How expensive is too expensive for replacement windows?

[Nicholas Standford]

I have a townhouse built in 1968 with all original windows and im looking to upgrade. Im currently taking bids for th job which comes out to be 26 windows in total and im finding there to be a large swing in the quotes im getting. So far my lowest is $12,500 and my highest is $26. Ive done my reasearch so I know a ****** window when I see it but my question is, is there enough of a return on windows if I go with the higher wnd options?

[Kevin Sobilo]

@Nicholas Standford, I think we all wish there was a database where we could find the value increase from any given update. Unfortunately, there isn't. I tend to use a few ideas to guide my decision making when it comes to issues like this:

1. Will there be a difference in rental income? In this case I don't think a tenant will pay more or less depending on the quality of the windows. So, I don't think for rental income there is any reason to do more than the minimum. 

2. What is the difference with regard to property value? For that I would look at what is "usual" for the neighborhood/area. I think you will generally get the best return for what you pay by going with what is common for houses in nice condition in your area. If you go above that your return compared to what you spend typically diminishes. 

3. Value for your use? If you plan to hold the property a long time, your own use of the upgrade plays into the decision. If you are paying the utilities, then a more expensive super efficient window might make sense because you will be paying the utilities for the next 20-30 years. Also the durability is a factor if you plan to hold the property a long time. 

All of that said, most of the time a lower to mid grade product ends up working best for most cash flowing rentals, but there is no one size fits all answer.

You might also look for someone more like an experienced handyman to install. If I was installing basic replacement windows myself (which I would do) my cost to install 26 windows would be around $4500-5000. If I was hiring a good handyman to install I would expect the price to be around $6500-8,000. Even if the labor rates in your area are higher, I bet you can find someone who can do it for under $10k.