Tax season is just around the corner, and for many Americans that means a tax refund coming in from the IRS. Whether you are getting a check in the mail or a nice direct deposit in your checking, here are some of the best ideas to invest your tax refund in your home to grow your property value, and your home enjoyment at the same time.
New Kitchen Appliances
Upgrading from old white or black kitchen appliances to a fully stainless steel kitchen is a huge facelift. Of course, you can always find something newer and more expensive, but stainless is still a standard that shows yours is an upper class home.
Buying a new matching fridge, stove, dishwasher, and microwave makes your kitchen look sleek and modern, and you’ll likely enjoy the conveniences of upgraded appliances. I have been eyeing smart appliances that I can control with my phone, but that likely would not pay for itself when selling the home some day in the future.
Keep in mind that your kitchen is one of the best rooms in the home to invest for a good return on investment. And as it is one of the most used spaces in many homes, it is a good one for your enjoyment as well.
Hardwood Floors
Having lived with linoleum, tile, and hardwood floors, hardwood is undoubtedly the best. But while it is the best, it isn’t cheap. Flooring will run you around $5 to $8 per square foot, plus installation and removal of the old floor. When I upgraded my old condo to hardwood, I removed the old carpet and tile myself to speed up and lower the cost of installing my new hardwood.
My parents just spent thousands adding hardwood to their living room, kitchen, entryways, stairs, and hallways. If you don’t have that kind of cash lying around and want to avoid borrowing for the upgrade, your tax refund may be just perfect for hardwood floor installation costs.
Install Central Air
My brand new Portland home came with central heating and “air conditioner ready” hookups, but it still took about $7,000 to buy an air conditioning unit and have it installed in my home. If you don’t already have central heating, adding air can cost much, much more.
But air conditioning adds desirability to nearly any home, and it makes long summer days much more tolerable and long summer nights comfortable enough you can actually sleep. You can expect no more sweaty nights, complaining spouses, and discomfort when you use your tax refund to install central air conditioning. If you can afford to pay for it in full, no sweat!
Remove the Popcorn
Do you have popcorn ceilings, wood paneling from the 70s, or something else that makes your home totally dated? Invest a few dollars in getting rid of those features. Just make sure to test that your popcorn ceilings are not filled with asbestos, or the cleanup job may be much more hazardous and expensive.
It costs between $1 and $2 per square foot to remove popcorn, with a national average cost of around $1,600 total. With an average tax refund of $2,700, you should be able to cover that with an extra $1,000 to spare!
Front Entryway Updates
A new paint color on the front door can completely change the look and feel of a home. New paint or siding can make it look like a new home altogether, even if the inside spaces remain unchanged.
New paint on a front door should call less than $250. Painting the entire house generally costs less than $4,000. Depending on the size of the house and the paint you choose, painting costs anywhere from about $1,500 to $3,500. Whatever the cost, it may feel like getting a new home, and could increase your home’s value if you can dramatically boost your curb appeal.
Turn Your Tax Refund Into More
If you want to invest your tax refund into your home but don’t know where to start, consider asking a local agent for advice. Building a relationship with an experienced real estate agent can come in very handy when you decide to sell your home in the future, and in the short-term it can help you take the right steps to preserve and increase your home’s value as much as possible.
Don’t know any agents? Don’t worry! Head to AgentHarvest where we have listings of experienced, vetted agents from coast to coast. Start the search for the perfect agent at AgentHarvest.
If you are buying or selling a house and are looking to hire a successful real estate agent to help you through the process, take a look at AgentHarvest's list of top-ranking local Realtors in your area. We found these agents by examining their sales track records, awards, rankings, client testimonials and by conducting personal interviews.