During tax refund season, it is not uncommon for homeowners to turn to thoughts of remodeling. It is a smart way to reinvest the money into your home, which you hope to continue living in for several more years. You should start looking for a home remodel contractor right after you have received notice that your taxes have been accepted and are being processed, because then you have the money to pay the contractor once the work starts or finishes. Here are the cost ranges for five of the most common remodeling projects during tax refund season.
For the last two years running, bathrooms have been the number one remodeling project during tax season. In years prior to 2013, kitchen remodels were wildly popular, but once taxpayers had completed their kitchens, they moved on to their bathrooms. The biggest reason for this order of business is that kitchens are the most expensive remodel you can do, followed by bathrooms. Depending on how upscale you want to make your bathroom as well as the size of your bathroom, you could be looking at $2,500 up to $10,000 or more. Toilet, tub/shower, and sink/vanity replacements are at the core of this expense.
The reason why homeowners choose to remodel their kitchens is that kitchens quickly become outdated. Within a single decade, your kitchen already looks old. Just think about how kitchens in the 70's looked by the time the early 80's came and went. Unfortunately, for most homeowners, the kitchen is the most expensive area of the house to remodel. Starting around $5,000 for cabinets alone, you could pay up to $40,000 or more after new counter tops, sinks, appliances, flooring, lighting and paint are added in. During tax season, most homeowners choose to make a mini-makeover on their kitchens instead because it is less costly and because it makes them feel as though they have accomplished something with the kitchen.
Windows and Doors
Tax refunds are perfect for replacing windows and doors. Front doors are the most commonly replaced doors, while windows on the first floor of a home are the least expensive for homeowners to replace. There is a significant return on your investment here too, so long as you are buying energy efficient windows and doors. Expect to spend about $2,000(minimum) to $12,000 on windows and doors for your home, unless your house is all windows or is greater than two thousand square feet.
Whole House Remodeling
Here is another remodeling project that regularly exchanges places with adding on to your home. Usually, this includes siding, roofing, or painting the entire interior of your home. It is more of a spruce-up or maintenance type of remodeling project than a full-on construction contractor project. Depending on what you choose, the size of your home and the materials you select, you could be looking at $1,000 to $25,000. Much larger homes and materials that are more expensive add about $2,000 to $15,000 more.
Additions to Your Home
This is a great way to increase resale value and add more space for your family. A four seasons room addition, if you do it yourself with a pre-fab kit, is around $5,000. If you hire a contractor (such as 3 R's Construction Management LLC), it can go as high as $70,000 if you want a custom job or want more than the basic kits provide. A two-story addition is around $60,000-$200,000, again depending on the size of your home, where you are located in the country, and whether or not you add a second bath to your addition. Rebuilding your garage to include a mother-in-law room above is about $10,000-$20,000+. If you plan to add additional basement space underneath your home's addition, add another $5,000-$20,000 for excavation and cement foundation.
Getting Ahead of the Busy Construction Season
Since thousands of homeowners have the same ideas about their tax refunds as you do, you will want to get ahead of the busy construction season. This is why it is so important to file your taxes early and start looking for a contractor for your project right away. As the busy season for contractors approaches, i.e., spring and summer, the rates increase and your refund will look more like a drop in the bucket if you put off looking for a contractor until you have the funds.