Should I Buy a Home That Needs a New Roof?

So, you found your dream home! The crown molding is just what you’ve always imagined, the cedar fence in the backyard is perfect for the dogs, and oh, that four-seasons porch! It really is perfect… except for that roof.

Buying a home with a questionable roof – one that clearly needs to be replaced – can certainly make you pause and ask yourself several questions: Is it worth the time and cost to replace it? Can I turn this into a strong negotiation point in my favor? Should I just run away right now?

Explore the pros and cons of purchasing a house that needs a new roof, and learn important considerations to keep in mind as you decide if your dream home just needs a little work — or if it’s actually a devastating money pit.

Pros and cons of buying a house in need of a new roof

Take some time to consider the implications of proceeding with the purchase, including some key pros and cons:

Pros

Negotiation leverage

Work with your real estate agent to potentially ask for a lower purchase price or possibly a credit toward the cost of a new roof. You may be able to ask the seller to pay for the replacement, depending on how urgent they are to sell. You’ll likely need to acquire a few estimates from contractors to strengthen your request as you negotiate for a roof replacement.

Customized look

Not loving the weathered tan shingles the last homeowner used? Now’s your chance to install a new roof with the material, color and style that best fit your taste (and possibly better match the house and the surrounding neighborhood).

Increased energy efficiency

Chances are good that old roof is far from energy-efficient. A replacement will include the latest innovations and techniques developed over the last few decades that drastically improve energy savings in your home. Plus, depending on your choice of roofing materials, you may be able to make significant improvements: Metal roofing, for example, has been shown to improve a home’s energy savings by up to 25%.

Cons

Budget breaker

If you’re hit with the full cost of a replacement, the significant upfront outlay could derail any other plans you had for other improvements, new furniture, etc. You’ll likely need to rework your budget to accommodate this big expenditure.

Potential hidden issues

Like many home projects, the roof replacement might uncover hidden (and potentially even bigger) problems, including wood rot, structural issues, leaks and more. Depending on what you find, that straightforward roof replacement might become a lot more expensive (and take much longer to complete).

Extended move-in timeline

Obtaining estimates, scheduling a contractor, and waiting for the work to be completed can all be time-consuming and might delay your move-in plans. The timeline might be extended even further if your area is experiencing a lot of rain or severe weather that delays the work.

Questions to ask when considering a roof replacement

After weighing the pros and cons, keep some important considerations in mind as you decide if you should buy a house that needs a new roof:

Is a roof replacement factored into the listing price?

If the seller is aware the roof needs to be replaced, it’s typically reflected in the listing price. A roof can be a significant factor in determining a house’s overall value, and a visibly bad roof can not only scare buyers away but also lower the appraisal price. If you feel the replacement cost is not adequately represented in the listing price, it can be a key point for negotiation and potentially lead to a lower sale price.

What effect will a bad roof have on my homeowner’s insurance?

Depending on its condition, a deteriorating roof can negatively impact your insurance costs. Many insurance companies see a bad roof as a substantial risk that increases the chance of additional water damage, structural issues and, therefore, potential claims. That means they can potentially limit your policy, charge higher premiums, or even refuse coverage. Some companies may require a roof replacement before even issuing a policy. And because lenders require proof of insurance, you’ll be forced to deal with these insurance headaches before you’re able to secure a mortgage.

Will the roof replacement affect my mortgage?

Lenders tend to have some fairly strict requirements when it comes to the condition of a home and property. Because a bad roof can mean a lower appraisal value, it can affect the amount of the loan you’re able to secure. You may even be forced to replace the roof (or convince the seller to do so) before you’re even considered for loan approval, or you may be limited to stricter mortgage terms if your lender views the damage as too severe.

Turn to the trusted roof experts at Honest Abe

As daunting as a roof replacement might seem, the process is straightforward and can usually be completed fairly quickly by a professional roofing company. A number of helpful programs are even available for some homeowners to help pay for home repairs, like a roof replacement.

At Honest Abe, we know replacing a roof is a significant financial decision, so make sure you’re investing in a high-quality roof installed by experienced professionals. If you’re ready to make that leap into your dream home, contact us today!