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Author Topic: Will a New Roof help Resale Value of Flip?  (Read 4071 times)

Offline bottomfeeder

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Will a New Roof help Resale Value of Flip?
« on: April 28, 2008, 08:49:13 am »
The roof is ten years old, doesn't leak, and looks OK. Curb appeal is OK, but on close inspection, roof isn't the greatest. We paid $101k to short from bank, borrowed $120k hard money, and have put another $20k into it for a total of $140k, rehab is almost done. Comps suggest it should retail for $200-210k. It is worth the extra $6-8000 to put a nice new roof on, or should we leave well enough alone. Maybe we'd be asked to pay for a new roof anyway by a picky buyer?

Offline phlemboy

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Re: Will a New Roof help Resale Value of Flip?
« Reply #1 on: April 28, 2008, 10:14:58 am »
 I think the answer lies in the condition of the comps. If the comps in the neighborhood have better roofs than yours, replace it. If they are the same, you should still replace it because you're looking for a quick sale. If your roof is much better than the comps, you may be able to get away with leaving it alone. If you have the money in the budget, replace it. So, I guess I'm taking the long way around saying to replace it  :biggrin
"Fat drunk and stupid is no way to go through life son." --Dean Wermer

Offline tatertot

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Re: Will a New Roof help Resale Value of Flip?
« Reply #2 on: April 28, 2008, 03:04:55 pm »
Most buyers don't know much about roofs. They can't tell a good roof from a bad one, or a worn out one from a new one. Their inspector will pass it if it doesn't leak and the shingles aren't damaged or worn out.

I don't replace roofs unless they look worn out, were badly installed, or they are a really horrible color.

Put the money in the budget and if you get an offer that says they want the roof replaced, you've got it in the bank to pay for the new roof.

I don't think you get a penny more for a new roof. The only reason to replace a roof is if the roof is bad enough to stop buyers from buying beacause the way it looks scares them.

Offline kdhastedt

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Re: Will a New Roof help Resale Value of Flip?
« Reply #3 on: April 28, 2008, 03:25:43 pm »

<<Most buyers don't know much about roofs. They can't tell a good roof from a bad one, or a worn out one from a new one. Their inspector will pass it if it doesn't leak and the shingles aren't damaged or worn out.>>

I would concur that most buyers don't know squat about building structures but there is, in fact, a good possibility that, when the buyers do their inspection, it will reveal a "marginal" roof.  A "good" roof (like a 25 or 30 year roof) is probably fne at the 10 year point but in severe weather areas 10 years may really take its toll on a roof.

Personally, I would also wait and let an inspection reveal the need for replacement.

Keith
I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline fliprent

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Re: Will a New Roof help Resale Value of Flip?
« Reply #4 on: April 29, 2008, 05:18:58 pm »
One advantage to a new roof is a warranty that will pass on to the next owner.  If you need to rent it is insurance for you as well.
Real Estate Investor / Flipper
http://www.fliprent.com

Offline brockovich

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Re: Will a New Roof help Resale Value of Flip?
« Reply #5 on: May 01, 2008, 08:09:01 pm »
Unless you need to replace it(leaks etc...), don't.

Offline Roger J

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Re: Will a New Roof help Resale Value of Flip?
« Reply #6 on: May 05, 2008, 12:20:40 pm »
You need to know your market (or find a good agent/investor that does).

Here, a new roof will help sale the house faster.  No, it does not add value to the property (dollarwise).  However, a faster sale results in less holding, which increases your profit.  Also, new roofs generally produce LESS price negotiating, too.  Another money-gainer.

All that said, it really depends on the true effective age of the roof AND what an inspector will potentially say about the roof.  Example, have property under contract with a 10 year old roof, no leaks, no problems.  Inspector gives it a "so-so" report because it "Looks bad."  Guess who is paying for a new roof?

Definitely include it in the budget whether you do it upfront or not.

Raj
www.HickoryNCHomes.com Search for all Hickory NC Homes for Sale.

Offline picktown

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Re: Will a New Roof help Resale Value of Flip?
« Reply #7 on: May 08, 2008, 09:42:48 am »
A savvy buyer will almost always ask for a new roof if it's questionable.  But as long as it's not leaking I think you're better off using that as part of your negotiation process. 

Of course if it looks so bad it hurts your curb appeal then that's a different story.

 




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