof, you can expect your home’s value to rise by about $75. 

So you’re not likely to see the money you spend on a new roof return to you by 100%, though the numbers only tell part of the story. As previously mentioned, a new roof makes your home more attractive to buyers. That attraction can lead to more bids, more valuable offers, and bidding wars between home buyers willing to compete and pay more than the paper value to buy your home. 

It’s All About the Location

Your home’s location can seriously affect your returns on a new roof or replacing roof shingles. The norms in the Toronto market, for example, don’t always apply to rural Ontario, Brantford, or Hamilton. 

Ask a local realtor or real estate appraiser for advice when considering a roof replacement. They can share more accurate information based on their extensive experiences in the local real estate market. 

High-Quality vs. Low-Cost Roofing

You should always choose to replace a roof with materials that meet industry safety and durability standards, but roofs of differing qualities can offer different rates of return. 

A high-quality, premium roof will cost you more than the average roof replacement cost, but the rate of return is typically lower than a less expensive roof. According to the American National Association of the Remodeling Industry, homeowners who spend less on roof replacements tend to have the highest rates of return. 

What roof is best for resale?

When considering your roof replacement, it should always align with your home and the surrounding neighbourhood. Putting designer shingles and a luxury roof on a starter home valued at $400,000 feels like overkill, but it may make sense on a home valued at $1.2 million. The more upscale your neighbourhood, the more likely you are to attract buyers who appreciate a premium roof. 

The Value of Savings

Whether you’re ready to list your home or want to simply enhance your home’s value for the future, the payoffs for replacing your roof go well beyond selling at a higher price point. 

When you’re considering investing in a new roof, you need to measure every benefit against its expense to see the full picture. 

Insurance Premium

Does a new roof affect insurance?

Insurers charge home insurance premiums that align with your overall risk level. Since the quality of your roof affects your risk of leaks and other roof-related damage, replacing your roof with new, high-quality materials can have a positive effect on your premiums. 

Aging and low-quality roofs with degraded materials negatively impact your insurance rates, so investing in a roof replacement can often save you hundreds of thousands of dollars in annual insurance premium payments.

Heating/Cooling Costs

Worn-down roofing degrades the seal on your home that helps maintain the right temperature as you heat or cool during the seasons. Those weakened seals and leaks allow air to escape more quickly, causing you to keep expensive HVAC systems running longer and more often than they should. Over time, those expenses add up. 

New roofing technologies are constantly being developed for superior home protection. Investing in a new roof, especially one with heat-reflective and energy-efficient technologies, can save up to 30% on your energy bills.

Conclusion: Why get a new roof?

Is a new roof worth it? It all depends on your costs and potential payoffs. Calculate the immediate gains you’ll receive by saving on heating and insurance expenses, and ask a realtor or industry expert what types of returns most locals see when they sell. 

Often, a new roof may be the perfect solution to help maximize your home’s value. 

Hamilton Roofing Repairs and Replacement

Ready to upgrade your home’s value with a new roof? Our Hamilton roofing contractors are ready to answer your questions and help plan your next steps. Get a free cost estimate - call (905) 544-4667 today.