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Re-Roof?

Posted by Chadoe3 (My Page) on
Mon, Mar 10, 14 at 10:29

So I'm getting ready to sell my house next year. The house is 1750 sq foot, about 25 yrs old and in pretty good shape. It needs some cosmetic work in and out, repainting and landscaping which I plan to work on in the next year.

The only major update that it needs is a new roof. I had some minor leakage a couple years ago, which I've had corrected, but at that time the roofer told me I would need a new roof within a few years (the roof is about 15yrs old now).

I've been discussing it with my S.O. and we're trying to figure out how best to handle this.
1. Have the roof replaced before putting it up for sale - I'd go with a less expensive roof (but still something decent).
OR
2. Get a written estimate on a new roof and either reduce the asking price of the house by that much, or offer that dollar amount back as a rebate (of sorts) at closing. This way the new owners can pick the roof they want.

What would make the house sell easier I guess is the question. :)


Follow-Up Postings:

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RE: Re-Roof?

Option 1, or Option 3: If the roof works, do nothing. How easily are houses like yours selling?


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RE: Re-Roof?

Actually houses in my neighborhood go pretty quickly. It's an older neighborhood, for the area, mostly smaller starter type houses. But it's in one of the best school districts in Central Florida and is just up the road from a University and a high tech Research Park. It's a nice town, and a very good location for young families.

That one of the reasons why I'm torn about having the roof done myself, or giving a credit/rebate for it. I know people like houses they don't have to do anything to, but I also know a lot of folks would like to pick something (like a roof) for themselves. So torn :)


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RE: Re-Roof?

Agree that if the roof is not leaking, to just list it and see what comes up during price negotiations/inspection. I would not offer a rebate or credit in advance. People won't pass on a house because of an old roof bu twill take it into account in their offer.


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RE: Re-Roof?

Since you're in Florida, will the roof have to be certified for the new owners to get insurance?


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RE: Re-Roof?

I think I'd be inclined to replace it. Here's why. You say that you are in a neighborhood of starter homes. First time buyers have huge cash outlays when they buy their first home - the 20% down payment plus all the other costs to move. I think you may scare some off with the thought of needing to shell out an additional $5K (or whatever) for a new roof. Many may not be comfortable with the thought of that much capital outlay right off the bat. I don't know what you did to fix your leak, but a patch on a roof - as a potential buyer, that spells trouble for me.


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RE: Re-Roof?

I would be inclined to put on a new roof also. Just one less thing the potential buyer could knock off on the asking price and one less worry for you. Buyers(1st timers) will more then likely knock of more monies when they offer, then it will actually take to replace the roof. "New Roof" could also be used in your listing of the house. Just do it, get it done with and move on to the next project. Oh, and we never offered a discount or allowance up front on anything when we have sold our homes. That is to be dickered with when a real offer comes to you. NancyLouise


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RE: Re-Roof?

I think I agree with just getting it done myself in advance. Being able to put "New Roof" on the listing would be an excellent selling point as suggested.

Thanks! Sometimes it just takes other people pointing out the obvious.


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RE: Re-Roof?

Well, below is a link to recouping specific remodeling costs by geographic area.
A new roof is nice, but in my market, it would not make sense to replace, also because 5K would not be enough for a new roof that size.

Here is a link that might be useful: remodeling cost vs value


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RE: Re-Roof?

What Pixie - Lue and Nancyloise say.
I rarely advise to offer an allowance for anything, because they will accept your cash allowance and then deduct even more when negotiating the price. You will get hit twice. Plus, why give up leverage before the negotiations have even started? Use the repair to get something that you would like...
Nosoccermom, you are right. It will not be profitable, but it will be very marketable with a new roof. Especially for the reason Pixie - Lue states.


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RE: Re-Roof?

A lot of first time buyers cannot qualify for conventional financing. They then go for FHA mortgages allowing them to go with less of a down payment. A house needing a roof will not qualify for an FHA loan ( has to be at least three years of life left on the roof). By not having the roof done prior to listing, you not only give up negotiating power, you give up a huge amount of buyers.


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RE: Re-Roof?

I would have the roof evaluated first to make sure it has reached the end of its life time. Fifteen years doesn't seem that old for a roof.


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RE: Re-Roof?

That was an interesting link about the cost of remodeling vs value. I was surprised that, in Florida, the better the roof upgrade, the less you can expect to recoup.

However, the buyers pool for a house like mine will include a lot of first time buyers and the last thing I want to do is put more hurdles in their way. Now to determine the proper balance between cost and quality.


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RE: Re-Roof?

Actually nosoccermom the roof really does need to be replaced. Florida sun, and the 3 .. no 4 ... hurricanes it has lived through have been tough on it. If I was planning to keep the house I would still be having it re-roofed next year.

Hmmm what I need is another hurricane ... not a bad one, just enough to get the insurance to cover part of the replacement!


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RE: Re-Roof?

