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Old 09-21-2008, 05:54 AM
 
Location: Milwaukee, WI
603 posts, read 2,234,253 times
Reputation: 305

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We have lived in our house for almost 10 years. It's a starter home in an affordable neighborhood so we're hoping that will help it sell within a reasonable length of time. Our community's housing market has declined like everywhere else, but not crazy like Florida or California. We'd like to put it up for sale in the spring. We have good credit and equity in the house. Our roof needs a complete tear off. It's not leaking but there are some curled shingles. The roof and gutters needs to be replaced but we don't have the cash to pay for it. The total would be about $8,000 (it's a pretty small house).

Is it better to get the work done before we put it on the market (and get a home equity loan) or list the house with the statement that we'll knock $ off the listing price to pay for a new roof? Or should we just put it on the market and not say anything about the roof and hope people won't notice. Or could it be something that we use as a negotiating tool during the sale (if the potential buyers bring it up, then we say we'll knock off the price and they'll feel like they're getting a good deal) We have a friend who's a home inspector and he said he wouldn't be too worried about the roof (and suggested to just get the gutters replaced) but another friend who fixes chimneys said the roof will affect the sale of the house. Then a real estate agent friend looked at the roof and said it was fine (she agreed to replace the gutters). The roof doesn't look too bad, but to people that know anything about houses or construction, it's obvious it needs to be replaced in the next 1-2 years. I'm so confused what to do with these mixed opinions. My vote is to go with the home equity and get it done, but my husband doesn't want to get a second mortgage for something that may not be an issue for a potential buyer. I am thinking along the lines that a new roof would improve the curb appeal and since we need to get the gutters done anyways, we should do it all at once (the gutters definitely need to get done-they are rusted and don't work properly). This is the first time we've sold a house and in this market, we need all of the advise we can get!
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Old 09-21-2008, 06:05 AM
 
Location: Milwaukee, WI
603 posts, read 2,234,253 times
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P.S. I hope I didn't post this in the wrong forum. Feel free to have the moderator move to the general "real estate" forum if that is where this thread should be.
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Old 09-21-2008, 11:30 AM
 
Location: Just south of Denver since 1989
11,574 posts, read 31,858,316 times
Reputation: 8356
What about homeowners insurance?
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Old 09-21-2008, 11:58 AM
 
Location: Right where I want to be.
4,507 posts, read 8,510,272 times
Reputation: 3348
What does your real estate agent recommend? Would buyers in your area rather have an allowance or the new roof?

Unless the buyers forgo an inspection you have little chance of them not knowing about the poor condition of your roof. I can't imagine you would find anyone who would not have an issue with it, it's not like ugly paint that can be easy and cheap to change....and some people can't even see beyond that!!


$8000 also seems high for a small roof. Did you get multiple bids on the work?
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Old 09-21-2008, 12:18 PM
 
Location: Olympia
1,022 posts, read 3,901,407 times
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Littledog,

There are several options beside the home equity loan.

Hire a reputable roofing company and find out if they will issue a 5 year roof certification. If the roof has less than 5 years of life left, maybe repairs can be made, rather than replacing the whole roof. Most mortgage companies will not lend on a home with less than 5 years of roof life left, so it is in your best interest to address the roof before you sell the house.

If you're faced with having to put on a new roof, try to find a roofing company that will agree to be paid out of escrow, as long as the house sells within a certain time frame. This way you can avoid the financing fees of a home equity loan.

I hope any of these options will work for you.

Sandy
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Old 09-21-2008, 01:54 PM
 
Location: Barrington
60,336 posts, read 41,242,665 times
Reputation: 19449
Quote:
Originally Posted by Sandy Nelson View Post
Littledog,

If you're faced with having to put on a new roof, try to find a roofing company that will agree to be paid out of escrow, as long as the house sells within a certain time frame. This way you can avoid the financing fees of a home equity loan. Sandy
Sandy, I really like this one.
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Old 09-21-2008, 05:05 PM
 
33,340 posts, read 52,836,829 times
Reputation: 19766
in TX anyone who purchases a house has first a 10 day option period --you buy it for usually $100 which is not returned to you if you decided not to go forward to closing--that time is used for inspections and appraisal if necessary--
if there are items the inspection says need to be repaired/replaced then there is renegotiation with the seller...

if your roof will pass inspection then you don't need to pay for one--the buyers are not getting a new home..now if the gutters are not in good working order even if they are older--that needs to be repaired/replaced...

why does your roof not have a warranty if it was installed new when home was built--
a roof should have more than a 10 yr shelf life--
if you have had hail damage or storm damage--you should have filed a claim with insurance and had them assess the damage...
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Old 09-21-2008, 05:27 PM
 
Location: Milwaukee, WI
603 posts, read 2,234,253 times
Reputation: 305
Thank you for the suggestions!! Just to answer a few questions brought up. The roof was not new when we moved in (our house is an old house-it was built in 1942). When we bought the house, our home inspector stated it needed to be replaced in the next 6-8 years (although we heard they tend to be conservative-it can usually go a little longer). I only have one quote for the roof and gutters-I will get 2-3 more before picking a company. I heard the quotes can vary dramatically for the same job. I think in Wisconsin, a home inspection is required before closing. It sounds like most people are leaning towards thinking a roof replacement is a good idea? We'll definitely replace the gutters so it makes sense to do both. I like the idea of a 5 year replacement. So many people have said it is in decent condition (I guess that's why we keep putting it off!) Otherwise, our house is in good condition.
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Old 09-21-2008, 05:43 PM
 
Location: Kirkwood, DE and beautiful SXM!
12,054 posts, read 21,797,408 times
Reputation: 31852
Please see if all of the suggestions you received will work for you. It is not the best time for a home equity loan or any other large debt.
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Old 09-22-2008, 06:31 AM
 
Location: Milwaukee, WI
603 posts, read 2,234,253 times
Reputation: 305
You're right-home equity loans are a bad idea in this market (we've always saved up and paid for home repairs/remodeling in cash). So it sounds like we need to get the roof fixed before putting it on the market and work our tails off to get money for this roof and pay in cash. Home owner's insurance is not an option-we only need a new roof because of aging, not because of a storm.

Thanks for helping me sort this one out!
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