Will a New Roof Improve Resale Value?

Dear Dave,

We are looking at putting a new roof on our home this summer and I wanted to get your opinion on different materials.  I typically see shingles or metal roofs, what is your opinion on which of those is best?  Are there any other materials that you would recommend that might be better? 

We will be retiring and selling our house in a few years, so we want to get our money’s worth.

John and Kate, Grand Junction, CO

---

 John and Kate,

When making home improvements it is always wise to consider your return on investment prior to making any selections or firm decisions. However, selecting a new roof and basing your decision on return on investment can be a tricky proposition. One thing I have learned over the years is, there are a few basic characteristics every home buyer expects as a given when purchasing their home and having a “decent” roof is one of those expectations. Buyers expect, and rightly so, that the roof will be in good condition with a minimum of 3 years remaining on the anticipated life expectancy.

“Because it is a basic expectation for any buyer that the roof be in good repair, you can assume that very few, if any, buyers are going to be willing to pay significantly more for the home because the roof is new or newer. ”

Because it is a basic expectation for any buyer that the roof be in good repair, you can assume that very few, if any, buyers are going to be willing to pay significantly more for the home because the roof is new or newer. They will appreciate that your roof is in better condition and it may help sell your home faster or help it beat out another competing house, but as long as the life expectancy is more than 3-5 years don’t expect to reap any real tangible monetary benefits. That being said, you do have the opportunity to impact the price of your home, monetarily, by replacing your roof with a different material or texture that will impact your home’s appearance.  

Buying a home is an emotional experience and homes that have a unique appearance or unique characteristics certainly can get a leg up on the competition during the sales process. Consider using a standing seam metal roof or a thicker architectural shingle for your next roof!  Metal roofs provide a fresh look and are becoming very popular. If your home lends itself to mixing the surfaces, you can create wonderful street presence that will help you stand out from the other homes that are for sale and even other homes in your neighborhood. You can also provide a pop of color, but don’t go too crazy with the color. A thicker architectural shingle can also look wonderful and provide some depth where none previously existed. These thicker shingles generally are used when replacing shake shingles, as they help maintain some of the original look. You can also go the way of a tile roof, but be careful that you do not over build your neighborhood or over improve your property. 

There are options out there to dabble with some new looks, however note that these options will be more expensive and less budget friendly than a standard 30 year architectural shingle. Be mindful of your budget and anticipated return and don’t be afraid to ask for other professional opinions prior to making the leap on your next roof. Hope this helps and I bet it turns out great!

 Dave Kimbrough
The Kimbrough Team

Have a question? Ask Dave!

Is there still a market for homes on larger acreage even though most newer homes are in subdivisions?

Dave,

We live in a semi-rural area on two acres, but several subdivisions are going in nearby. My husband is concerned that it will decrease the value of our home and property. I know that you say there is "a butt for every saddle." In your experience, is there still a market for well-kept homes on larger acreage even though most of the newer homes are in subdivisions?

Dan and Donna

---

Dan & Donna,

Great question! Yes, there is “a butt for every saddle” and yes, I do believe there will always be a market for well kept homes on larger acreage! Sprawl will happen and with higher density developments you create affordability (at least that is the thought) and our area needs as much affordable housing as we can get, but ultimately there will always be those who desire “elbow room”.  What many new subdivisions lack is elbow room, privacy and enough space for RV parking! The one caveat to my answer here depends on how close the new subdivisions are to your property and how dense the density?

If the new subdivision borders your property or it is very close (within easy sight) and the density is higher than 4 homes to the acre, then there is a fairly strong chance that it may have a negative impact on your property value. If “nearby” means down the road a quarter mile etc…then I would suggest you worry not and just enjoy living there! There will always be a market for well kept semi-rural properties on two acres!  Famous last words…

Dave Kimbrough
The Kimbrough Team

Have a Question? Ask Dave!

Should we turn our rental home into an Airbnb?

Dave,

We own a rental property Downtown and close to CMU. The lease is up soon (when college lets out) and one of our friends asked if we had thought about during it into an Airbnb instead of finding another 12-month tenant. They’ve certainly got us thinking! It’s a great location and we think we’d get quite a bit of traffic. Do you have many clients purchasing investment properties to use as Airbnbs? In your opinion what are some of the pros and cons of switching over from yearly leases?