Hm, sounds like you have to bite the bullet.
I actually just had my roof replaced and received estimates for the identical material and specs that differed by a factor of 2. All were supposedly licensed, bonded, local companies, etc. I checked references and also chatted with a local roof material supply company. Apparently, some of the larger companies with dedicated sales people will subcontract the work; they were the ones that had the highest prices.


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RE: Re-Roof?

I like using smaller local businesses, as opposed to large companies, whenever possible. I like the level of service I get with them (usually) and prices are often lower than with the big organizations. I'll definitely be getting a number of estimates for the roof!


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RE: Re-Roof?

On your thought that "buyers will want to choose their own roof," while this may apply to kitchen and bath remodels, I think most wouldn't be that particular about what roofing you chose, as long as it wasn't something weird or really cheap-looking.


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RE: Re-Roof?

Funny, I was just talking to my insurance guy yesterday about the roof. Our roof is 19 years old and a 25 year roof. Good condition but we put on an addition last year and couldn't match the color of the shingles so we will reroof before we list it. Insurance guy said we would have to anyway because it's almost impossible to get insurance on a roof over 15 years old.


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RE: Re-Roof?

Funny, because I just switched insurances with a 22-year old house (which we just replaced). Nobody mentioned the condition of the roof.


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RE: Re-Roof?

nosoccermom,

I'm with you. Never have been asked the age of the roof by an insurance rep.


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RE: Re-Roof?

Get the re-roofing done before the landscaping.


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RE: Re-Roof?

Bought an older house in Florida last year and you need a separate roof inspection plus wind mitigation. Our house passed but it was noted that the roof had been repaired. This made the insurance company nervous and sent another inspector. We got the insurance, but am paying more because of the roof. We know it will have to be replaced in the next 5 yrs or less.

You should replace the roof or it will cause you problems.

Jane


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RE: Re-Roof?

I've been following this with interest as I plan to sell and my roof is looking less attractive lately with darkening algea stains and I believe a little moss...but ncralestateguy, what did you mean by: "Plus, why give up leverage before the negotiations have even started? Use the repair to get something that you would like... " Sorry if it's obvious, but I'm not sure what you mean. Thanks so much! I had figured I was going to try selling w/o replacing as there is no way I can recoup any of the cost in my neighborhood, but after reading the replies it might mean actually selling!


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RE: Re-Roof?

I am also in Central Florida. A couple years ago (after the year of the 5 hurricanes) many insurance companies cancelled policies.

Before the new Insurance Company would insure us they came out and had a look at our roof.

ML


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RE: Re-Roof?

Peegee,
I was referring to the comment for the seller to just offer an allowance.
If a buyer offers anything of value up front, then they can not use this concession to get something for themselves. You can go into the deal knowing that you will give it up, but at least try to get something for it first.


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RE: Re-Roof?

peegee, can you have the roof (1) evaluated and (b) cleaned and spruced up?


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RE: Re-Roof?

The buyers will have to get a roof & wind mitigation inspection to get homeowners' insurance. You live here in FL, you already know how difficult that is under the best circumstances.
Part of that is the roof has to have a certain # of years life left according to the inspector (I just don't recall, 3 or 5 years, something like that) or nobody will insure it.
If it fails inspection, the buyer will have the upper hand,
Therefore, I suggest that you get the new roof and include all the wind mitigation clips (or whatever is available) to meet the strictest requirements - and then be sure buyers know this amazing feature!
An insurance agent can probably give you a rough % that wind mitigation will save your buyers in the long run.


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RE: Re-Roof?

Chadoe, your being in Florida makes me wonder if the condition ( or age) of your current roof would make it difficult for the buyer to obtain homeowners', or windstorm insurance?

We were in a similar situation when we planned to sell our house in Miami several years ago. Our roof was 19 years old ( shingle) at the time, having been replaced after Hurricane Andrew in 1993. We had been chasing some small leaks, and were looking at roof repairs as part of the preparation for selling the house. Some of the trades-folks doing work on the house related their own experiences, telling us that due to the age of our roof, Citizens' insurance would likely not renew our windstorm policy unless we replaced the roof, and any buyer would expect a generous allowance to replace it. We figured that we'd replace the roof, and probably be able to do so for less than any buyer's allowance, and that is what we did. The new roof, especially with the warranty which included one new homeowner, was a good selling point, and the buyers had no problems getting homeowner's insurance.


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RE: Re-Roof?

Most buyers have no interest in doing even the most trivial repairs, I'd definitely get it done before listing to expand the pool of potential buyers. Sometimes this is for good reason-- a completed repair that is rolled into the price is covered by the mortgage, while the buyer may have to come up with cash out of pocket to complete the repair after the sale, which they might well not have even if they bought the house at a lower price because of the needed work. This also caps your risk-- you put a set amount of money into doing a decent replacement and it removes this fairly large item from the negotiation. A buyer, if willing to even consider a property needing work will assume a high cost for the repair and negotiate accordingly. If it's done it doesn't enter the discussion.


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