It’s the most wonderful time of the year—not Christmas—tax return time. If you’re sifting through ideas of ways to spend your tax return, look around you (literally!) for worthy investments of your money and time. Some home projects can give you a return on your hard-earned dollars in the way of home value. To make sure you’re spending your tax return dollars on home updates that give you a significant return, use this guide to select your next home remodeling project that makes cents.
Hardwood floors are near the top for many home buyers; that demand is part of the reason that new hardwood floors can increase your home value. Traditional hardwoods or engineered hardwoods are the two most common choices. There are other advantages to installing hardwood floors too: they’re durable, can be refinished as needed, and come in a variety of styles perfect for any home (come see!).
Bathroom face lift
A new vanity, tiled shower, white toilet (no colored toilets!), and a new floor can do wonders for the look of your bathroom AND for the value of your home. We’ve seen statistics that have put the return on investment in the 80% range, a favorable return for your tax return. Even a small investment of time and funds into a half bathroom (or adding a half bathroom) can increase the value of your home.
Bathrooms and kitchens sell houses, which is why an updated kitchen is a solid investment of your tax return. To get the most for your dollar, research your area to make sure you don’t overspend on your kitchen remodel. While you would love to have a gourmet kitchen with all the bells and whistles, from an investment perspective, you won’t get the most of your dollars if you invest too much for your area. New cabinets (or refaced is the cabinet boxes are still sound), new back splash, counters, and a new floor (or whatever combination of these items are needed) can get you a return on your tax return investment.
Adding finished square footage to your home is always going to lead to a higher resale and home value. Finishing all or even part of your basement into a family room, media room, or bedroom (or all of the above) can give you more space when you need it. Drywall, new floors (options for basement flooring here), and finishing touches (i.e. shelves, curtains and blinds, etc.) give you more functional room and an increase in your home value.
Outdoor space is a priority for all us; after all, an outdoor grill out is one of our favorite pass times. That’s why building a new deck or sprucing up your patio with a fresh look (more outdoor ideas here) can boost the value of your home.