We talked about last October’s hail storm a few times in the fall, back when adjuster’s trucks were in everyone’s driveways and the air was filled with the sounds of nail guns pounding home new shingles.
Who am I kidding … it’s still a common sound now, nearly seven full months after mother nature decided to have some rare fun with the Phoenix metro area.
While it may seem like a universal ballad, there’s a set of homes here in the Phoenix area that never have been visited by an insurance adjuster; if a roofer has come by, it’s only been to take a quick look and say “yep, that one needs to come off” and pass the info down the line.
These, of course, would be the Valley’s bank owned homes. Anything owned by the bank when the storm hit almost certainly has hail damage to some degree to the roof and, quite possibly, the air conditioning unit if it’s located on the roof (the norm before the early 1990s here in Phoenix.) This isn’t to say all do, but most.
Here’s the fun part … these homes are selling with the roofs as they are and as they sell they become legitimate comps for other homes in the neighborhood. So soon, the market value you see for an area with multiple bank owned homes is a value taking into account a roof that’s going to need work.
In other words, if the lender prices the home at the same level as other homes that also needed roof repair, a buyer shouldn’t expect the lender to lower the price because of a roof issue because the comparable sale also is a home with roof issues.
For a shingle roof, repairs are going to run from a few thousand to over $10,000 fix. There are variables such as the square footage and the current number of shingle layers already on the roof. Arizona law allows one layer of shingle to be laid upon another and a maximum of two layers are permitted.
So if there’s a roof already with two layers of shingles that was dented, bruised or just plain beat up during the hail storm, the roof has to be scraped to the plywood and redone. If there’s only one layer, the roofer can lay a second layer on top, saving some cash.
These roofs are going to be a fact here in the market for a while to come, at least until the homes foreclosed on before the first week of October work their way through the system and are sold to a new owner. So if you run into such an issue, particularly in the sub-$100K market where shingle roofs are the norm, don’t be surprised.
You were told, assuming you’re a reader here.