Buying A House With An Old Roof

Factors That Influence The Cost Of Replacement Or Renovation Of An Old Roof

1. The type of roof you want

The type of roof you want will have a big impact on the cost of your roof replacement. There are a variety of different types of roofs for you to choose from based on your budget and the look you want. 

If you’re on a tight budget and looking for an affordable roof, an asphalt shingle roof might be right for you. But if you’re looking to upgrade to a longer-lasting and sharp-looking roof, there’s the standing seam metal roof. 

Asphalt and metal are two of the most commonly seen roof types, but there are also premium shingle roofs that come at a premium price. These roofs give you a unique look that really stands out. These premium roofs include cedar shake, slate, and tile. 

The premium shingle roofs can get expensive quickly and be more than triple the cost of an asphalt shingle roof.

2. Your roof system’s materials 

A roof is made up of more than just the shingles you see on the outside. It’s made of different roofing components and materials that all go into the cost of your new roof. 

Including your shingles, the components that make up your roof system are: 

• Underlayment 
• Ice & water shield 
• Starter shingles 
• Ventilation system
• Ridge capping

While these are the roof system’s main components, there are other roofing materials included in your roof replacement such as roof flashing, drip edge, and pipe boots. 

Remember, all your roofing components and materials impact the cost of your new roof. With that in mind, it’s absolutely crucial to invest in quality instead of getting the cheapest materials to lower the final cost of your new roof. 

3. The labor and time to complete the job

Labor and time are two of the main factors a roofing contractor considers when calculating the price of your new roof. If anything takes time and labor, it will show up in the final cost of your roof replacement. 

The labor cost of each man on a crew is based on their skill level, experience, and how much they can get done in a day. The labor cost will vary from contractor to contractor. 

The time it takes to complete the job is also a factor. The more time a roofer has to spend on your roof and property will always affect the price of a new roof.

If the roof is complex and hard to access, then it’s going to take longer and more labor to complete. From tearing off your old roof to cleaning up your property after the job is done, if it takes manpower and time, it’s going to impact the cost of your new roof. 

4. Your roof’s accessibility

Your roofing contractor needs an easy access point to tear off the old roof, get the torn off materials into the dump truck, and send the new materials back up to the roof for installation. 

The harder your roof is to access to do these tasks, the more it impacts the cost of your new roof. But what can make your roof hard to access?

The amount of landscaping you have around your house, a fence, how far away the materials and how far the dump truck is from the roof’s access point all go into accessibility.

For example, a home with rows of shrubbery, a fence, and a driveway that is far away from the installers and your roofing materials will cost more than a home with a roof that is easy to get to.

5. The number of penetrations your roof has

A roof penetration is anything that pokes out of your roof. Some of the common penetrations that your roof has are plumbing vents, gas vents, kitchen/bathroom vents, skylights, and chimneys.

The more penetrations your roof has, the more time and manpower it takes to work around them to install your new roof. Smaller pipes or vents won’t add that much to the cost. 

However, bigger penetrations such as skylights and chimneys take longer to flash and to work around, so they add more to the cost of your new roof.

6. The size and complexity of your roof

This may seem pretty obvious, but the square footage of your roof impacts the cost of your new roof. Square footage affects the amount of materials used, labor, and time needed to complete the job. 

The size of your roof impacting the price is pretty obvious, but most people don’t consider their roof’s complexity when getting an estimate for their roof replacement. Roof complexity is how many facets, hips, valleys, and the pitch (steepness) your roof has. 

A roof that is cut up with a high number of facets at multiple angles, hips, valleys, and a steep pitch is more difficult and takes a lot longer to roof than a simple ranch style roof with only two or four roof facets. 

You also need to consider how tall your roof is. The higher the roof, the more precautions the installers have to take. For their own safety, they have to move slower and more carefully.

7. The amount of decking that may need to be replaced

Decking is the wooden boards that make up the framing of your roof. These boards are what your shingles and other components are installed on. 

The amount of roof decking that needs to be replaced will impact the price of your new roof. Be aware, it can be difficult to tell what the condition of your roof’s decking is until the old roof has been torn off.

If your roofer knows you need it replaced at the start, it will be included in your roof estimate. On the other hand, if they find that your decking is bad while tearing off the old roof, the cost will be added to the final invoice. 

8. Dump fees for getting rid of your old roofing materials

When you get a new roof, your old one is usually torn off. During this tear-off process, there’s a lot of debris coming off your roof. All that debris has to go somewhere once it comes off your roof. 

