Buying a House That Needs a New Roof? Negotiation & Loan Secrets

Is a Bad Roof a Deal Breaker? Or a Bargain?

You found the perfect house in the Uplands or Dunlap. It has the right school district, the right layout, and… a roof that looks like it survived a war.

Most buyers panic when they see curled shingles or moss growth. They see a $15,000 bill. Smart buyers see leverage.

Buying a house that needs a new roof doesn’t mean you have to walk away. In fact, if you handle the negotiation correctly, you could end up with a brand new roof (covered by the seller) and a higher property value on Day 1.

The “Hidden” Deal Killer: Insurance

Before you even make an offer, you need to know the #1 reason these deals fall apart in Illinois: The Insurance Binder.

To get a mortgage, you need homeowners insurance. However, major insurers (State Farm, Allstate, etc.) are becoming stricter. If a roof is older than 20 years or shows visible granular loss, they may:

1. Refuse to insure the home (which kills your mortgage approval).

2. Offer only “Actual Cash Value” coverage, meaning they won’t pay for a full replacement if a storm hits next month.

The Fix: You must clarify this during the inspection period. Do not wait until the week of closing.

Visual Guide: What to Look For

When walking the property, don’t just look at the kitchen. Look up. If you see curling edges (like in the image above), missing tabs, or heavy moss in the valleys, the roof is likely near the end of its life.

3 Ways to Negotiate the Roof

Once our roof inspection confirms the damage, you have three options to save the deal.

Option 1: Seller Replaces Before Closing

You ask the seller to hire a contractor and replace the roof before you take the keys.

• Pros: You move into a house with a new roof and warranty.

• Cons: The seller will likely hire the cheapest contractor they can find, using low-grade materials, because they don’t have to live there.

Option 2: The “Escrow Holdback” (Recommended)

You ask for the price of the roof to be deducted from the seller’s proceeds and placed in an escrow account. You then use those funds to hire your own roofer (like SNS Roofing) after closing.

• Pros: You control the quality of the work and the warranty transfers to you.

• Cons: Some lenders have strict rules about this; check with your loan officer.

Option 3: The FHA 203(k) Renovation Loan

If the seller refuses to pay (because they are selling “as-is”), you can wrap the cost of the roof into your mortgage.

• How it works: You borrow the purchase price + the cost of the roof renovation in one loan.

• The Benefit: You get the house and a new roof with one monthly payment, rather than draining your savings account. Read more about 203(k) loans at HUD.gov.

Why a General Home Inspector Isn’t Enough

General home inspectors are great, but they rarely walk on steep roofs. They inspect from the ground with binoculars. They might miss:

• Hail damage from the storm two years ago (which might still be covered by the seller’s insurance!).

• Rotten decking under the shingles.

• Chimney flashing leaks.

Get a Quote You Can Take to the Table

If you are buying a house that needs a new roof, you need a hard number to show the seller. “I think it costs a lot” won’t lower the price. A written estimate from a licensed contractor will.

Don’t lose your dream home. Contact SNS Roofing today for a specialized real estate roof inspection and estimate.