Creating a Budget for Your Windows Project
It all begins with an idea.
It’s very exciting that you have a set a course to upgrade or replace your windows, and in doing so will be increasing the value of your home and saving on your utility bills. And while your conversations with your contractor are exciting, it’s important to find time to look at the numbers and complete the process of budgeting your windows project.
Creating a budget for a relatively costly home improvement project like a windows replacement installation can seem intimidating — you’re in the right place to find guidance on how to best manage and create a budget for your investment in your home. There are simple paths you can take to simplify and ease your journey.
Table of Contents
How Much Can You Afford?
What Is Your Home Equity?
What Is Your Credit Rating?
Be Real About Your Home Window Needs
Budgeting for Windows
Replacement windows are an investment for homeowners. Replacement windows can cost an average of $300 to $750 per window, depending on the window type and brand. Homeowners can find the best budget for their project by negotiating the final contract price and terms with a window contractor they trust. Further, it’s okay to expect the contractor to handle the bulk of the work in reducing costs before your windows upgrade project even begins—after all, one of their value propositions is expertise in the field and local knowledge about getting the most out of local, state, and federal rebates and incentives.
That all amounts to a big leg up.
At MyHomeProgram, we frequently speak to homeowners about their home improvement projects. Budgeting your project is stressful and we get that: The first step is to be sure you can afford this system you’re planning to install, based on factors like your cash flow, your assets, and what the return will be on your investment.
Enter the budget.
How Much Can You Afford?
It could also be lucrative to finance your own window replacement.
Calculate your income and your expenses, your needs and your wants, and find the figure of money you could theoretically put aside for an investment in your home. Your experienced contractor is one of your most important initial sources on how to best determine what that investment should look like from outside your personal goals—be sure to consult them for that piece of the pie but remember this is your project (and your money) so it’s okay to be a little selfish and somewhat frugal to achieve your ends.
What Is Your Home Equity?
If and when you decide to finance your own windows replacement, your home equity could play a pivotal role in everything from your loan amount to your interest rate. Simply put, your equity is the difference between what you owe on your home or property and the appraised (or market) value determined for it.
The more of your mortgage you’ve already paid, for example, the higher your equity in the given property. And the more equity you hold in your home, the more powerful you are as a borrower, especially when it comes to purchasing power, or the financial ability to buy (or purchase) things.
What Is Your Credit Rating?
From your credit score to your existing savings, purchasing power, and other ongoing loans, various financial institutions will have slightly different scales by which to determine your eligibility for a home improvement loan. And while some programs are certainly designed to be on your side—like the HomeStyle Energy Program or the Title I Property Improvement Loan—you’re going to be paying back in some way.
One of the most significant markers of your financial health—as determined by financial institutions, anyway—is your credit score. Plainly put, a credit score “predicts how likely you are to pay back a loan on time,” according to the Consumer Financial Protection Bureau. Companies use proprietary scoring models to calculate your credit score based on information from your credit reports, which essentially break down your “credit activity and current credit situation, such as loan paying history and the status of your credit accounts.”
Knowing your credit rating and how you’ll be considered as a borrower will go a long way in helping you determine how much you can afford as you budget for windows.
Be Real About Your Home Window Needs
When surveying homeowners, we often hear that ahead of a windows-related home improvement project, people are often misinformed about how to determine what they should focus on like window styles, frames, siding, and so on. Not to mention, the windows market is a wide one and includes many common names and brands you might trust for other products — take some time to familiarize yourself with the best window brands out there.
You likely already have a solid idea of what this project will entail based on what your contractor has shared with you. And while their goals might be completely in your favor and aim to maximize the increase in your home value, they might not necessarily align with your personal goals. Be sure to communicate your own priorities with your contractor.
It all comes down to trusting a contractor—and that also means a contractor trusting you. The more upfront you are about what you want to do and your financial limits, the better a contractor will be able to hone in on the best type of budget to build for your windows replacement, upgrade, or initial installation. It might not result in the pie-in-the-sky home improvement or exponential home value you dreamed of, but it will result in the best value you’ll get for the money you’re able to invest.
