Home remodels can often become very expensive projects that end up not paying off when homewners sell. To the uneducated it may seem that any type of home remodel is beneficial and will increase the value of a home, but this simply isn't true.

Why ROI Analysis is Important
There are many factors that can come into play, such as region and trends in specific neighborhoods, but overall it's only smart remodeling choices that will add money back into your pocket. Paying attention to Return On Investment, or ROI, is the key to deciding what needs to be replaced and what you should hold off on.

Roofs are by far one of the most important parts of a house, aside from the foundation. A bad roof is easily one of the top dealbreakers for potential homeowners. This is easy to understand because a leaky, poorly shingled roof alone is going to be a major source of frustration, let alone the fact that a bad roof may have expensive damage hidden underneath.

That being said, even if a roof is leak-proof and no moisture damage has occurred, simply having an old or "dated" looking roof design can be unappealing, especially if nearby homes on the market have a common roof style trend going on already. Compared to other types of remodels done for aesthetics, such as house siding replacement, a new roof still often offers far more value.

Due to the overall importance of a roof and that it is often one of the first things that will be inspected by prospective buyers, it comes as no surprise that typically a roof replacement has a fairly good ROI.

Analyzing ROI on Roofs

Determining ROI isn't as complicated as it would seem, its simply comparing the cost of investment to the profit. In the case of a roof replacement you're comparing the cost of investing in a new roof to the profit you'll get back when the home is sold. Essentially you're determining if the value of a new roof is worth the money that would need to be spent.

That being said, the value of something isn't always monetary, especially when considering home remodels. In the case of ROI analysis of a roof, you must consider all 4 of the following points:

Will the roof improve structural integrity? - If the current roof is older, even if it's still protecting the home, a new roof may improve overall structural soundness.
Will the roof add insulation value to the home and/or reduce monthly energy costs? - The green movement is important to many which means homes that are better insulated and therefore have lowered energy costs are more attractive. Installing a more expensive but more advanced roof system with good insulation or even reflective capabilities can really pay off.
Will the roof last long enough that the homeowner will get value from it? - If you're not sure if you're going to sell your home soon, you should consider whether the roof you have in mind has a long enough lifespan that you'll actually be gaining value from it. If you have no interest in selling, this may change the ROI of the roof.
Will the roof material cost be equal or less than the value from selling? - Advanced roof systems that cost a significant amount of money may leave you in the red when it comes time to sell. It is important to do the math and see if the roof you'd like will either break even or, ideally, cost less than the value it would add to your home once on the market.

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Homeowners often get stuck at a crossroads between doing a full roof replacement or simply a roof restoration. Occasionally a professional roof restoration may be a happy medium, still adding a good ROI value to the home but without breaking the bank like a replacement may. Since a full roof failure is rare, a restoration that simply renews the shingles appearance while repairing roof membrane stress points could be a good option.

Depending on the contractor, location, current roof design and condition, a restoration could be half as much as a replacement, or better. If a home is well-kept, the roof had been maintained, and it already fits in fairly well with the surrounding neighborhood trends, the ROI analysis of a restoration may come up very favorably.

The ROI of a roof replacement averages about 60% on ideal terms, but this percentage can change quite dramatically based on location and a homeowner's specific situation. Getting the assistance of a professional contractor is a safe way of getting a ballpark ROI so you can compare roofing materials to one another as well as full replacement versus roof restoration. The time you spend doing this little bit of critical research will be worth it when your home sells for a higher value due to a smart roof remodeling decision.