Nobody likes tax season (except for maybe accountants), but everybody loves getting a tax refund. According to the IRS, the average federal tax refund is $3,120. There is a lot you could do with $3,000. Have you thought about using it to fund some home improvement projects?
Yes, home improvement projects can be fun
Home improvement projects are fun to think about and plan for. You’re not going to add a new man cave or crafting room for $3,000, but there are a number of projects you can complete for that amount, including:
- kitchen upgrades, like adding a backsplash
- landscaping
- painting your living room
- refinishing a hardwood floor or two
- replacing bathroom fixtures.
If you’re planning to sell in the near future, consider which projects are likely to give you the most return on your investment. Realtor.com has a list of the projects that have the best and worst ROI. You might be surprised to learn that bathroom remodels pay off at a lower rate than upgrading garage and entry doors. But the good news is that you can afford to get a new garage door if your tax refund is around the average.
Get more energy efficient
Can you guess what home improvement project has the highest ROI? It’s adding attic insulation. It’s the only project on the list that returns more than 100% of your investment. That’s because boosting the energy efficiency of your home starts saving you money on the day you finish the project. And at a cost of about $1,200, it’s well under your $3,000 tax refund.
Other easy ways to improve your home’s energy efficiency include purchasing new appliances, installing low-flow showerheads and toilets, and adding a programmable thermostat. If you’re not sure where to start, talk to your electricity provider. They may do an energy audit of your home, at little or no cost, to tell you where your home is leaking energy and what you can do about it.
Get more insurance
You’ve got homeowners insurance. But is that all you need? Most homeowner’s policies don’t cover water damage from flooding. Floods can happen anywhere, and the damage they do to homes is far greater than your tax refund is likely to be. Most homeowner’s policies also don’t cover detached structures such as sheds and some garages. The cost of replacing them is also likely to be more than your tax refund can cover. Both flood insurance and other structures insurance should be considerably less per year than the average tax refund. Check with your insurance agent to get a quote.
If you’re considering selling your home sometime soon and you’re not sure what the best way to invest in your home is, call us. We can talk with you about what kinds of upgrades are worth doing in this market, and which ones probably aren’t going to influence the selling price of your home.
Contact us today at (301) 882-8186 or use our contact form if you’re ready to start planning the sale of your current home, and the purchase of your next one. Our office hours are 8:00 am to 6:30 pm Monday to Friday, and 9:00 am to 2:00 pm on Saturday and Sunday, but you can call us anytime. We love to talk houses.