Do new double pane windows increase value?

[Brian Weaver]

I enjoy watching programs like "Flip This House" where they'll say that the H.O. spent $12,000 replacing windows (Value in the Market = $22,400...or some such nonsense)

They never say HOW they figured that out...but it must be the case. Its on TV.

 

[Lee Lansford]

"I have THE answer! I have THE answer!"

Ready?

"It depends...!"

Are the new windows going into a 60-yr. old house with 60-yr. old windows...in a neighborhood where the older stock of housing is being renovated and housing prices are on the rise?

Or, are the replacement windows akin to silk stockings on a sow?

Be it windows...or an updated kitchen...or, just new paint on the inside of the house...it always does "depend", doesn't it?

Some years back I taught the basic "appraisal principles" course at the local community college. I think that I must have frustrated many a would-be appraiser with that exact response to many a question: "It depends...".
It's not a cop-out, it's just the truth.

 

[Alisa]

Well, my husband and I replaced "just our windows" -- did the work ourselves. We used retrofits that you pop in (not as easy as that sounds) but really not that hard to do. We also saved a bundle of money that way. I think you have to look at each house on a case by case basis and
not generalize too much.

Kitchen cabinets, counters and tile is next....I don't think that will be as easy.

 

[Alisa]

Brian, I watch those shows too...I'm always amazed at the value they
supposedly get for such slight improvements. It's funny. Have you
seen "Flip this House - San Antonio" ?? Two brothers, boy, they can
be mean. Still like it though...LOL...

I enjoy watching programs like "Flip This House" where they'll say that the H.O. spent $12,000 replacing windows (Value in the Market = $22,400...or some such nonsense)

They never say HOW they figured that out...but it must be the case. Its on TV.

 

[Smokey Bear]

You put those vinyl dual paned puppies in one of our Victorians and the value will go DOWN! People that deface Victorians need to be shot.

 

[jdbiggers]

I have yet to find sales in which a home which has switched out single pane for new double pane windows has increased in value despite the $10000+ cost. It seems to be more of a trade off between the cost and the lower energy cost. What have you all seen?

$10,000 Cost!!! My Lord, what part of the country are you in. I did my windows myself for under $1,000 (8 windows, most 6040 and a couple custom made 8 footers and all with divided lites). My parents hired someone to do their on a house with two more windows (essentially the same house with a garage conversion of two more windows) and they only paid $1,300. I had nicer Pellas, while they had some unknown brand but still good quality.

Nevertheless, I have clearly seen evidence that the increased appeal factor alone has more than returned the costs in most cases, but at least returned cost.

If I hadn't of observed this, I would never have done it. In Tucson, the additional 2.7 R-rating is somewhere between meaningless and worthless. Here, the value is in the appeal factor because, let's face it, the newer windows are OBVIOUS signs of improvement, giving the buyer the impression of a renovation value and one less thing that nees to be done.

JD

 

[Tim The Enchanter]

Newer dual pane windows are one of those things that adds up. Along with stuff like copper plumbing, newer roof, updated electric, HVAC, etc, yadda.

 

[Brian Weaver]

Alisa,
Haven't seen that one. Would love to see them tackle some dump in Chicago. Maybe they have and I missed it.

When I watch those TV rehabs...they mostly seem to be in California. Some dump is purchased for $600,000...they put in $75,000 in repairs and upgrades...then sell it for $902,000.

I did an appraisal last summer for a rehabber. The house was a neglected raised ranch in a suburb of Chicago. On a good day this house would fetch $250K in just yuck-yuck-yo condition.
There were over $80K in needed repairs. The rehabber really had to noodle this one to see if it was worth doing. The owner wouldn't take a penny less than $165,000. Very slim margin. No crazy profits at the end of this story. I guess it wouldn't make a great TV show.

 

[Elliott]

Let's think about this....your using "replacement cost new" in your
cost approach....which probably assumes those new vinyl windows.
So if you appropriately apply effective age, then it should be accounted for in
your depreciation estimate in the market grid and CA(provided its
applicable).

But you want a point estimate (why, I don't know, because all
appraisers are good for is market value of the fee simple
interest in the real property)....but anywho....so you could
figure out the depreciated cost difference between the old wood
or anodized windows and the new vinyl/doubles....then discount
it in accordance with other long lived items in the house (not to
be confused with the short lived components). That would be
its "cost" contribution. I imagine the market would appreciate
that the previous owner went through the effort of installing new
windows. I forgot, what was the question? Or you could use
paired sales.

Elliott

 

[xmrdfghap]

Greg your point is well taken and logically that would follow. In fact friends installed new windows in the new neighborhood and added a bay window for about $5000 and did nothng else. I have been in countless homes with new windows and no other upgrades. The neighborhoods I see this there is usually one choice windows or upgrades not both. Thats what I see.

I am not saying it doesn't happen, I just don't feel it happens often enough to establish a market trend that can be cited. And far too many such upgrades are like Alisa Anne's "Kitchen cabinets, counters and tile is next...."