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Tax Refund & Home Buying

Updated: May 18, 2023

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.

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

There are multiple ways your refund check can help you as a homebuyer. A few include:

1. Down Payment Fund - If you haven’t started saving for your down 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 your goal.

2. Paying for a home inspection - a home inspection can 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 your inspection, and it’s definitely worth the investment.

3. Closing Costs - Closing costs are additional expenses you’ll need to pay once it’s time to close. They average anywhere 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 your home-buying. The best way to prepare is to work with a trusted loan officer & real estate agent to make sure you understand what’s to come in the process.

How Sellers Can Use Their Tax Refund

If you own a home and plan to sell it this spring, your tax refund can help you ensure your home is ready to list. Here are a few ways current homeowners can put their tax refund to good use:

1. Making small upgrades – tackling small projects or boosting your curb appeal to help your home stand out.

2. Making repairs – If there’s anything in your house that needs to be fixed, completing repairs is another great use of that money

3. Buying your next home – Whether you’re selling to move up or downsize, you can use your tax refund to help pay for any costs of the purchase of your next home.

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!

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