You received a giant tax refund and you can’t wait to spend it. If you are going to make changes to your home with it, you should know which changes give your home value or a return on your investment. Many people think any changes they make to their home will increase its value, but this isn’t the case.
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Why should you care about whether the improvements make a difference in your value? It’s all about the return you will see. Chances are that you will sell the home at some point. It may not be next year or even in the next five years. But eventually you will sell it, which means you want to make a return on what you invested in it.
Keep reading to learn which changes will give you the best bang for your buck.
Update the Curb Appeal
Believe it or not, a little landscaping can help increase the value of your home. You don’t have to spend a lot, but just enough to make your home look ‘homey’ and uncluttered. Skip the expensive additions, such as a deck or patio and go for the landscaping instead.
Your goal should be to make your home look well manicured. Choose landscaping that is easy to maintain and won’t grow exponentially. You want your home to look neat, well decorated, and inviting for guests to come inside.
Install a New Roof
If your roof has seen better days or is on its last leg, definitely invest your money into the roof. Not only will the roof keep your home dry, but it will provide many other benefits as well. They include:
- Curb appeal – There’s nothing attractive about a home that has missing shingles or a damaged roof. A new roof will make your home look appealing again.
- Energy efficiency – A damaged roof could leak air out of your home, forcing your utilities to work harder in both the hot and cold weather. Replacing the damaged roof can make your home feel comfortable and keep your bills low.
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Install New Windows
Windows can have the same effect as a new roof. They can improve the home’s curb appeal as well as help its energy efficiency. Leaking windows can cause more wear and tear on your utilities. Old windows may take away from the home’s appeal, making it look older or more worn down than it is inside.
New windows can be costly, so using the lump sum you receive from your tax refund can help you afford the high quality windows you need to keep your home running efficiently.
Install New Flooring
New flooring can have a dramatic impact on your home’s value. It can also have a drastic effect on your home’s aesthetic appeal. You might be surprised to see just how much it changes the look of a room. Whether you just change out the carpeting for fresh carpeting or you change the type of flooring entirely, you can change the look of a room with this one change.
If you are considering remodeling a room, such as a kitchen or bathroom, consider doing the flooring first. You know it will increase your home’s value and it might change the look of your room, decreasing the need to make any drastic changes.
Kitchens and bathrooms are the most common rooms for homeowners to remodel, but they also offer the lowest return on your investment. If you start with the flooring, you might realize that you don’t need to make too many other changes or you can keep the cost to a minimum.
Prioritizing the changes you make to your home with your tax refund can help you get the highest return on your investment. That’s not to say that you can’t make luxurious changes that you’ve always wanted to make, but if your goal is to make a profit, your changes are best when kept to the above changes.
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