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Note: When you work with one of our partners, we may earn a small referral fee. Learn more about our editorial policy and how we make money. So you’ve found the perfect house and the price is great–but you’ve come to a fork in the road: an inspection reveals that the house has a bad
roof. Let’s dive into what to do went you come across this problem during your home search. What types are roofs are there and what are the lifespansThe first thing you need to know is that all roofs are not created equal. Depending on the material and the style of roof, they can have drastically different lifespans. The “composite shingle” roof is the lowest quality roof on the market (outside of “rolled” roofs, but if you see one of those just run away). Architectural or 3-D / “3 tab” roofs (all the
same but different names) are a step up from the lowly composite shingle roof. These type of roofs can last up to 30 years and generally have a better aesthetic appearance than the composite roof. The challenges of buying a house with a bad roofA “bad” roof can be many things. It can either be a still functioning, but old roof, or it can be a roof that is already leaking. There are two main challenges with buying a house that has a bad roof. The first challenge is that the roof may already be leaking, and if it is, it’s causing damage “downstream.” If the roof you’re thinking about “inheriting” is already shown to be leaking, that means there is likely damage that neither you nor the
inspector can see before it’s too late. If you plan on getting a mortgage to buy the house, you’ll need to keep in mind that you’ll be required to purchase homeowners insurance to protect the investment. Homeowner’s insurance companies may not cover the house if the roof is too old and is deemed in “poor” condition by an inspector. Here is a rough idea of the what some homeowner’s insurance companies consider the “cutoff” dates for older roofs: Composite Shingle = 15 Years Architectural Shingle = 20-25 years Metal Roof = Over 30 yearsYou’ll want to check with a local insurance agent that can get you quotes from many different providers so you know your options with the roof age. Even a roof in good condition can be old enough to be a problem for some companies–and if you can’t get the insurance then you won’t get the mortgage. What does it cost to replace a roofThe cost to replace the roof varies dramatically based on what type of roof you want to put on, where you live, how you plan on dealing with the old roof, how many layers of shingles are on the old roof, and if any of the components of the roof underneath the shingles needs to be
replaced. If anything underneath the shingles like the roof sheathing, plywood, struts etc. needs to be replaced along with the shingles, you are looking at a significantly more expensive job and may want to reconsider the deal. The cheapest roof on a smaller
house that just needs a shingle replacement could be around $4,000. The largest the house, the higher the cost. The cost also goes up depending on the severity of the slope of the roof (the steeper the slope, the more expensive it will be). Ready to take the next step getting your roof repaired? HomeAdvisor can help by connecting you with local professionals free of charge. Buying Options When the Roof is Bad All is not lost of the house you are buying is found to have a bad roof. There are two rehab loan products that you can apply for that will loan you the funds necessary to make the repair on the roof and roll the cost into the total loan amount. The FHA 203K and the Fannie Mae Homestyle Renovation loan are the two products that are available to help you in this situation. You’ll want to check with a lending professional to make sure you qualify for those products. The FHA loan requires at least a 3.5% down payment, while the Fannie Mae product requires a 5% down payment minimum. Some lenders will also let the seller fund a repair escrow, which is a fund
that is set aside at closing that is used to make repairs on the roof. Why it might be worthwhile to go forward with the dealYou now have massive leverage in the deal. You can use that to your advantage if you have the money to fix the roof and the seller does not. The seller is going to have a brutal time selling the house, as many lenders and home insurance companies won’t touch a house with a bad roof. If you’re coming to the table with cash, or you can afford to fix the repair during the closing / escrow process, you can use your leverage to ask for a huge discount on the house. Let’s say the roof repair is going to set you back $5K. There’s no reason you can’t try to get a 10-15K discount, because the potential buyer pool just shrunk dramatically for the seller and you should get a discount for that and the risk you are taking on buying the house. The bad roof can be an advantage for you to get the house of your dreams for a discount if you 1) have the money and 2) press your advantage. When you should walk away from the bad roof dealIf you’re depending on using a loan product that won’t allow big repair escrows, or has strict standards for the condition of the house (like a VA / FHA loan) then you may want to pass on the deal. It could also be wise to pass on the deal if the seller is being unreasonable about their price or is in denial about the roof. If there is a leak in the roof already, you may want to use that as your red line in the sand and walk. Remember, leaks in roofs mean everything under that roof is now exposed to the elements, and water can devastate a house in no time. Devastation = money. Don’t let the seller’s headaches becomes yours if there is a leak. Conclusion Buying a house with a bad roof isn’t the end of the world, but it can be tricky to figure out. A roof is a critical item for the structural integrity of a house, which means that every stakeholder in the transaction will have a say in what they need to sign off on the deal. Is an old roof a deal breaker?Old roofs are the number one deal breakers when it comes to buying a home and for good reason. Well-maintained roofs can last 30 years or more—but a shoddy installation or poor-quality shingles and tiles can mean needing to replace a roof much sooner.
Is it worth it to put a new roof on a house before selling?A brand new roof can also increase the resale value of your home. You may not see a 100 percent return on your investment, granted, but very few home improvements actually do offer a full recoup on expenses spent when it comes to putting a home up for sale.
How do you negotiate a new roof when selling a house?A common number is to go 50/50 on the price of a new roof, but that is up to your negotiating skills. You will usually replace the roof after closing, which is great because you will have full control. Finally, you will need to get everything in writing, including the amount of credit from the seller.
Does putting a new roof on a house increase its value?One study finds that a new roof is a reasonable investment. Remodeling's 2019 Cost vs. Value Report found that the average American homeowner spends $22,636 on a new asphalt shingle roof of midrange quality. That new roof will increase the home's value by $15,427, on average.
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