Should You Replace You Roof Before Selling The House?
I don’t know about you, but I’m still waiting for the day a homeowner calls me and says: “Hey man this meteor just came out of nowhere, and well now there’s a huge hole in the roof…should I replace it?”
There’s no way I could lie about it…I’d be pretty amazed if that ever happened to me, but my response would be pretty easy and simple. I would say: “So how much money are you prepared to lose by selling it as a tear-down?”. It may not be the easiest thing for people to hear, but at least it’s honest. If your roof has any issues…inspectors and buyers alike will try to find any loophole they can.
The sad part is that the average homeowner doesn’t really know how to rationalize these different situations and could be easier to just ignore it altogether. “Do those old shingles really matter?”, “Oh that moss is barely noticeable”, “20 years? It’s got plenty of life left right?”.
Those are some tough questions, especially since selling your home is a big financial move. If you’re at a loss for what your next move should be, keep reading…we’re going to put your mind at ease.
What's The Big Deal, Anyway?
If your roof has seen better days and currently isn’t in the best shape, it can be pretty irritating to have to cut into potential profit just to get the sell. We totally understand where you’re coming from. But…it’s worth noting that it can and often will be the negotiation point in the sell. If you don’t replace the roof, buyers are likely to knock their offer down or walk away altogether. However, you should also know that homeowners who bit the bullet early for the new roof, often come out on the upside of the deal. We are talking an average ROI of 53%. Yes, throwing down all that money can seem like a hassle, but you’ll make it back and then some in no time!
So, How Do I Decide?
To really decide what your specific situation calls for, you should look at the current market and sales activity around your area. Are buyers being picky? Or are buyers really desperate? Just as it’s important to know the status of most systems in your home like electricity, hvac, and plumbing…it’s important to get an inspection from a local roofer in Colorado Springs before listing it for sale so you know all the potential issues buyers might bring up. If it comes back that there are some issues with the roof, you may need to ask yourself a couple more questions.
What's The Damage?
The first thing you need to do after the inspection determines that there is damage that needs to be resolved is to bring in a local roofing pro to assess the cost of a repair or replacement. When you reach this step, we recommend bringing in at least 3 separate contractors for quotes so that you know aren’t getting price gouged by one company. This will also help in negotiation because you can adjust the price of your home accordingly…possibly even making a small profit margin!
Why Might I Choose To Spend Money On The Repairs?
Perhaps the main reason you would spend money on repairs is that you want your home to sell faster. It is a known fact in the real estate arena that houses that have unresolved issued sit much longer than those with no issues. Another option you have besides replacing your roof is to have a roofing specialist come out and perform a maintenance service. This is helpful when the life of the roof is in question. After the roofing specialist is done he/she will certify the roof for another 3 – 5 years, putting the new buyer at ease!
Why Might I Want To Sell As-Is?
There are a couple reasons why you might sale “as is” however. It could just be that it is an emergency and you have to get out, you don’t have any extra money for prepares and you don’t care what the price you sell for is. It could also be that you don’t have enough time to give these repairs a look for yourself. Hey, we all understand that time is money…and sometimes it might just not be worth it for you. We totally understand! However, there are some other reasons you might want to sell as is that could ultimately work out in your favor…
If you price your home lower and list it as “as-is” you might just start up a bidding war! This is awesome because in most situations, buyers will likely waive the inspection just so that they can hurry up and move to the closing table. What this also does is actually reduce the odds for any negotiations in the future. The way most bidding wars go is a price starts low and quickly grows, all without any of the buyers looking seriously into repairs! This is a great way to potentially not have to spend any money on repairs!
Will Selling As-Is Factor Into Loan Approval? Help!
One last concern that you should be aware of is that the selling of the home “as is” has the chance of getting the loan blocked. Now this is all on a case by case basis, minor maintenance typically isn’t an issue…but if the roof the roof is near the end of its life or has significant damage, the lender may just decide to block the loan altogether which can be extremely disappointing after getting that far in the sales process. Occasionally a buyer might meet in the middle to help you out…but more often times than not it isn’t the case.
The Bottom Line
If your roof is significantly damaged and living off of fumes, it will make it much easier on yourself and everyone else involved to make the repairs.
We are aware that every situation is unique however, and we would love to know what you guys think! Let us know in the comments down below!