The debris from your old roof will be loaded up into a dump truck to be taken to a dump of the contractor’s choice. The dumpsites charge significant fees for this service, and they are going up all the time. 

Because of this, the dump fees and the labor cost of the employee to dump your old roof will impact the cost of your new roof. 

9. The operating costs of your roofing contractor

Every roofing contractor has operating expenses to keep their business going. These operating costs will always factor into the price of any roof work that needs to be done. 

Some common operating costs are:

• Building cost and utilities, shop and truck yard
• Advertising and promotions
• Vehicles (fuel and insurance)
• General liability insurance
• Workers compensation insurance
• Licenses and bonds
• Training 
• Payroll and payroll taxes
• Taxes (Federal and local government)

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Defects Usually Found In An Old Roof

Here are some telltale signs that your roof might need to be replaced:

• Sand-like granules collecting in your gutters
• Mold along the edge of the roof
• Dented shingles
• Missing shingles
• Torn flashing
• Sagging
• Daylight showing through into the attic
• Dried out caulking under the flashing
• Blistered ceiling paint and/or stains on the interior of the home

When selling, how much value does a new roof add?

You will increase your resale value on your home if you add a new roof. Remodeling Magazine says that from its survey regarding cost vs. value, a new roof can increase your home’s value by around $12,000. The survey also shows that when you have a new roof installed, you can recover around 63 percent of the installation cost through the increased value.

How does a new roof affect the return on your investment?

In Remodeling Magazine’s 2017 report, it’s said that a new roof can add $14,000 to a home’s value. Add the extra curb appeal you get with a new roof and now you’re able to see why replacing the roof should be a higher priority on the list of projects for your home.

Some older homes have roofs that include asbestos in the material. As we all know, asbestos, though commonly used decades ago, is a massive health risk when people are exposed to it. Therefore, having that professionally removed and replaced with safe materials adds a health value that can’t be quantified.

Several factors can impact your return on investment. For example, most contractors will try to avoid layering shingles, as it can shorten the roof’s life by up to 40 percent. Furthermore, it will trap heat and add too much weight to the roof. So, if you have a new $5,000 roof placed atop an existing layer of shingles, your return on investment will be lower.

Regularly maintaining your roof will also impact your return on investment over time. For example, if you’ve just been hit with a big storm, have your contractor come out and do a thorough inspection, because small dings and dents that can be repaired easily now might be a bigger problem later.

Also, the materials you choose can impact the return on investment. Let’s say you put an asphalt roof on a home in a division where every other house has wood shingles – you’re going to be devalued for that, especially if you’re looking to sell any time soon.

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Get a Quote

You cannot talk if you do not know how much the repair or replacement will cost. You need to get a quote from a contractor. Make sure that everything gets an inspection. Once you have the price of repair or replacement, you can continue working toward the perfect deal. The seller might not offer you the full price of the quote, but he or she might offer other concessions.

Credit Is King

A part of the perfect deal is getting credit from the seller that can go toward replacing the roof. 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. Remember, buying a house requires a keen eye for details, negotiation skills, and a willingness to walk away if the seller will not cooperate.

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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.

So ask the seller how old the roof is, and inspect the gutters to make sure the drainage systems are in good working order. You also want to be on the lookout for dry rot—often caused by poor ventilation—which can cause sagging and crumbling.

You may be able to see from the ground whether there are cracked or missing shingles. But it pays to get a roofer to do an inspection, either before you make the offer or during the contract phase of the negotiations.

If the seller has already done a home inspection prior to putting the house on the market, ask to review it. Some states also require disclosure forms, mandating that the seller be up-front about any issues with the home. A qualified real estate agent can guide you through the process, providing specific advice for your area.

What it could cost you: If you do have to replace the roof, it can set you back—a lot. According to Piper, a new roof can run anywhere from $10,000 to $30,000, depending on the size of the home.

What to do about it: Just because a roof is old isn’t typically grounds for asking the seller to lower the price. But you may have room to negotiate if the roof hasn’t been maintained, and if repairs are necessary to fix evident leaks or other major issues.

More often than not, however, you’ll be responsible for replacing or repairing the roof. So factor this cost into your overall housing budget.

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Depending on the materials, a roof could last longer than the average (around 25 – 30 years). Asphalt shingles, composite shingles, metal roofs and other materials all have different life spans. And weatherization plays a large part in determining how often roofs need to be replaced.

So, how do you gather all of the facts and make an informed decision?

