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Will replacement windows really increase the value of your home?

on Wednesday, 03 October 2012. Posted in Gravina's Blog

I've been reading various sites and have come across many that claim window replacement increases the value of a home. One of the sites even said that replacing your windows could increase the value of your home by 20%. That's adding $40,000 to a $200,000 house. What? Clearly this website was exaggerating, but I did conclude that replacement windows do, in fact, add value to your home.

Windows are thermal holes. On average, a house may lose around 30% of its heating energy through its windows. Often times, the heat that is circulating through a home is lost by poor insulation and older, degraded windows and doors. Modern replacement windows are insulated and have specific energy ratings so the homeowner knows just how much insulation to expect out of their investment. The energy ratings take into account the window frame, panes of glass, and their ability to resist air leakage and prevent heat loss. When you buy energy efficient replacement windows, you immediately save money because the energy savings alone make your home more valuable.

I also decided to ask around the office to get the opinions of who I would call "window experts". Here is what our window experts say about the value of replacement windows.

  1. If you spend $10,000 on replacement windows and decide to sell your home, you are likely to get about 70% of that back. It would be unreasonable to increase your home's price by $10,000 if you decide to sell. But you could possibly tack on an extra $7000 to your selling price.
  2. Say you spend $4,000 on heating and cooling costs every year. If you replace your windows with more energy efficient window, you will likely save about 20% on your heating and cooling bill. That is $800 back in your pocket. Essentially, that is like saying that you will have bought back your windows in 5 years by replacing your windows.
  3. If your home has out dated windows, it is likely someone will want a discounted price for the home in order to put new windows in. It is a better idea to buy replacement windows before you sell your home so a potential buyer doesn't bid ridiculously low. For example, say your bathroom window needs to be replaced and a potential buyer notices that. He or she may make an offer for $10,000 less than the asking price when really, that window may only cost you $1,500. Plus, if you have recently replaced the windows in your home, it is much more appealing to a potential buyer.

So the answer is YES-replacement windows really do add value to your house. They will add both monetary value and non-monetary value such as improving the overall look and feeling of your house.  Windows still have the highest ROI for home improvement projects.  See for yourself with the 2015 Cost Vs. Value Report form below.

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