How Much Does A New Roof Affect An Appraisal?

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An old roof can negatively affect your appraisal when it comes time to sell. A home buyer would ask for a discount for the expected roof repairs or installations in such a case. With a new roof, your home value could go up significantly. If you need exact amounts, you might be asking, how much does a new roof affect an appraisal?

A new architectural shingle roof can increase the appraisal value from $10,000 to $15,000, depending on your area’s market conditions and the cost of roof installations. To get value for your money, you should examine the current state of your roof and discuss your options with a reputable real estate agent. A newer home, 5 years old or so, may only need minor repairs. However, an older roof, 20 years old or more, may require a new installation.

While the numbers are enticing, there are different factors you need to know.

I will provide you with a lot of information I gathered from more than a decade of working as a Master Inspector. Let’s examine some of the things you need to consider.

Does A New Roof Add Value to An Appraisal?

A new roof adds value to a home in an appraisal, according to numerous studies. Most houses with newly installed roofs that I inspected throughout my career ended up getting sold for a higher value.

Cost Vs. Value Report, a study by remodeling, found out that a new roof will set back an average American home slightly above $22,600 for a new asphalt shingle roof.

This will increase the value of your home to a tune of $15,500. Other industry studies have even set the amount at $12,000.

In a separate study, the National Association of Remodelling Industry (NARI) found out that you get 109% ROI. You will make a profit with such an increase in value!

Factors You Should Consider Before Installing a New Roof

Most importantly, the new roof needs to have a lucrative return on investment(ROI). You need to consider these three factors to achieve that

●     The condition of your current roof.

●     House market value within your area.

●     The choice of a replacement roof.

The Condition of Your Current Roof

Typically, maintaining your roof is part of regular home maintenance. Roofs are one of the installations that add to the aesthetic appeal of your home. Therefore, a roof is one of the things prospective homeowners will notice when they come to view the house.

Even so, they expect the roof and other installations to be in perfect condition. If you have a new roof installation, you can expect them to make an offer sooner than later. Typically, prospective homeowners wish to be a cushion against extra costs that arise after the purchase.

The appraisers will help you figure out the condition of your roof. Also, they’ll state how much the condition affects the entire value of the home. It does not make sense to install a new roof for a relatively new house.

In the study conducted by NARI, almost all participants had old and worn-out roofs. The risk with this kind of roofs is that they are barely functional. The bottom line is to examine the roof condition, which will help you determine the ideal action between repairs and new installations.

House Market Value Within Your Area

You need to consult your real estate agents and appraisers on whether a new roof increases value within your area. Additionally, you need to know what percentage is the increase. There is available data that will help you decide whether a new roof is worth it or not.

The total value increase may differ significantly from area to area. All you have to do is access the data from your real estate agent or local appraiser.

The Roofing Material Used

On average, American homeowners spend $7,500 for new shingle roof installations. However, from the earlier indicated figures, the number could rise if you purchase costlier materials. Remember, even the cost might be higher if your home is in an upscale neighborhood.

If you stick with the national average cost, you might get a higher return than when working with expensive installations. Again, a new roof installation isn’t just costly, but it’s time-consuming too. Spend on shingles that are uniform to your neighbors because the appraisal shall be done concerning their homes.

Does A Bad Roof Affect An Appraisal?

A bad roof does affect an appraisal. One of the reasons it affects the appraisal is that your house value goes down. If the bad roof is compounded by, let’s say, a plumbing issue, the price can significantly change for the worse.

The Appraiser’s job is to determine the actual value compared to 3 or so homes within the same area. Of course, they will consider the overall wear and tear of a home. In the market analysis, they’ll compare market values for several homes with similar designs or builds.

Through their analysis, they can estimate a home’s age. One identifiable factor is the roofing condition. Typically, the roofing material with extensive damage will affect the final figure negatively. Keep in mind that prospective home buyers are looking for value for their money.

The repair costs agreed upon during negotiation may go higher than anticipated, as most construction projects do. This discourages them from committing to such an offer that may hurt their pockets further.

Alternatively, they may ask for a higher discount to cushion themselves against the anticipated roof repairs. This is not favorable for your final asking price. A home appraisal is done differently from home inspections.

The noticeable wear and tear are equated to the financial worth of the repairs. For instance, a new shingle roof, at a lower cost, goes for $7,500, which might be deducted from your overall pricing.

Do Appraisers Look At Roofs?

Appraisers do look at roofs. Generally, they will factor in the state of the home exterior, which includes the roofing. A worn-out roof is prone to leakages and infestations. Appraisers search for the quality of the roofing material.

If you know that you have an old or worn-out roof, notify your real estate agent or appraiser. Don’t initiate the roofing installation before the appraisal is done. You might realize that the roofing can do with minor repairs and still fetch a lucrative price.

The assessment done by the appraisers gives the total cost of the required maintenance or installations around your house.

