When you’re getting ready to sell your home, deciding which repairs to tackle before listing is crucial. Among the most significant — and costly — are the roof and the HVAC system. Replacing these before putting your home on the market can have substantial benefits, but is it always necessary? Let’s break down the factors to consider when deciding whether to replace your roof before selling.
HOW DO YOU KNOW IF YOUR ROOF NEEDS TO BE REPLACED?
In Arizona, tile roofs are most popular, but it’s not the tiles themselves that fail, but the underlayment beneath them. While tiles can last 50 years or more, the underlayment typically has a life expectancy of 15 to 20 years.
You can’t just look at a tile roof and determine if it’s nearing the end of its life. The condition of the underlayment can vary significantly from house to house, depending on factors like the quality of the material used and how well it was installed.
WHAT TO LOOK FOR WHEN CHOOSING A ROOFING COMPANY
- Use a Licensed and Insured Contractor: This might seem obvious, but it’s worth emphasizing. A licensed contractor is more likely to adhere to industry standards, and insurance protects you in case anything goes wrong.
- Get Multiple Bids: Roofing companies can vary widely in both cost and quality. I recommend having at least two or three companies come out to give you bids. This allows you to compare not just prices but also the level of detail and professionalism each company offers.
UNDERSTANDING ROOF WARRANTIES
Roof warranties can differ significantly between companies, and understanding these differences is essential.
Generally, warranties fall into two categories:
- Workmanship/Labor Warranty: This typically ranges from 2 to 10 years, depending on the company. It covers any issues arising from the installation process.
- Materials Warranty: This can vary from 5 to 15 years and even up to 30 years for the top-tier underlayment. This warranty covers defects in the roofing materials themselves.
One of the most important things to check is whether the warranty is transferable to the new owner if you sell your home.
DIFFERENT TYPES OF UNDERLAYMENT
After 15 years in real estate, I was surprised to learn about the different types of underlayment just a few years ago. Roofing companies automatically base their estimates on the cheapest underlayment to keep costs down, and you might not even know you have a choice.
There are three main types of underlayment:
- Single Layer Asphalt: Offers a 15-year warranty.
- GatorSeal Underlayment: Comes with a 20-year warranty.
- Westlake Tile Seal Underlayment: Provides a 30-year warranty.
The price difference between these underlayments is only about 3 to 8 percent, but the warranty on the top underlayment is double that of the cheapest option.
WHAT ABOUT REPAIRS?
If replacing the entire roof isn’t needed or is not in your budget, repairs might be a viable option. While a roofer will warrant their repairs, some roofing companies go a step further. They’ll perform a thorough roof inspection, make the necessary repairs, and then warrant the entire roof against leaks for two years.
ROOF INSPECTIONS ARE FREE
Roofing is a competitive industry, and inspections are free, so get several bids and compare them side by side. Ask for a detailed breakdown of everything included in the price — many companies will provide this as part of the estimate.
REPLACING YOUR ROOF BEFORE SELLING PROS:
- Higher Sales Price: A new roof can justify a higher asking price, as it’s a major selling point for potential buyers.
- Faster Sale: Having one of the major expenses already taken care of makes your home more attractive, especially to first-time buyers who might be wary of big-ticket repairs.
- Stand Out From the Competition: If you’re competing with similar homes in your area, a new roof can set your property apart.
- Reduced Negotiations: Roof repairs can often become a sticking point during the inspection period. By taking care of this upfront, you reduce the chances of negotiations stalling or falling through.
CONS:
- Cost: A new roof is expensive, and while it adds value, it’s still a significant upfront cost.
- Return on Investment: You might not recoup the full cost of the roof in the sale price. While it adds value, the ROI may not be 100 percent.
- Disclosure Requirements: If you have a roof inspection and decide not to make repairs, you’re still required to disclose any issues found. This could potentially deter some buyers.
CONSIDER CURRENT MARKET CONDITIONS
Market conditions should also factor into your decision. We’ve recently shifted from a seller’s market to a more balanced market, and in some areas, it’s even become a buyer’s market. In a more balanced or buyer’s market, having a move-in ready home with no major repairs needed can be a significant advantage.
FINAL THOUGHTS
Replacing your roof before selling can be a smart move, but it’s not always necessary. Weighing the pros and cons, considering your budget, and understanding your local market will help you make the best decision for your situation.