Like most – or at least many -- states, Pennsylvania is facing serious economic challenges in 2011. Every day there’s news about state cuts or budget problems in one area or another. So I was surprised to read that there’s still a state program in Pennsylvania to help consumers purchase energy-efficient product and/or make energy-efficient home improvements.

The program I read about is called the Keystone HELP (Home Energy Loan Program), and is supported principally by the PA Department of Environmental Protection, Pennsylvania Treasury Department and the Pennsylvania Housing Finance Agency. It allows eligible residents to get low-cost loans for purchases of things like high-efficiency Energy Star qualified windows and doors, insulation and heating and air conditioning systems. Interest rates for consumer loans through the program are as low as 2.99%.

Although I do feel that any Pennsylvanians considering energy-efficient home improvements should at least look into this program, I’m not endorsing anything here. I just want to make the point that there IS financial help out there. If it’s available in Pennsylvania, chances are there are similar programs in other states.

The other point here is this: The sooner energy-efficient improvements like installing Energy Star qualified windows or insulation are made, the sooner homeowners will see a payback in terms of lower home energy bills.

I recently read an interesting article from Forbes magazine—“Ten Best Home Renovations for the Money.” (There’s also a “Ten Worst” list for those who are interested.) The article used Remodeling Magazine’s annual Cost vs. Value Report to gauge just how much of their investment homeowners can recoup on various home improvements.

As you might expect, most renovation projects will not “pay for themselves”—meaning that homeowners generally will not recoup all of the money they spend on home improvements if they later sell their home. Some projects are just “plain dollar drains,” according to the article, and shouldn’t be undertaken for the sole purpose of increasing a home’s value.

The article recommends that homeowners who are going to shell out money on improvements should focus on the home's exterior because it offers more decent returns on investment. For instance, both vinyl replacement windows and vinyl siding were shown to recoup 72% of their cost upon resale.

Any homeowners who ars considering a home-improvement project might want to check out this best/worst list before jumping into a renovation—to ensure they’re undertaking renovations like windows or siding that provide amuch better value. The article is available at http://tinyurl.com/4rw95qd

As most window industry professionals know, attempts to extend the 2010 $1,500 Tax Credit on energy–efficient windows, doors, insulation and other home-improvements did not succeed. The legislation passed by Congress and signed by the president last week does include a tax credit, but only up to $200 for ENERGY STAR qualified windows and skylights and up to $500 for ENERGY STAR qualified doors for 2011. This is a far cry from the expiring $1,500 tax credit that is such a good thing in so many ways for consumers and the country. The fight for higher tax credits for replacement windows and doors isn’t over, however. Remodeling and window industry groups are continuing to press for new incentives in 2011. Rich Walker of the American Architectural Manufacturers Association (AAMA) sums up the situation nicely:

"Homeowners who are currently caught in the crossfire of depreciated home values and a lagging economy will be unable to make these important energy-saving purchases without the assistance of any substantive incentive …” To be sure, consumers have other things on their minds at this time of the year, but we all need to be on board with continuing efforts for new tax credit legislation in 2011. Anyone interested in voicing an opinion about re-establishing a stronger tax credit for retrofit windows and doors should contact their federal legislators.

An easy way to begin the process of contacting representatives in Washington is to visit www.house.gov and enter your zip code in the “Find Your Representative” search form in the upper left corner of the page, or to visit www.senate.gov and select your state from the drop-down menu in the upper right corner of the page.

How much does $189 cost me?

Every once in awhile I see those advertisements in the newspaper offering windows for $189. I have even seen some other price point window companies marketing windows for as low as $159!

But with those prices, as a homeowner, what am I getting? With my home being the most expensive investment that I am ever going to make, is $189 a good deal? Is it a good investment for my most expensive asset? What type of service can I expect? What about the warranty?

These are questions I ask myself when I see these advertisements. So what are the answers? Unfortunately, the answer starts with ‘it depends on what you want.’

First, those low cost windows are definitely available. And if that is what you want, the company advertising the prices is legally required to provide them to you. But I found that if you have an actual presentation, you end up paying more than the low advertised price of the window. Things like exterior and interior trim, coil, stops, high-performance glass all significantly add to the cost of the project.

As far as service and warranty, there is no all-encompassing answer that will be good for every low-cost provider. But from the documentation that I was presented with, to get service or a warranty fulfilled, don’t expect to just make a phone call and expect things to be handled.

So what should we as homeowners look for when choosing a home improvement company to do a project? Here is quick list:

1. References - 3 good ones and 3 bad ones - it’s easy to get the good references, but I want to know what happened when things didn’t go as planned, and this is why I ask for the bad references - I will take both the good references and the ‘not so good’ references with a grain of salt - but this will give me an idea of how good the company’s service is.

2. Better Business Bureau Rating - This is very simple to find, just go to BBB.org and follow the instructions - if the home improvement company isn’t part of the BBB, find out why.