5 Types of Roofing Shingles
It all begins with an idea.
It’s important to consider the pros and cons of several different types of roof shingles and the relative cost of each roofing material, as well as consult with a local roofing contractor to determine which shingles work best for your house and in your part of the country. Here’s a look at some commonly used roofing materials:
1. Asphalt shingles
Generally the most frequently used, asphalt shingles are relatively inexpensive. Plus, if you purchase coated asphalt shingles, they may meet the Energy Star standards for a cool roof and earn you a rebate. Three-tab asphalt shingles are thinner and slightly less expensive than laminated or architectural asphalt shingles. And though they tend to be less expensive, asphalt shingles have a relatively short life span of 20 to 30 years.
2. Tile shingles
These shingles have a unique appearance characteristic of the Southwest states and colonial Spanish architecture. Tile shingles are some of the most expensive to purchase and install, but also are one of the longest-lasting and durable materials on the market, lasting more than 50 years. However, The National Roofing Contractors Association cautions that some homes might not be able to structurally support the weight of tile shingles.
The cost of replacing your roof will depend not only on the roofing material but also on the roofer you hire. Look up reviews and recommendations for service providers in your area. Call several of the reputable roofing companies and request a quote for the roofing materials you are considering.
3. Metal roofs
Appropriate for homes with especially flat or steep rooflines, metal roofing can either be solid metal or constructed metal shingles. Low-end galvanized metal roofs are relatively inexpensive, but can last up to 50 years. Metal roofs are becoming a popular option in many areas of the country. Once seen largely in the Northwest and Rocky Mountain regions, metal roofs are making an inroad into the Midwest and southern United States.
4. Wood shingles
More expensive than asphalt, wood shingles are known to be more aesthetically appealing because of their natural appearance. If you choose a hardwood, such as cedar or redwood, the shingles should last at least 30 years and sometimes as long as 50 years.
5. Slate shingles
This material is especially popular in the Northeastern portion of the United States, because the slate from which the shingles are made is quarried there. These shingles are extremely durable, with a life span of up to 50 years. With proper mainteance, it’s not uncommon to find old farmhouses that are leak-free and still have their original slate-shingled roofs. If your budget doesn’t allow for real slate shingles, you can always consider a synthetic slate product, which has a similar appearance, but a slightly shorter life span.
7 Warning Signs You Need a New Roof
It all begins with an idea.
Is it time to repair or replace your old roof? Look for these red flags before calling a roofer.
Most homeowners figure they need a new roof after they spot a leak in their ceiling. This leak could be due to many different roofing problems. But, what factors really determine whether a roof repair will solve the problem or the house needs a roof replacement?
Here are some tips to help you determine if you need a new roof:
1. Roof age
How old is your existing asphalt shingle roof? Most experts agree that a typical roof will last between 20 and 25 years. It also depends on whether the old roof was removed and you only have one layer of shingles, and if it is properly ventilated. If the roof was installed over another layer or several layers and it is older than 20 years, chances are you need a new roof.
2. Shingles curling and buckling
Shingles that are curled or buckling are another sign that you may need a new roof. Look at the slopes of your home that get direct sunlight and if you notice the shingles are curling and losing granules, it could mean the shingles are past their life expectancy. There could also be a possibility that the roof is defective. Contact a licensed roofing contractor to see if you could be eligible for reimbursement.
3. Roof valleys
If your roof shingles are falling apart or missing in this area, it’s a definite sign you need a new roof. Valleys are one of the most important areas of your roof. Snow and rain flow through valleys and into gutters. If the valley is compromised, you could be susceptible to roof leaks.
4. Missing shingles
These are another sign your roof could be failing. Check to see if all of the shingle “tabs” are intact.
5. Chimney flashing
This is another area to be concerned about. If your flashing consists of roof cement or tar, it may need to be replaced with a long-term, water-tight fitting, which would be a metal flashing system.
