It is a common dilemma that many home buyers face. You find the perfect home for your family, only to discover the roof needs to be replaced. With the national average cost of roof replacement at just over $6,500, it can be financially difficult to continue with the purchase of a home that needs a new roof. Fortunately, you still have options. If you are interested in buying a home that needs a roof replacement, consider alternative funding sources. Here is a closer look at some viable ways to replace your roof without falling into financial disaster.
Roofing Problems You May Encounter
It can be difficult to determine the extent of a roof problem by visuals alone. Before buying a house, it is critical that you have experienced roofing contractors thoroughly inspect the roof and attic for signs of damage. In some instances, the problem may be connected to a simple leak. Perhaps a shingle came loose or some roofing cement is missing. If the damage is caused by a simple leak or similar issue, the roof can likely be repaired without the need for replacement.
However, if the damage is found to be more extensive, a full roof replacement may be necessary. Complicated roof leaks occur when water comes through the roof in one area and exits through the ceiling in a different area. The greater the distance between the entrance and exit spots, the more complicated the repair is to make. Certain types of roofing materials are more prone to these complicated leaks, including tile roofs and roofs with ridge vents. If you are aware that your roof has a leak, have roof repair contractors find the entry and exit points of the leak to determine if a repair or full replacement is the better option.
The presence of structural damage can also be worrisome to home buyers. As water infiltrates a home and saturates the wood structure, rot can develop and spread. Eventually, wood rot results in the destruction of the roof frame. If this type of issue is caught early on, repairs such as “sistering” can be used to help support the structure. However, if the structure of the roof is too far damaged, it may need to be rebuilt from scratch using new materials that meet current building codes.
Funding Options for Roof Replacement
If you considering buying a home that requires a roof replacement know that you have more negotiating power than you realize. As most insurance companies will refuse to issue a policy on a roof that is very old or severely damaged, you may be able to get financial assistance with any roofing work that needs to be completed. Often times, the seller will pay all or some of the cost for a roof replacement to ensure that the deal goes through. If the seller denies your request, funds can also be acquired from the seller’s insurance company or from a loan.
One of the first avenues you should consider is having the seller pay for the roof replacement. You may choose to ask the seller to purchase the new roof without increasing the sale price. Or you could mutually agree to set a sum of money into escrow for the replacement of the roof after competition. Talk to your real estate agent to see if he or she can make this happen. It is important to understand that not all home sellers will agree to replace the roof, and if this happens, you will need to decide an alternative solution or be prepared to walk away from home altogether.
If the home buyer refuses your request, see if the buyer would be willing to split the cost of the roof replacement. Although you will still be responsible for a portion of the final bill, splitting the cost could lower your financial responsibilities considerably. You can base the percentage of the split on a variety of factors, such as the age of the roof, the cost of the home, and how long the house has been on the market. Or you may choose to split the cost exactly in half.
Another option for paying for a roof replacement on a home that you are interested in purchasing involves the insurance company. Speak with your real estate agent about having the seller’s insurance company pay for the cost of the roof replacement. Depending on the age of the roof and how the damage occurred, the home seller may be able to file a claim with their insurance company to cover all or part of the bill. Know that if a roof has surpassed the ten year mark, most homeowners will only receive reimbursement for the depreciated value of the roof.
If both the seller and insurance company deny your request to pay for the roof replacement, you may want to consider a home improvement loan. A purchase-and-renovate loan can be useful when you need the funds to pay for a roof replacement. These types of loans are common among homeowners buying fixer uppers. With a renovation loan, you can finance both the purchase of the home itself as well as the cost of renovations all in one convenient loan. With a renovation loan, you do not have to come up with the cash to make major repairs and replacements before buying.
Consult with Roof Replacement Contractors
If you are able to buy a home with a solid roof, that is often the best approach. However, do not walk away from the perfect home solely because of a bad roof. Today there are many excellent financing options for home buyers interested in purchasing fixer uppers. Start by discussing the issue with your real estate agent who will pass on your concerns to the seller. Often times, sellers will do their part to help complete the purchase deal by paying for part or all of the replacement costs. For more information about roof replacement, contact the roof replacement contractors at Beyond Exteriors.