R.Townley Roofing

R. Townley Roofing wants to be your roofing contractor!

Phone: 209 472-0400

Fax:     209 472-0405

E-mail: estimating@rtownleyroofing.com

To contact us:

Formulas for comparing replacement and repair cost of shakes Roofs

 

A) Establish cost per year for roof:

             Replacement cost / Average life span with variables to extend life =              cost per year.  Use the following variables in calculations:

1. Pitch: steep roofs = add 2 years

2. Roof has been treated at least once = add 3 years

3. Heavy shakes installed = add 3 years

4. Exposure is 8” or less with 24” shake = add 3  years

Average roof life for a medium shake roof is 18 years.

 

B)         To establish the value left in your roof:

             Multiply cost per year times number or remaining years to establish              the dollar value left in the roof.

             (A 15 year old medium shake roof, steep)

             Average life span (18 years) - Ave of roof (15) remaining life = 3              years

             Add for steepness:                                                                      + 2 years

             Expected remaining lifespan:                                                     5 years

             Cost for replacement = $10,000

             $10,000/lifespan of roof (20 years) = $500/year annual cost

             Remaining lifespan (5 years) x yearly cost $500) = remaining value              left in roof ($2,500.)

             This means there is about 25% of the life left in the roof.  Use this for              negotiation     purposes.  Perhaps a fair rule of  thumb is to meet the              buyer halfway on the roof and offer 50% value.  The listing price              might be adjusted accordingly before the house goes on the market              so the seller can make adjustment when negotiating.

 

C) Establish cost per year for repairs:

             Cost of repairs/number of years the repairs are expected to add to              roof life (beyond average = cost per year for repairs.

 

D) Repairs vs. Replacement:

             If the cost per year for repairs exceeds cost per year for replacement,              might consider reroofing instead, taking into account opportunity              cost as described below.

 

E)         Opportunity Cost:

             Money spent today on replacing your roof could be earning you              interest via investments.      Assuming a 7% return on     investment,              you can calculate the opportunity cost of replacing your roof as              follows:

             .07 x (Replacement cost—repair costs) = the amount of money you              are saving each year by replacing.

 

F) True Cost of Repairs vs. Replacement:

             Cost per year for repairs—opportunity cost = true cost for repairs