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When I bought the house 3.5 years ago, the inspector marked as needing a new furnace, water heater and roof. I've replaced the water heater but am hesitant to replace the furnace due to the cost and my holding period. Same with the roof. I am not sure what the threshold is for getting a mortgage with an older roof. I bought the house with FHA financing so it was inspected by an FHA inspector but no issues with roof, just some paint and railings here and there around steps, etc.
The reason I ask is because the house is a rental and pouring money into it for a new roof will effect my profits enough that I'd rather avoid replacing it. But at the same time, I may be forced to replace it for the sake of the seller being able to get financing for it.
If it passed FHA inspection three years ago AND there has been no signficant "damage event" odds are that the roof will STILL pass FHA inspection. Even if there was a "damage event" making patches / repairs to the areas in the worst shape may be a more cost effective way to ensure FHA compliance.
The basic stance of a "home inspector" is to point out to buyers what items are "nearing the end of their lifespan" which is different than the task of FHA inspector which is to ensure that the home will provide buyers with a safe shelter. Unless the roof is literally failing it is unlikely that a lender would require replacement.
It is unlikely that a new roof would increase the value of the home as much as the total cost of the roof, however depening on likely local competition it may be make sense to determine if a new roof might help the home sell more quickly / a bigger pool of buyers.
When you factor your local market conditions you may decide that it makes sense to discount the home with the assumption that the new buyer would rather get a bargain and then put on their own roof / do other upgrades.
OK, so even if financing isn't an issue, buyers may be turned off or ask for a discount as you stated. Trouble is how would I know the financing will be an issue before trying to sell? Trying to get a roofer to replace the house while it's listed is going to cost even more due to the time constraint.
It costs 8K to replace the roof but maybe I should just do it for the sake of being able to sell it. Will really depend on how much I have to spend to turn the interior from the damage tenants seem to always cause.
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