Besides the roof, other exterior parts need consideration, such as the garage, deck, porch, and other exterior installations.

Is It Worth Replacing the Roof Before Selling the House?

To determine if your roof needs a replacement before selling, you must first consider the following factors:

●     Market value

●     The condition of the rest of the house

●     Extent of damage

Market Value

The market value is comparable to your neighboring homes. What kind of roofs are in the other homes? Do they make the home sellable? Even the appraisers will examine your neighbor’s houses as they do the appraisal.

Another external factor that influences the prices is the demand and supply. When houses are in high demand in your area, you could fetch a high price even with a worn-out roof. And then, the new owners may be comfortable with doing the roof repairs and installations themselves.

Similarly, when the market is slow. The old roof might discourage the buyers from making the sale in such conditions. Roofing costs implications mean that prospective home buyers will frown upon the idea altogether.

In such a  case, you may decide not to replace the roof. Instead, lower the cost of the entire house.

Extent of Damage

If the wear and tear are extensive, you have no choice but to replace the entire roof. An old home might have a beaten-up roof even with regular maintenance.

A worn-out roof would discourage buyers from making an offer. Once the roof has outdone its usefulness, then it makes sense to replace it entirely. Moreso, lenders demand the completion of repairs and maintenance before loan approval.

The seller is required to complete the roof installations before the lender approves the loan. The other option is to consult roofers for an extension of your roof’s lifeline. This means doing repairs that will add a few years.—thus, motivating the lender to approve the loan.

The Condition of the Rest of the House

Your home may have other attractive features such as spacious rooms or overall great design and shape. These features mean that your home could potentially fetch a lucrative price, especially if you compare it with other houses within the area.

A new roof installation will increase the value of the house as a complement to the other features. However, if the opposite is true regarding your home, there’s no need to replace the roof.

What Are The Advantages of Installing A New Roof to Your Home?

Besides installing a new roof for the resale value, you get to have an energy-efficient roof. With modern roofing material on sale, homeowners are going for the energy-efficient ones. Even then, the energy-efficient installation shall also benefit the new homeowner.

Asphalt shingles can protect you from temperatures of up to 50 degrees. Consequently, lowered temperatures mean air conditioning is more efficient. In addition, there are attractive tax deals available if you install eco-friendly roofs.

A new roof changes the facade of your home for the better. Your home aesthetics are more appealing to the eyes of the buyer or anyone else. Most importantly, a homeowner gets value in the long term.

Asphalt shingles can last for 20 years or more. This means it will take a couple of more years before you or the new owner thinks of replacing the roofing material. Slate roofing material even goes for more than 75 to 200 years of dedicated roof service.

What Materials Do You Use For New Roofing Installation?

Asphalt shingles are the top-rated roofing material for ease of installation, affordability, and durability. New age shingle technology allows this roofing material to extend its lifeline from the earlier 20 years to about 50 years in service warranty.

You can also consider using cedar shake roofing. This material is attractive and can withstand some of the harshest weather conditions. If installed appropriately, this material will offer extended services.

What Makes a House Appraised Low (Aside From Bad Roofs)?

Appraisers do not directly lower your home’s value because of a worn roof. However, if there are noticeable maintenance issues with other house sections, these too cumulatively downgrade your home.

A new roof installation falls under regular maintenance. Once a roof is damaged, the overall repair costs may affect your home’s interior. Regular maintenance does come in handy to avoid increasing the cost of repair or installation.

Two things add to the life of a home, otherwise referred to as the economic life; maintenance and upgrades. For example, an 80-year-old home may get an additional 30 years or more through regular maintenance and relevant upgrades.

Upgrades include a new kitchen, modern bathrooms, and closets. These new installations allow the home to compare favorably with newer homes as far as value is concerned. On the other hand, a 50-year-old home without proper maintenance or upgrades may look like a 65-year-old house.


All factors considered, you may hold on to replacing your entire roof. While it’s good for the resale value, at times, the return on investment (ROI) is not worth it. In most cases, the roofing could do with simple repairs and regular maintenance.

If need be, for instance, in an old home, you may have no choice but to replace the roofing. When you consider the cost implications, which run into tens of thousands, decreasing the asking price is better.

Nevertheless, a new roof affects your appraisal, and it will increase the value of your home. But installing expensive roofing material means the returns could be lower. Overall, your roof is better with more energy-efficient installations.

However, you may also ignore the bad roof to save on the money needed for the repairs and replacements and leave the responsibility to the buyer.


Hubert Miles | Licensed Home Inspector, CMI, CPI

Hubert Miles is a licensed home inspector (RBI# 2556) with more than two decades of experience in inspection and construction. Since 2008, he has been serving South Carolina through his company, Patriot Home Inspections LLC. As a Certified Master Inspector, Hubert is dedicated to providing his expertise in home inspections, repairs, maintenance, and DIY projects.