Home improvement projects have been a reliable way for homeowners to improve their quality of life while investing in the value of their home. However, with the current state of the housing market, it's important to know why a project might be profitable. Otherwise, you run the risk of making a choice that will end up as a loss.
Replacing your home's windows is a fantastic way to combine an increase in a home's equity with a monthly savings. An understanding of just how they create this value is critical when deciding to take this project on yourself.
Arguably the most obvious way that replacement windows create value, energy savings are an important factor to consider. Experts estimate that replacing single-pane windows with modern designs can save you as much as $426 dollars every year. Generally speaking, climates with extreme temperature swings tend to see the most savings from new windows, while stable, comfortable climates tend to see less benefit.
That said, replacing a single window can cost $250 or more. Replacing every window in your home can easily turn into a five-figure bill. If energy savings were the only way that this project paid a return, you'd be waiting decades to break even.
Homeowner's Insurance Savings
An often neglected cost to homeowners every month is insurance. Embedded into most mortgage packages, homeowner's insurance can cost a significant amount of money. A good way to lower your premium is to increase the security of your home.
Replacement windows often come with effective window locks. This makes it more difficult for a would-be burglar to gain access to your home. As a result, you're less likely to file an insurance claim--and companies will sometimes lower your premium by as much as 15%. On a $100 per month policy, this would yield you an extra $120 every year.
Quite a few people turn to home improvements when they're looking to sell their home. In those situations, monthly savings won't add up quickly enough to turn a profit. Fortunately, replacement windows yield an immediate increase in the sales price of a home. On average, home sellers see a 77% return on their investment when the house is sold.
If you're good at math, you'll notice immediately that a 77% return means a 23% loss. This is absolutely true. However, what isn't reflected in that number is the likelihood of a buyer paying top dollar for a home with old, run down windows. Also, every month that you stay in your home while you prepare to sell will yield significant monthly savings as well.
A less quantifiable factor in the home improvement profit world is curb appeal. Homes that appear well-built and impressive from the outside tend to command higher prices than other similar homes. They're also more likely to maintain a high asking price through the negotiation process. This is one of the most important ways that new windows will put money in your pocket.
New windows will fit tightly into your home's facade. They'll add to the overall feeling of craftsmanship and quality that people get when they notice your home. On top of that, prospective buyers will notice how easily they open and shut when touring your home. It might be difficult to place an exact price tag on these benefits, but the benefit is definitely there.
When adding up all of these benefits, it's easy to imagine situations where replacing your windows will make you money in the end. Whether you're in your forever home or looking to sell soon, it's rarely a bad financial idea to put new windows in your home.Share
15 January 2015
When was the last time you really looked at your roof? I had no idea how important yearly inspections of my roof was until I found myself footing the bill for a full roof replacement and interior ceiling replacement. Since then, I have learned how to inspect my own roof twice each year. I always inspect it each spring after the harsh winter elements have gone away and again in the fall before winter weather sets in. You can use the information compiled on my website to inspect the roof on your home and make the small repairs that will save you from full roof replacement.