3. How long has the company been in business? It’s ideal if the company you are going to do business with is part of your community. It’s also not necessary to choose the company that has been in business the longest but you definitely want a company with a successful track record

4. What products are your prospective home improvement company using - which manufacturers? Many times you can look up the manufacturers’ products on line and get a good education about the various options before you meet with prospective home improvement companies. You can also check out the manufacturers on various home improvement forums

5. Use the internet to your advantage - besides checking out forums, check out Angie’s List, Service Magic and the internet Mommy Groups in your area, and e-mail manufacturers whose products you are considering using - all of these sites will be extremely helpful in guiding you.

The bottom line is this: You need to feel comfortable with who you are going to trust your home with. You don’t necessarily want to short cut the process by going with the least expensive option available. Remember, your home is typically your most expensive asset. You want to make sure you are investing in the right home improvement company so your home investment will continue to grow.

One of the things we've been hearing from homeowners this year about purchasing replacement windows for their homes is NOT that they don't have the interest or intent to replace their old windows, but that they can't get the financing to buy them. This has been disheartening to many because if there has ever been a time to replace their old inefficient windows with new highly energy-efficient windows, it's NOW! We all know that heating and cooling costs continue to climb. And they know that the current $1,500 tax credit for replacing their windows will expire this December. Having energy-efficient windows installed this year would allow them to lower their home energy costs immediately.

Just think about the frigid weather we had this past winter throughout most of the country. Think about the weather this summer -- it's been one of the hottest on record.

So, we all know that replacing those old windows makes perfect sense. But what if the banks aren't willing to finance a home improvement loan? While banks are starting to lend money, it continues to be a challenge for many. It may not be as available as we'd like it to be, but it's better than it has been in quite a while.

As a solution, many Gorell dealers also offer financing from GE Money, and we're pleased to now announce the addition of another finance programs from a solid and reputable financing company, AFC First. Both GE Money and AFC First specialize in home improvement loans for energy-efficiency upgrades. Gorell dealers have already begun to sign up with AFC First so that they can offer homeowners another source of financing, but please ask them about these programs when discussing Gorell windows and doors with them. With financing opportunities like these becoming available, we're confident homeowners will have the opportunities to have windows installed before the end of the year.

Too often we see and hear advertising that screams “Hurry! Once-in-a-Lifetime offer! This price will never be this low again!” And we become skeptical – because next month the offer is repeated and the price may be as low or lower.

The government’s ENERGY TAX CREDIT PROGRAM, which ends this December 31, 2010, should NOT be looked at in the same light. This program, which offers homeowners up to $1,500 to install qualified energy-efficient windows, is a really good one that probably will not be repeated because of our country’s growing debt.

Moreover, another huge reason for homeowners to take advantage of the program is that installing highly energy-efficient windows and doors LOWERS home energy bills – so it puts more cash in consumers’ pockets IMMEDIATELY once these products are installed. That’s besides all the other benefits, like easier maintenance and a more comfortable and more beautiful home.

What’s the catch? Well, it’s not really a catch, but it’s important for homeowners to know that — to get the tax credit — qualifying windows and doors must be INSTALLED before December 31, not just purchased! Some people might say, "But it’s a long way to the end of the year — There’s plenty of time."

Not exactly true. The problem is that it takes time for consumers to research products, meet with a home-improvement company, make decisions about product styles, colors and options and arrange for financing when needed. Then, the contract has to be executed, the measuring done and several weeks are needed for companies like ours to manufacture and deliver the windows or doors to the dealer. Lastly, the home-improvement company or contractor needs to schedule the installation, with new projects going to the end of the line.

The entire process easily takes months, and you can imagine that — as we get closer to the end of the year — the number of people recognizing the need to move on this tax credit opportunity will increase exponentially. I am 100 percent certain that a great many people who want to take advantage of the tax credit program will lose out because they waited too long. We saw it last year with a huge rush in orders at the end of the year. The difference is the credit lasted from 2009 through 2010, so the ones who missed getting products installed for year-end 2009 had the ability to still take advantage of the credit in 2010. Yes, they missed the credit for the 2009 tax returns, but at least they could take advantage of it this year. The credit is not scheduled to continue, and there is no talk in Congress to continue the credit. December 31, 2010, you either have had your windows and doors replaced or you lose the opportunity to save $1,500 forever.

I urge homeowners who need new windows and doors to start NOW, today, to ensure they beat the rush and get both the tax credit money, as well as all the other immediate benefits of having new windows and doors!

As Congress debates the details of the Home Star bill many people have asked the question of which federal program is better for them – Home Star or the Tax Credit program. Many consumers have delayed their buying decision until they learn whether Home Star will ever be passed and if so, what the final language will mean to them. As with most decisions like this, there isn’t a clear-cut answer. It really depends on your situation.

