How to Use Your Tax Refund to Increase Your Home’s Value

    After receiving a little extra money following the tax season, homeowners usually have the supplemental funds needed to complete home improvements without inferring with other financial responsibilities. 

    Around April and May is generally a good time of the year for homeowners to start these home improvement projects.

    What better time to complete these projects than in the beautiful Spring or Summer?

    What are some small home improvement ideas?

    1.    Paint

    Updating the paint in any room of your home is often all that you need to bring that room back to life!

    Painting is a project that you can hire someone to complete for you. Or you could save a bit of cash, and complete the project yourself or with your family.

    1.    Update Cabinet and Drawer Knobs

    Depending on the type of knob(s) you plan to use when updating the knobs throughout your home, the price can vary between roughly $1.50 and $12, for each knob. Of course, you can go with a more expensive option, but for the sake of getting the most out of your tax refund, it would be best to try and stay between $1.50 and $8.

    Also depending on the number of drawers and cabinets you are updating, the price can add up quickly if you are not careful. To navigate within your budget, you might want to start working on a room with fewer cabinets and drawers and progress to other rooms over time.

    This project is also a good DIY project, saving you more money.

    1.    Seal Gaps

    Often this type of project may be overlooked just because you may not be able to see a change physically. Nevertheless, sealing gaps is a cost-effective way to cut your heating and cooling costs while improving the overall proficiency of your home.

    You can complete this step by weather-stripping or caulking your home.

    •      Weather-stripping is a product that you can purchase at pretty much any hardware store. You should apply the weather-stripping into the groove of the door jam.
    •      Caulk is another product that is generally available at any hardware store. You should apply the caulk to cracks and openings near doors, windows and near electrical sockets.

    Preventing outside air from entering the home or conditioned air from exiting your home through these cracks and openings can potentially save you hundreds of dollars a year, if not more, on your electric bill.

    1.    Update light Fixtures

    Ideally, you would want to update the main focus areas inside of your home, like your kitchen, living room or master bedroom, because upgrading fixtures can be costly, especially if you are considering large fixtures.

    Whether you have chandelier style light fixtures or Wall sconces, there are hundreds of options available, from Modern to Contemporary, that can naturally provide your home the updated atmosphere you are looking for this spring.

    What are some larger home improvement ideas that will maximize your tax refund?

    1.    Repave or Resurface your driveway

    You probably have not repaved your driveway since you bought your home. It is easy not to think twice about such an enhancement; but, consider the appeal it will add to your home once completed.

    •   Repaving is a bit more expensive, requires more time and materials.
    •   Resurfacing is less expensive and requires less time because it does not require removing old asphalt and starting fresh.

    This project should generally run you $3000-$7000, depending on the square footage of your driveway and the method you choose.

    1.    Landscaping

    Landscaping allows you to be very creative. Yes, it would be best if you planted flowers, but take it a step further. Think about installing raised flower beds and window boxes to give your yard a more fresh look. You can combine the flower bed design with a stone or brick walking path through the yard as well.

    The type of stone you use, the square footage of the path, along with the cost of flowers, fertilizer, mulch, and other products, you can spend anywhere from $500- $3000 on this project.

    Keep in mind- you don’t have to complete the entire project in one season. Maybe this year you work on adding new flower beds and flowers, and next year you add the stone path and window boxes.

    1.    Build a Deck

    Building a deck is an excellent add on to your home for those spring and summer nights with the family. A deck capitalizes on your outdoor space and provides you with the opportunity to add more décor.

    The cost for this project significantly varies, depending on the design, size, and labor, but can be completed anywhere from about $3000 and up.

    1.    Replace HVAC system

    Many times people will by their house and not consider HVAC maintenance until they run into an issue with the system. Unfortunately, by then you are probably looking at thousands of dollars to repair or replace the system.

    If you replace your HVAC system with your tax refund you are not losing any money, and you will likely have a new warranty should any unexpected problems arise.

    1.    Update Garage Door

    Garage Doors endure a lot. The weather damages them. Sometimes our cars and children damage them.  These damages can cause unsightly dents, scratches and even cause malfunctions.

    This project can cost anywhere from $700 to $2000, depending on the model and labor.

    Conclusion

    These home improvement steps offer you the opportunity not only to save money throughout the year but increase your property value hundreds, if not thousands, of dollars.

    Who wouldn’t want updated appliances, beautiful décor and landscaping, along with a very energy efficient home?

    If you are looking to maximize your refund and increase your home’s value any from $1000 to $15000, without breaking the bank, try some of the tips listed above!

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