How Roof Condition Impacts Buyer Interest
When buyers view potential homes, they weigh many factors that determine whether they will make an offer. Although buyers look for things that they like about the home, they also look for turnoffs or potential future headaches. A worn or damaged roof can instantly turn off potential buyers from even making an offer, but it can tank a home’s appraisal or cause issues after the home inspection, both of which can derail the sale during escrow. Before listing their home, sellers need to clarify the roof’s condition with their real estate agent to help them decide whether it’s smarter to repair, replace, or disclose the roof condition and negotiate with the buyers for a credit toward the work.
Signs that Indicate Your Roof Needs Repair or Replacement
An older roof may not have any visible signs that indicate it’s time to replace it. Generally, an older but well-maintained home isn’t necessarily a red flag for home buyers. There are, however, signs that your roof has issues that need to be addressed before you begin showing your home. Some of these include:
- Sagging Areas of the Roof
- Missing or Damaged Shingles
- Missing or Damaged Flashing
- Sagging Gutters
- Significant Areas of Streaking or Algae Growth
The Psychology of Home Buying
Your home isn’t new to you, but it is new to potential buyers. When you list your home, you want to make sure that it shows off its best self. If a potential buyer sees an aging roof or one in poor condition, that first impression will carry over to how they perceive the rest of the house. When they think your roof hasn’t been maintained well, they will subconsciously believe that the rest of the house hasn’t been maintained well, regardless of how well it presents itself.
Navigating Inspection and Appraisal with an Aging Roof
You’ve listed your home, an offer was made, and now you’re in the escrow process. During this period, your home will need to be inspected (to make sure it is structurally sound and disclose anything in need of repair) and appraised (to ensure that the home’s value is in line with the sale price). An inspection flag on the condition or age of the roof will likely not derail the buyer’s ability to obtain a mortgage, and the likely result is that the seller will need to provide a credit toward roof replacement if they haven’t already. However, if the roof’s condition significantly impacts the home’s value during the appraisal, the deal may fall through. The buyer may not be able to obtain financing if the roof’s age or condition negatively affects the home’s value. If an appraiser determines the roof is in poor condition, the lender can deny the loan. In addition, the buyer may find it challenging to obtain homeowner’s insurance, since most insurance companies will not cover a home with a roof older than 20 years. If the buyer can’t find a home insurance plan, their ability to secure funding is also in jeopardy, as most lenders will not approve a mortgage without proof of insurance. Therefore, a roof in poor condition is less about buyers being turned off by an old roof and more about the practicality of the appraisal process.
Do Sellers Have to Repair or Replace an Aging Roof?
So, if the condition of the roof is going to turn off potential buyers, or the buyers may not be able to secure funding due to an old roof, it’s a given that the seller should take care of the roof repairs or replacement before listing the home, right? Maybe, but maybe not. While the roof’s age is a significant factor in determining if the roof needs replacement, a roof that is simply old will not turn off buyers immediately, especially if the roof appears to be well-maintained otherwise. In this case, your real estate agent may advise you only to disclose the age of the roof as well as evidence of maintenance you’ve performed over the years, and provide a credit that the buyer can use for roof replacement. This may be the ideal solution for homeowners who are unable to invest in a roof replacement upfront or need to sell their home on an accelerated timeframe.
However, if you are able, investing in a roof replacement before listing your home will often come back to you at the sale price. Not only will you not need to provide the buyer with a credit at closing and avoid any issues during the inspection and appraisal, but you can market your home as having a new roof and adjust your listing price to reflect that investment. Many buyers will be drawn to a house with a new roof and will be willing to make an offer that reflects that.
If you plan on listing your home, you must give your roof the attention it deserves before putting it on the market. If you keep up with maintenance and have your roof inspected, you can maximize the value of your roof and attract more buyers. Take the time to make sure your roof is in good shape before your list comes back to you in your sale.
Before you list your home, let All-Nu Construction help you make a confident, informed decision about your roof. Whether you need an inspection, repairs, or full replacement, our experienced team is here to protect your investment and boost buyer appeal. Contact us today to schedule a consultation and get your roof market-ready.