6. Shingle granules in the gutters
Look in your gutters to see whether they are loaded up with shingle granules. Roofs tend to lose more granules toward the end of their life cycle. The inconsistent or darker color on some parts of the roof is another sign the granules have worn away.
7. Daylight through the roof boards
You notice a spongy feel or trampoline bounce when walking on the roof, which means the underlying decking is weakened from moisture. Check your attic to see if there is any daylight coming through the roof boards. Also, check for moisture in the insulation.
How Do Home Updates Affect Resale Value?
It all begins with an idea.
Over the course of eight years, Suzanne Varghese of Boston estimates she and her husband invested about $44,000 to update and maintain to their Boston home.
The couple hired Bert Murphy Construction in Milton, Massachusetts, to install central air conditioning to replace window units; to build an electric fireplace with a marble surround, an eye-catching main feature on the first floor; and to refinish hardwood floors on the second floor, along with other fixes and upgrades. “We wanted it to be nice, obviously for ourselves,” Varghese says. But, she adds, they also wanted to increase the value of their home, set in the city’s established South End/Back Bay area. In May last year, the home sold for their asking price of $1.1 million, easily clearing the amount they invested, Varghese says. “Whatever we did was good for us and good for selling. It was definitely worthwhile.”
In addition to personal taste and comfort, for many, remodel decisions come with the expectation of improving a home’s resale value. But experts say not all updates are created equal and not all neighborhoods or markets will reward you for the money you sink into your not-so-humble-anymore abode. “I’d advise caution,” says appraiser David Roberts, based in Columbus, Ohio, of approaching an update with an eye toward raising the resale price. Roberts recounts upset homeowners screaming at him over the phone because an update didn’t add significantly to the value of their home, as they believed it would. “I’m not saying, ‘Don’t do it.’ I’m not saying, ‘Do it.’ I’m saying, ‘Let’s do some research,’” he says.
Realtors, appraisers and remodelers advise focusing on the type of update, where certain improvements big and small tend to return more on the original investment, such as a wood deck addition or garage door replacement, versus others, like a sunroom addition or home office remodel. But even more significant, construction and real estate experts say market factors usually play a leading role in dictating how much value a remodel might add to your home. So it’s important to look at comparable homes in your area to gauge the potential return on your investment.
Remodel to the market
You can “over-improve” a home beyond the value of other homes in the area, says Realtor Petra Richardson, with Home Team of America, in San Antonio, Texas. “You need to rely on your Realtor to give you comps,” otherwise known as a comparative analysis, she says. Roberts adds that you can check listings through your county auditor’s office or Multiple Listings Service Listings at MLS.com.
Robert Criner, vice chair of the NAHB Remodelers, which represents the interests of the National Association of Homebuilders’ remodeling industry members, says as real estate markets have improved of late, so too has the value of individual remodels. That’s especially true in hot markets such as San Diego. “If you’re in an area where values are rising, it will increase the value of your remodel,” Criner says.
The flipside holds true as well. “If you’ve got a declining neighborhood and your house is already average or better, that’s a scenario where I wouldn’t dump a dime into that property because you’re not going to get any more money out of it,” Roberts says.
If you want that new bathroom — or need that new bathroom — by all means go for it, but with the exception of mostly smaller changes, experts say it’s typically not worth making an improvement if your sole aim remains boosting a home’s resale value. “The front door is about the only thing you get your buck back for, if you spend it,” says Jean Wedemeyer, a Realtor with The Charles Reinhart Company in Ann Arbor, Michigan.
From the front door to the back deck
Dollar for dollar, a report published by Remodeling Magazine in January 2014 found entry door replacement — using a steel door — returned 97 percent of the original cost in added resale value, according to national averages, the highest of any update featured. Garage door replacement, a wood deck addition and minor kitchen remodel also returned more than 80 percent, according to the report, which found homeowners recouped only about half of their investment for sunrooms and garage additions, and a little more than that for a master suite.
