Buying a home is one of the largest purchases most people make in their lifetime. Because of the magnitude of this purchase, both the seller and the buyer want to get the best deal possible. Many times this transaction ends in a back and forth negotiation between the two parties over repairs and closing costs.
This process is complicated enough, and it becomes more so if you add a roof that needs repair. Smart buyers expect to pay less if the roof needs significant repairs. However, will repairing your roof benefit you? Some reports show the average return on investment from roof replacement varies from 53% to 61%.
As a seller, you may wonder to what extent you should fix up your home. Unless you build, most homes have some type of damage to them. So, where do you draw the line between repairing your roof and selling as is?
Here are some questions to help you determine whether you should repair your roof or not.
What does your roofing contractor recommend?
Before you decide if you should repair your roof, you should first get it inspected. You should know how your property measures up to the nearby homes on the market and understand the extent of damage to your roof. This assessment will help ensure you advertise a clear picture of your property’s worth and avoid issues with potential buyers.
If the roofing contractor finds minor damages, you don’t need to worry about repairs. However, if your roof has major issues, you may need to ask yourself a few more questions.
How will roof damages affect your home price?
If you own your home, you may not have to worry about making a significant profit from selling it. On the other hand, if your home isn’t paid off, you may need to sell for as much as you can in order to break even. To sell your home for the maximum price, you will need to repair roof damages.
Your home value will increase significantly when you resolve roof repairs. Remember that whatever profit you make from selling your home determines the balance on your outstanding mortgage loan. Therefore, if you don’t have your home paid off consider repairing your roof. Keep in mind, if your home doesn’t sell for a while, you will still have to pay interest rates, which may mean lowering your profit.
Replacing your roof may also attract more buyers and help you leverage your price during the negotiation period. If you don’t repair the roof, your home may stay on the market longer than necessary.
Will the damage effect the buyer’s loan approval?
If the buyer decides to finance the cost through a lender, make sure selling as-is won’t block them from getting approved. Some lenders require that you finish major repairs before they approve loans. In these cases, the cost of repairs normally falls to the seller.
How will you pay for repairs?
If a severe weather storm damaged your roof, your insurance may cover the cost of repairs. You should contact your insurance provider to find what damages your policy covers. You can save quite a bit of money with this financial solution. Ask your roof contractor for guidance and information regarding insurances and cost of repairs.
You may also want to give the buyer the chance to fix the repairs. They may prefer to find their own contractor and have you credit them some of the bill. This option works great for buyers who want to ensure quality work.
If you want to sell a home that needs repair, call a roof contractor you can trust to help you through the process.