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Does the condition of your roof affect your property value? You bet it does! Real estate (both commercial and residential) appraisals are based on all kinds of factors. For roofing, the appraiser will look at the age and maintenance of the roof, the roofing materials used, the standards in the neighborhood, and any upgrades or improvements that will help with energy efficiency.
New versus old
The value of a new roof on your property can vary widely based on a number of factors. In general, a new roof can add between 15 and 40 percent to the value of your home. This means that a $100,000 home can become a $140,000 property simply with the addition of a new, modern roof. It also indicates that the more a home is worth, the more value it stands to gain from a new roof.
The same is true of business and industrial complexes with a much higher dollar amount attached to the value of the commercial or industrial property and therefore to the roof.
An old roof can negatively influence an appraisal, while a new roof generally signifies that the property owner cares about maintenance and upkeep. A tidy new roof often tells potential buyers that the overall property has been well cared for. Moreover, it’s nice for a buyer not to have to worry about roof replacement any time in the near future.
Keeping up with the Joneses
A standard in real estate is to keep up with the improvements and upgrades in your neighborhood, but not to exceed them. If your home or business is the only one in the neighborhood with a copper roof, while all others have asphalt shingles, you will never regain the expense of the roof in resale value. The reverse is also true, if you’ve chosen a roofing material that is substandard to the neighborhood, your property value is likely to decrease.
Yet another factor is the general maintenance and upkeep in the neighborhood. If all the other homes or commercial properties have new or well-maintained roofs, but your roof is poorly maintained and looks bad, it is certainly going to bring down the list price and property value. It will probably also affect the property values of your neighbors’ homes or businesses as well, a situation they won’t appreciate.
These days, particularly on commercial and industrial properties, new roofing products are helping with energy efficiency — products like reflective coatings that help shed heat, better insulations under the roofing material, stronger bonding agents to keep roofs from leaking, even solar panels that help generate free electricity, etc. An older roof doesn’t offer the buyer the same value as a roof that has been improved with the newer materials.