• Hire a home inspector to investigate the roof’s condition
• Ask the homeowner for documentation on the last time the roof was repaired
• Get a second opinion from a professional roofing company
• Inspect the roof and attic space yourself
• Get an estimate on how much the repairs would cost and when they’ll be needed

ONCE YOU KNOW THE ROOF’S CONDITION, IT’S TIME TO WEIGH YOUR OPTIONS

Be aware that you’re probably not the only person considering making an offer on the house. In a seller’s market, the homeowner won’t be as open to negotiation on roof repairs and price point.

Think of your roof appraisal as a way to protect yourself and align your purchase with your personal goals. Not as a way to leverage the seller into making repairs before you move in (though it could happen!).

Buying a house with an old roof simply means you need to do your homework. Then you can properly weigh your decision by comparing that assessment with your goals:

• How long do you plan to live in your new home?
• Do you have the budget to make roof repairs immediately (if needed)?
• Do you plan on making additions to the house that could affect the roof?
• If the condition of the roof isn’t ideal, would the seller strike a deal with you?
• What are the additional repairs needed? What does it all add up to?

WHEN TO WALK AWAY FROM A HOUSE WITH AN OLD ROOF: 3 SIGNALS OF A BAD SITUATION

Sometimes a roof is in such a poor condition, it’s best to avoid a headache altogether and let the homeowner figure out a way to make necessary repairs. Your home inspection should uncover these major issues, but, just in case, let’s cover the danger signals of a failing roof.

THE ROOF IS SAGGING DUE TO STRUCTURAL DAMAGE

If the actual structure of the roof is compromised, it’d be wise to step away from the situation. Replacing cracked or deteriorating roof beams can be an expensive (and unnecessary) investment for a home buyer to deal with.

THERE ARE PATCHES OF MISSING SHINGLES OR ALGAE OVERGROWTH

Are there missing shingles on the roof or patches of sunlight coming through to the attic space? This is likely due to very old shingles or other materials that require immediate replacement. Watch out for moss and algae growth on the exterior singles, too. Moisture in the attic space could mean poor ventilation issues which require further work to be done.

STAINS ON INTERIOR WALLS AND EXCESSIVE WATER DAMAGE

If there is an unnoticed leak in the roof for an extended period, it could have already damaged the ceiling and interior walls of the house. If you do see a stain, run your hand on the affected area and check for softness or signs of mold and mildew.

SHOULD YOU BUY A HOUSE WITH A ROOF LEAK?

Roof leaks are never good. If you’re questioning the severity of the leak, then it’s best to have a home inspector check for the root cause and signs of water damage throughout the house.

You may find that the leak is fixable with a simple cosmetic repair. Or that the leak hasn’t yet caused significant damage issues. For instance, water may have been trapped by debris or blockage on the exterior shingles, causing a leak to come through the roof by not letting it flow into the gutters. It’s an unlikely scenario for most slanted roofs, but it can happen.

WHAT IT COULD COST YOU?

If you do have to replace the roof, it can set you back—a lot. A new roof can run anywhere from $10,000 to $40,000, depending on the size of the home.

Just because a roof is old isn’t typically grounds for asking the seller to lower the price. But you may have room to negotiate if the roof hasn’t been maintained, and if repairs are necessary to fix evident leaks or other major issues.

More often than not, however, you’ll be responsible for replacing or repairing the roof. So factor this cost into your overall housing budget.

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What types are roofs are there and what are the lifespans

The 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).

A composite shingle roof has a lifespan of around 20 years and is the cheapest to put on a house (which is why they are a popular choice).

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.

You can tell a 3-D shingle apart from the composite by the depth / dimension of their appearance.  Once you’ve seen a few of each style, you’ll start to be able to tell the two apart.

The challenges of buying a house with a bad roof

A “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.”

The first problem will start in the ceiling and in the attic.  Sheetrock will get damaged and stained, insulation will get wet, electrical wires may be exposed to water, and anything in the attic will get ruined.

If the problem still isn’t addressed, it will end up draining down through the walls and eventually through the light fixtures–ruing a lot of what it touches along the way.

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.

You’ll need to factor in the possibility of damage to inner walls and other areas of the house if there is shown to be a leak.

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 years

You’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.

What does it cost to replace a roof

The 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.

In a standard roof replacement, what’s really being replaced is the singles on the roof–that’s the cheapest form of roof swapping.

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).

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.

Sometimes a seller is simply willing to make the repair on the roof to keep the deal in tact.

In either case, you’ll need to check in with your lender to see what your options are with dealing with the repair on the roof, and double check with the home insurance agent to make sure they are willing to sign off on any plan you come up with.

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Why it might be worthwhile to go forward with the deal

You 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 deal

If 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.

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