With the warm weather, we've been busy helping homeowners here in the Twin Cities with exterior home remodeling. We find that when most homeowners we talk with contemplate a home improvement or repair project, they are usually focused on the bottom line - "How much is this going to cost me?" While yes, any type of work on your home is going to come at a price, but it's important to also think about it as an investment. Though there are a few things you can do that might actually devalue your home, for the most part, improvements will add to its value. How much you can recoup in increased value of your home compared to how much you spend to get the work done is referred to as return on investment, or ROI. In this post we're going to talk specifically about replacing your roof. Almost every homeowner (unless you're one of the lucky ones who has a long-life steel or other metal roof already on your home) will face a roof replacement at some point. Depending on the age and condition of your existing roof, the cost might be attributable to regular required maintenance, or it could add to the value of your home. If your roof is nearing the end of its useful life, replacement isn't an option, and that bad roof could actually detract from its value. Will the new roof increase your home's value? That depends on the type of roof you choose. Some roofs deliver more return on investment (ROI) than others do. We can tell you right now that due to the increasing popularity of residential roofing among builders, architects, and home designers, one of the best things you can do for your home is to replace your existing asphalt roof with a metal roof. For our climate they are particularly ideal, since snow and ice easily shed off metal roofs. When the time comes to sell your home, it may make it much more appealing to prospective buyers. And in the meantime, you've reaped many of the financial and other benefits of a metal roof, including energy efficiency and virtually no maintenance. As far as increased home value with a new roof, here are some things you should know:
- Value added to a home due to a new roof varies with location; it's highest on the New England area of the U.S. In our region, you can expect about a 65% return on investment.
- Based on immediate installation cost, you can generally expect a new asphalt shingle roof to deliver a higher return on investment than a metal roof. But over time, that will change, because that asphalt roof will need to be replaced again, probably once or twice, before a metal roof would.
- Market conditions matter; check with a local Minneapolis area real estate agent for current information (value can vary immensely depending on whether it's a buyer's or seller's market)
- Your neighborhood also is important. The general rule for home improvements is not to go way above the average in your area, because home values tend to reflect similar homes in a local area. On the other hand, if you're the last home on the cul-de-sac to catch on to the metal roofing trend, replacing your old shingle roof with as metal one may be a very wise investment.