You’re looking for ways to maximize the value of your DFW home. Some window retailers claim that new window replacement can practically pay for itself in energy savings and property value support. Other sources paint a different picture. What is the true ROI of new residential windows?
At ZINTEX Remodeling Group, we’ve enjoyed over two decades of customer satisfaction in part because we don’t make false claims. Read on as we share the data we trust most and why the ROI of window replacements is more likely to fall in the 60-70% range.
Table of Contents
- What the Data Says About Window Replacement ROI
- Window Replacement ROI for Owners vs. Sellers
- What Factors Impact the ROI of Window Replacement Costs?
- When Should ROI Be the Priority of Home Improvement?
- Signs That New Windows Are Worth the Investment
What the Data Says About Window Replacement ROI
First, let’s take a look at some of the data compiled by various real estate experts. It’s important to consider not only the percentages each source has arrived at, but any additional information they provide about those percentages.
|
Real Estate Expert |
Estimated Window Replacement ROI |
Notable Differences in Measured Data |
|
63%-67% |
The low end (63%) applies to windows with wood frames while the high end (67%) applies to windows with vinyl frames |
|
|
50%-75% |
This range incorporates returns resulting from factors like energy savings |
|
|
70-85% |
This range seems to over-adjust the ROI for add-ons that would also increase initial costs |
As you can see, there’s a pretty big difference between JLC’s estimate and Angi’s. This is in part because JLC is looking solely at the value new windows retain upon resale. Angi and Realtor are looking at both resale value and the financial benefits homeowners can enjoy while still living in the newly renovated property.
That said, Angi makes the claim that by picking premium features (e.g., choosing triple-pane glass over single or double-pane glass), you’ll see a bigger impact on property value. While it may be true that premium windows could hold more value for buyers, they’re also going to cost you more money upfront. In the end, premium features would probably still result in a 60-70% ROI.
Assessing Window Replacement ROI for Owners vs. Sellers
Let’s talk a little bit more about that discrepancy between ROI upon resale versus a percentage that accounts for homeowner savings. The latter is going to incorporate the replacement window ROI of:
- Energy savings: new windows can reduce residential energy consumption by up to 13%
- Reduced maintenance costs: new windows theoretically shouldn’t require repairs for several years
- Non-warrantied repairs: depending on your installer, damage or operational defects may be covered by your warranty (meaning that repairs are free of charge)
The ROI of reduced or warrantied maintenance isn’t as easy to calculate as potential energy savings. This is part of the reason why, at ZINTEX, we tend to rely on the more conservative ROI estimate offered by JLC. While it certainly sounds more appealing to say your replacement windows will recoup 80% of their cost, there isn’t enough data to support the claim.
What Factors Impact the ROI of Window Replacement Costs?
ROI data typically represents the maximum return homeowners are enjoying. In other words, your new windows may yield less than the 63-67% reported by JLC. The top factors that impact window replacement ROI include materials, designs, and the overall value of your property.
Window Replacement Materials and Designs
You may have noticed that JLC lists a 63% return for wood windows and a 67% return for vinyl windows. This is because the materials you choose make a huge difference. In addition to frame materials, you’ll need to consider:
- Inert gas fills: when added between the panes of your windows, gases like argon or krypton improve energy performance by reducing heat transfer
- Pane coatings and glass finishes: upgrades like tempered glass can increase window safety by making windows shatter-resistant
- Operational designs: functional windows improve natural airflow and temperature control options
Basic upgrades, like vinyl frames rather than wood frames, are more likely to increase the actual percentage value of your ROI. As we mentioned earlier, some premium upgrades (like tempered glass) may provide a bigger boost to your property value, but the increased cost upfront may mean the ROI remains comparable.
The Overall Condition and Value of Your Property
The ROI of any home improvement is going to be at least somewhat reflective of the overall condition of your home. It’s useful to think about how valuable new windows will be to a buyer in relation to how valuable your property is before you install new windows.
For example, consider a property with windows that were installed a decade ago. The seals are not worn down yet. The materials, while not completely on par with today’s options, still provide decent heat resistance and insulation. They don’t align perfectly with the house’s style aesthetically, but otherwise, they’re functional.
In this case, installing new windows probably won’t have a huge impact on the property value, because the old windows weren’t dragging the value down.
On the flipside, imagine a property that needs a lot of work. In this case, you may want to focus on areas of the home that tend to yield a higher ROI, such as the kitchen and bathrooms.
New windows will improve the value, but buyers may still look for buyer credits and concessions to address other problem areas in the home.
When Should ROI Be the Priority of Home Improvement?
If you’re picking home improvement projects based primarily on how much they’ll recoup on the market, you may want to consider high-yield options. This includes alternatives like new garage doors, kitchen upgrades, and bathroom remodels, all of which have an ROI of 70% or higher.
ROI should only be your top priority if you are:
- Flipping a property
- Trying to maximize the appreciation of your current property
- Making changes based entirely on buyer interests, rather than your own use or preference
If this sounds like you, you may want to invest in lower-cost window repairs and high-yield renovations, rather than new window replacement.
Signs That New Windows Are Worth the Investment
New windows are worth the investment if:
- Your current windows are increasing energy waste or decreasing home security
- Your current windows are beyond repair
- You’re planning on reaping the long-term homeowner benefits of new windows in addition to the property value boost
- Your windows are the only thing that could use an upgrade before listing an otherwise turnkey, modern property
Ultimately, the best way to enjoy the return on your investment in new windows is to install them in a home you’ll be living in for at least a few years before putting it up for sale.
Can ZINTEX Install Your New Windows?
New windows probably won’t pay for themselves for most homeowners, but that doesn’t mean they aren’t a good investment. This is especially true if you plan to stay in your current home for a few years (or longer) before putting it up for sale.
You know that ZINTEX can provide bathroom remodeling services. Can we install your replacement vinyl windows? In DFW, we can. Find out more in our guide to ZINTEX window installation services.
