Economic Benefits of Commercial Window Upgrades

The real estate market these days is so complicated. Almost every day someone adds something new to make it even more confusing. Everyone thinks, or at least claims, that they have the best ideas on when to buy, when to sell, how to market and what the perfect pricing formula is. With so many experts in the field, so many claiming to know all the answers, so many saying that their way is the right one, one thing should stand out, and that is that absolutely everyone can’t be right, right?

With the high speed accessing world we live in today, the information glut is so vast that it’s almost impossible to fathom. Yet there is one point of contention that 90% or more of all the so called experts will agree on. No other point in the entire real estate market place is so widely agreed upon among buyers, sellers, analysts, brokers and realty companies, and that is that when selling older properties, like no other single thing, investing in new replacement windows, adds to the value and saleability of a property. Statistics at one time showed that new replacement windows, could add 22% to the value of a property. Though that figure might be rather inflated today, it’s more in the realm of 10 to 12% in today’s market place.

Beyond that, new replacement windows add inherent value by way of making a property more attractive, from a maintenance stand point, to prospective buyers, and possibly there by decreasing the amount of time it remains on the market. That can be substantial savings considering interest rates and other costs involved with lengthy selling times.

Ponder that thought for just a moment. Although the increase in actual dollar value isn’t what it once was, there is still plenty of good reason to consider replacing older windows on both residential and commercial properties. If 10% of a properties value is spent on replacing windows,(a very common percentage) and a minimum of that same 10% is added to the properties FMV or Fair Market Value, some might consider that a wash. But is it really? Consider the inherent value that replacement windows add in the way of more buyer appeal and less time on the market. Like was mentioned before, there is a lot to be considered, and the bigger the project the more consideration the project should be given.

Just to throw out some figures to make a small illustration. If the property were a $500,000 commercial property and the replacement of windows added no actual dollar value upon appraisal, it might still be a win situation, depending on the financial status of the property. Things to consider would be if it still has money borrowed against it, tax payments and maintenance upkeep, especially if the property is vacant, it may well be a substantial savings in over all costs if the added inherent value of replacement windows makes for a speedy sale.

Adding new replacement windows, there could very possibly end up being a 10% or even more savings in costs related to a property, especially commercial property. Residential properties work much the same but may not realize as much in overall cost savings, but typically see more increase in actually FMV.

One more reason to consider replacement windows is that people are very energy conscience these days, with the price of gas at the pump pushing over $3 a gallon and heating oil , propane and natural gas on the rise. Replacing old leaky windows with new energy efficient windows makes good economic sense no matter which end of the real estate market a person happens to be dealing from

It might be mindful to mention that there are some dos and don’ts involved with new replacement windows. For best results, always use quality windows, ones that add to the look or to the functionality of a property, as well as ones that employ money saving energy efficiency. When considering a contractor, check references, and ask to view previous properties where work has been completed. The best advice, when more then one or two windows are involved, seek out a professional, because a job gone bad, can be more costly than what the most expensive contractor might have charged.