Does A Roof Near The End Of Its Useful Life Affect Appraisal Value?

[Denita Neuenhaus]

I am a Realtor and this is a question regarding value of a SFH. The subject property was built in 1996 with a composition shingle roof and the roof has never been replaced. In fact, the seller disclosed at the inspection that they frequently, at least once per year, pressure clean the roof. Here in S Florida, pressure cleaning composition type roofs is not a good thing for roof maintenance.

According to the inspection report (not appraisal, actual third party physical inspection) there are no active leaks at this time.

Question: Will the age of the roof affect the appraisal value? This is a conventional loan with 20% down, not a government type loan if that information helps.

 

[EddieB]

The age and condition of all improvements and components are considered and adjusted (if necessary) in the Condition Ratings.
If a comparable sales or the subject has updated components then you should expect the market participants will react and should be reflected in an appraisal.

 

[Randolph Kinney]

As long as the roof estimated life is 3 years or more, no leaks, no missing shingles, or curled up shingles, it should pass underwriting.

 

[Walter Kirk]

The condition of the roof, like the condition of the air conditioner or floor covering should affect the market value of the property.
As a Realtor I'm sure that you have listed or shown properties which needed repairs or redecoration. Ask yourself how the buyers
reacted to properties in need of repairs.

 

[Meandering]

Depends on the appraiser and the comps.

Sales of similar aged homes without a roof replacement = no adjustment. Comps with a brand new roof, might need a negative adjustment, just depends on the market and the comps and the knowledge and experience of the appraiser.

.

 

[Denita Neuenhaus]

Depends on the appraiser and the comps.

Sales of similar aged homes without a roof replacement = no adjustment. Comps with a brand new roof, might need a negative adjustment, just depends on the market and the comps and the knowledge and experience of the appraiser.

.

Yes, we are expecting the roof to affect the value negatively.

Thank you for all of your thoughtful replies.

 

[Terrel L. Shields]

Yes, we are expecting the roof to affect the value negatively.

It will impact value if the appraiser agrees. It isn't a separate line item however, but an assessment overall of the property that will be the judge. If there are curling shingles or chunks of shingle falling off the roof, they are likely to flag it as a repair item.

This is a roof that will get flagged for sure (if the appraiser knows squat) - Why they didn't repair this while repairing the main roof, I donno.

 

[Denita Neuenhaus]

I am amazed at that obvious 'miss' by the roofers on the picture you show above ^^^.

PS
On the original question asked, I just got a verbal from the lender that the appraisal came in at $260,000, which is contract price. Surprised me. I haven't seen the report yet. We are now having to negotiate the roof separately as it will need replacement in less than 3 years. [We didn't discover the roof age until the physical inspection and this particular building department has no building permits online.]

By the way, the lender used an appraiser directly. This particular lender doesn't use AMC's.