Also consider that you may have to move electrical wires if there are outlets close to where the new window would be located. I think VK's estimate is a little low, but not a lot. Probably closer to $1000 by the time everything is completed. You need to cut the hole a lot larger then the window to add a 2X8 header above the window supported by double 2X4's for each side and another across the bottom for sill reinforcement. Hole needs to be 4 inches wider than the window rough opening on each side and bottom and 10 inches wider at the top. The larger cut can be done on the inside so repairs to drywall and paint are also required, but that should avoid the need to repair siding on the outside. Go to place where they are building new homes and look at how they frame a window area to see what I mean about headers and side framing vs a standard wall frame.
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