The American Recovery & Reinvestment Act of 2009 (ARRA) created a tax credit for homeowners who replaced their old windows with new energy efficient replacement windows. The tax credit allowed the homeowner to receive a credit of 30% of the window cost (excluding installation), with a maximum of $1,500. The money would come in the form of a tax credit on your tax returns. As with most tax credits, it reduces your tax liability. If you have no taxable income or tax liability that can be reduced, you wouldn’t receive a benefit. For the average working class person, this tax credit is a significant incentive and would increase their tax rebate or reduce their tax payment in April.

The Home Star Energy Retrofit Act of 2010 is a bill that is being debated in Congress now. It isn’t clear whether this will ever become a law or not. So, there is a risk is waiting to see if it gets passed because the tax credit program expires on 12/31/10. You don’t want to miss out on both of these programs. The draft language of Home Star proposes upfront refunds on energy efficiency upgrades to your home. This could include windows, insulation, water heaters, HVAC, etc. Replacing windows would potentially offer a rebate of $1,000 if 8+ windows were replaced (or 75% of the windows in the home). This $1,000 would be taken off of the contract price from the home improvement company who sells you the windows. They would then apply for a refund from the government. This is similar to the Cash for Clunkers program that car dealerships offered.

The program that is best for you depends on your individual situation. The pros for the tax credit are that it exists today and the rebate amount for windows is higher. Home Star, if passed, would provide a lesser amount for windows, but it would be upfront money. Home Star would also have the benefit of allowing you to do multiple efficiency upgrades at one time to allow for an even higher rebate. e.g. – You could replace your windows, add insulation to your attic and add a solar hot water heater. This might result in several thousand dollars in discounts, but you’d have a much higher investment cost to get those returns.

Regardless of which program you feel best suits your needs; you don’t want to pass up these opportunities because they won’t be around for long.

If you’re still considering replacing your windows in 2009, you may be finding that window dealers or home improvement companies are not as available as before to meet with you to discuss windows. This is actually not unusual, because traditionally November is a time when homeowners rush to replace their windows before the colder weather arrives -- and window dealers have more work than they can handle.

Compounding this situation this year are a few additional factors. One is pent-up demand and the improving economy. Many who waited because of lack of confidence in the country’s financial stability now feel they can make purchases with confidence.  Another factor is unquestionably the $1,500 federal Tax Credit program and the rush to purchase qualifying windows before year’s end.

A thing or two about the Tax Credit: One is that windows must be installed in 2009 to be eligible for the credit to be taken on your 2009 return. It’s still possible, of course, but it will be close if you’re ordering windows now. The other thing to remember is that you do have until December, 2010, to take advantage of the program.

The good news? If you do purchase windows now and they are installed in early 2010, you still win financially because you’ll save money with lower winter heating bills – and you still get the tax credit (although later).

How much should you expect to pay for vinyl replacement windows?  This is one of the most commonly asked questions from homeowners. Most potential window purchasers do spend time researching windows before buying, but unfortunately there is no simple answer regarding price.

First, advertised prices almost never include window installation, nor do they include removal of the older windows being replaced. This can vary the cost of window replacement significantly. For example, removing old metal windows is far more difficult and labor-intensive than removing old wood windows. 

Another important cost factor is the type of windows homeowners want for their homes. Non-operating picture windows are less expensive than operable double-hung styles. Casements usually cost more than double-hungs.

Standard-size “stock” windows are typically less expensive than custom-made products, although in the long run, with the necessary interior and exterior cosmetic work required to make stock windows “fit” a home, it’s highly doubtful stock windows are truly less expensive than custom windows.  Certainly the size of the new windows, the level of insulating glass chosen (i.e. double- or triple-pane, argon or krypton gas), the options selected, and the style of the windows also play a large part in determining the cost of new windows.

Then there’s the cost of the company that sells and installs windows. There are the costs of doing business and staying profitable. As homeowners, should we not expect to pay a fair price so these companies can do a professional job installing our windows without cutting corners?  And don’t we want them around in the future should we need them again later? Like many homeowners, I don’t mind paying more than I originally expected for a home-improvement project, as long as I know the reasons for the higher costs.  However, if I pay more, I also have higher expectations. I expect quality products and work, as well as excellent service.

I, too, do my own research on remodeling companies I’m considering.  I also know that all companies have some unhappy customers; it’s inevitable.  I just don’t want to be one of them. So when a company gives me a few references, I ask for a few more. I know the first references they provide may be expecting my call, but the additional ones probably aren’t. With this approach, I get candid feedback, not canned.

In summary, to get a good idea of what it costs to purchase windows, do your homework.  Learn as much as you can about the windows you want for your home. When choosing a remodeling company, ask for additional references.

I will close in saying that “cheap” and “lowest prices” should not important when you’re selecting something like windows for your largest investment, your home. It’s true that you will get what you pay for -- in terms of product quality, the appropriate options and glass you should have, the quality of work in installing the windows and even the quality of the company you’re doing business with.