“Just about any remodeling you do is going to cost you more than it’s going to add value to the house,” echoes the NAHB’s Criner, founder of Criner Remodeling in Newport News, Virginia. “Some of it’s close and a lot of it’s necessary because you have to maintain the house,” he says.
Service providers interviewed by Angie’s List tended to estimate lower average returns than those cited by Remodeling Magazine’s corporate-sponsored “Cost vs. Value” report, and all stressed the importance of doing updates to a home because that’s what a homeowner wants, not for the promise of a huge return at some distant date in the future. In addition, experts advise addressing deficits first, such as modernizing an outdated electrical system. “That has a lot of value, especially in the Boston area where a lot of homes are pushing 100 years or older,” says Emanuel Coehlo, owner of Innovative Contracting Services in Cambridge, Massachusetts.
Coehlo’s company repairs and updates properties and provides estimates for Realtor Christine Garabedian, principal broker for Garabedian Group in Cambridge, Massachusetts. The company represents buyers and sellers on commercial and residential real estate transactions.
Small changes make a big difference
Coehlo and Garabedian put exterior improvements, such as replacing old vinyl siding with fiber cement siding, high on the short list of best-bang-for-buck improvements.
As other experts emphasize, they advise paying special attention to simple, unflashy fixes, regular maintenance, and touchups, like repainting a home in neutral colors and sprucing up an entryway if prepping a home for sale. “A fresh coat of paint always goes a long way,” Garabedian says.
Besides possibly moving the needle on price, real estate agents and contractors say updates serve another purpose related to moving a home, too. “You will sell a home faster if all the improvements are done prior to putting it up on the market,” says Jim Tegge, owner of Home Crafters Building & Remodeling in Glenshaw, Pennsylvania. That includes updating those old, drafty windows, he says.
Still, appraisers like Roberts urge a chaste approach that takes any suggestions from real estate agents to make big improvements with a mathematical grain of salt. “Anything minor that needs to be fixed, for God’s sake if it’s 20 bucks from Lowe’s, go fix it,” he says. So-called “deferred maintenance” turns off prospective buyers, he and others say. Even so, most advise against undertaking big remodels right before a sale unless a home has serious issues. “Kitchens and bathrooms are two things that sell a home,” Tegge says. But if they’re in decent shape, he says, it makes more financial sense to leave them as is, rather than undertake an overhaul.
Home improvement for the current homeowner
For most, renovations amount to enjoying the change while in the home, with a secondary hope of someday benefitting from the investment when selling in the future.
But a big return on the cherry wood butcher block counters and other improvements would prove the equivalent of the cherry on top of the enticing kitchen remodel member John Revitte and his wife Stacy of Whitefish Bay, Wisconsin, recently undertook in the space original to their 1939 Georgian Colonial. “It was so outdated,” he says. “This isn’t a kitchen just for show. My wife and I do a lot of cooking.”
For about $36,000, the couple hired Home Pride Remodeling in Milwaukee to replace vinyl flooring with tile, put in new countertops, remove wallpaper, add paint, replace cabinets, redo plumbing, and upgrade the electrical system to support new appliances in the kitchen and throughout the house. Add to that a few small touches: “Subway tile backsplash with glass accents [and] motion sensor faucets, which is really nice. If your hands are dirty with chicken, you don’t have to touch anything,” Revitte adds.
A follow-up assessment of the house, prompted by the kitchen redo which required going through the permitting process, didn’t result in an increased valuation of the property or higher taxes, he says. And the couple has no current plans to sell. But Revitte hopes that if they do in the future, they’ll still recoup more than their investment.
“We would showcase the kitchen,” he says, seeing the updated electrical wiring as an added selling point. For now, it’s a great place to work alongside each other preparing food, or to enjoy a meal together to start the day.
“It’s a place that we’re proud to be in,” he adds. “It’s been almost a year since we finished the project and we still love to have breakfast in there.”