If you’re buying or selling a home this year, you’re likely saving up for a variety of expenses. For buyers, that might include things like your down payment and closing costs. And for sellers, you’re probably working on a bit of spring cleaning and maintenance to spruce up your house before you list it.
Either way, any money you get back from your taxes can help you achieve your goals. Using a tax refund is a common tactic for buyers and sellers.SmartAssetestimatesthe average American will receive a $2,897 tax refund this year. The map below provides a more detailed estimate by state:
If you’re getting a refund this year, here are a few tips to help with your home purchase or sale this season.
How Buyers Can Use Their Tax Refund
- Growing your down payment fund– If you haven’t started saving for yourdown payment, let your tax refund kick off the process. And if you have a fund already, the money you get back could put you closer to yourgoal.
- Paying for your home inspection– Yourhome inspectioncan save you a lot of headaches down the road by helping you determine the condition of the house. As a buyer, you’ll typically be responsible for paying for yourinspection, and it’s definitely worth the investment.
- Saving for closing costs–Closing costsare additional expenses you’ll need to pay once it’s time to close. Theyaverageanywhere between 2-5% of the purchase price of your home.
This list is a great start, but it isn’t exhaustive of all the costs you may encounter as you set out on yourhomebuying journey. The best way to prepare is to work with a trusted real estate professional to make sure you understand what’s to come in the process.
How Sellers Can Use Their Tax Refund
- Making small upgrades–NerdWalletprovides a list of great ways to use your tax refund, including tackling small projects or boosting your curb appeal to help your home stand out.
- Making repairs– If there’s anything in your house that needs to be fixed,American Financingnotes that completing repairs is another great use of that money.
- Buying your next home– Whether you’re selling tomove upor downsize, you can use your tax refund to help pay for any costs on the purchase of your next home.
Of course, it’s important to talk with your trusted real estate advisor before taking on any projects. They’ll make sure you can focus on areas that’ll help you receive the best possible price when you sell.
Funding your home purchase or sale can feel like a daunting task, but it doesn’t have to be. Your tax refund can help you reach your goals. Let’s connect to discuss how you can start on your journey.
Goodwin Realty & Associates has been assisting Osceola County home sellers and Osceola home buyers for over 48 years. There is a reason why we are a leader in Central Florida Realty. We are among the best and most respected in the industry. Call (407) 846-2787 today. We would love to help you make one of the most important decisions you’ll make in your life!