Mike and Lynn, Grand Junction

---

Mike & Lynn,

I think it’s a great idea! Doing an Airbnb or VRBO can certainly be a very lucrative way to go and potentially prove to be much more profitable than a renter on a 12 month lease. We certainly have clients to look to purchase homes/rental units with the specific intent to use them as Airbnb or VRBO and many of them have proven that they work amazingly well, but they do take a bit more of a hands on approach than a traditional rental property. 

If you use the VRBO or Airbnb website to schedule bookings etc. the interface is pretty seamless, however, it does take time to interface with each client who comes and goes. With the amount of traffic, new people coming and going on a day to day basis, that is generated you have to be aware that problems will arise.  The key  does not work, the pilot light went out, they are lost and trying to find out where to go, they arrive a day late, arrive a day early etc. Things happen and when they do many times you are the one they will need to reach out to. Also coordinating the cleaning of the property between renters takes attention and a bit more hands on effort. There are property managers for Airbnb’s and VRBO’s and I have heard they are very useful for cutting down the hassle, but they will take about 20% of the nightly rate for their management fee. If you don’t have property management in place, just expect that you will have to be aware of all the coordination of arrivals and exit, maintenance, cleaning and everyday issues that just happen. 

“Also keep in mind that one of the keys to success we have seen is having a super “cute” property in a great location.”

Also keep in mind that one of the keys to success we have seen is having a super “cute” property in a great location. Location and electronic presentation on the websites (along with great reviews) will all dictate your profit or loss! It’s not a quick buck model, but if you take the time to learn how to do it right it can be fun, rewarding and financially beneficial!    

Dave Kimbrough
The Kimbrough Team

Have a Question? Ask Dave!

Do you need an inspection on a new construction home?

Dave,

My wife and I are currently building a house and wonder if we need to get a home inspection even though the home will be new? We don’t want to spend money if it isn’t necessary, but also want to make sure we go through every process correctly. If we do need an inspection, at what point in the building process should we have it done?

Thanks, Josh—Grand Junction

---

Josh,

Yes. It is my recommendation that you always get an inspection (especially if the home you are purchasing is NOT new), but I will say that if there is one scenario where it might be ok to skip the home inspection it would be in the case of new construction. You have to remember that any new home has been inspected over and over and those inspections have also been inspected. To put it mildly, any new construction project has been meticulously inspected from the foundation up and this ensures that each new building has been built to local building codes and is structurally sound and mechanically safe. These inspections catch most mistakes along the way and thus limit the real effectiveness of a new home inspection for anything but minor/cosmetic items. 

A home inspection will cost somewhere between $300 -$450 and my experience is that very few substantive items are discovered on new construction home inspections. Generally items that are discovered are VERY minor, but there have been times where something more significant was found and needed to be corrected. I will also point out that virtually every one of those more significant items would have presented themselves in short order without the home inspection. From a timing perspective, you should consider the home inspection sometime around the CO, Certificate of Occupancy. If you use this time frame, you can be confident that the home will be mostly complete and all that is left will  be mostly cosmetic issues. This is also a good time to do the inspection as any items identified can just be added to the builders punch list to complete prior to close.  Although there are no guarantees with getting any home inspection, they do provide some surface level peace of mind. Also remember that every builder will provide at least a 1 year home warranty for your entire home and most of them are willing to help even after that one year if the problem proves to be a material or workmanship issue. 

“Ultimately what an inspection on a new home provides is some insurance that there are no major problems with the quality of construction, workmanship or mechanical systems.”

Ultimately what an inspection on a new home provides is some insurance that there are no major problems with the quality of construction, workmanship or mechanical systems. You have to ask yourself if the peace of mind is worth the cost? I can say that I have not seen a home inspector yet that is as qualified as the general contractor you hired to build your home and the inspections your home goes through prior to getting its certificate of occupancy have been extensive and complete. It is a call you must make, but it is completely understandable if you skip the home inspector on a brand new home! Hope this helps.

Dave Kimbrough
The Kimbrough Team

Have a Question? Ask Dave!