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Tips to Help Your Tax Return Increase Your Home’s Value

What better way to make money than to have your tax return increase your home’s value, right? Plus, did you know when you sell a home you can write off your home improvements against your capital gains? That’s right. Use your tax refund to make money and save money. Win-Win!

Think of what you spend your tax return on and then think of what will give you the most bang for your buck when it comes to increasing the value of your home. Focus on kitchens, baths and “under the hood.” These three areas will ensure return on investment of up to 90 percent of your cost.

Spruce up the Kitchen.

Whether it’s re-facing your cabinets or just changing the fixtures, the kitchen is great place to make a big difference. A complete kitchen makeover could give you a return of up to 80 percent of the cost to renovate. Smaller kitchen updates, such as paint and knobs, will enhance your home’s appeal and lead to a fast sale.

Update your HVAC system.

Now if you’re going to sell right away, you can’t expect to get the $12,000 back for the $12,000 HVAC system you just bought. But if you plan to stay in your home for a few more years, a new HVAC system is a smart move. You will not only save on utility bills, but when it comes time to sell, you will shoot to the top of buyers’ most-wanted list. Plus it will increase your market value by a few thousand dollars and could save you a few months of mortgage payments by selling fast.

Update the appliances.

Is your double oven seeing double? Rust stains developing in the dishwasher? These are all big turn-offs for buyers. For a few thousand dollars you could rip out the old and install the new. Go for stainless. These appliances have a clean, timeless feel that homebuyers are looking for.

Maintain your foundation.

Depending on where you live, you may or may not have foundation issues. But if you live in an area where foundations are a concern—this is an excellent place to put your money. However, foundation repairs can go as high as $30,000 in a 2,500-square-foot home. And no good buyer’s agent is going to let his or her client buy a topsy-turvy house. Foundation issues can be the No. 1 reason sales go south. So maintain your foundation. Every three to five years have a reputable foundation company evaluate your home. If there are problems, correct them. Foundation issues are like socks—a stitch in time saves nine.

Replace your windows.

Let there by light! And lower bills! And higher resale value! Windows are key. There are so many inexpensive window makers on the market right now, it’s almost crazy to live in a drafty house.

Got gold light fixtures and faucets?

This is the biggest aesthetic turnoff for buyers. The ’90s gold fixture is a buzz kill. For just a few hundred dollars, you can switch out lighting, faucet and even shower doors with updated stainless, brushed nickel or rubbed bronze fixtures.

Go green.

We’re talking about landscaping here. Build a gorgeous outdoor living space. Install a sprinkler system. Plant some trees. Curb appeal can make or break a deal. And that backyard living room with a built-in grill can give you up to 90 percent of your return on investment.

You have to spend money to make money. It’s true. But the best place to start is in your very own home.  

The team at Modtown has the expertise and advice to help you get the highest value for your home possible. Contact us today to see just how we can help you!