Using Your Tax Refund To Achieve Your Homeownership Goals This Year

Hey Friends,  Quick Question:

Did You Know That You Can Use Your Tax Refund To Achieve Your Homeownership Goals This Year?

If you’re buying or selling a home anytime soon, you’re likely saving up for a variety of expenses that take place in a real estate transaction.

For Homebuyers:  That might include things like your down payment and closing costs.

For Sellers: You’re probably working on a bit of spring cleaning and maintenance to spruce up your house before you list it and if you are relocating to a new area, you’ll automatically become a Buyer and definitely need to save up!

Either way, any money you get back from your taxes can help you achieve your goals. Friends, using a tax refund is a common tactic for buyers and sellers. SmartAsset estimates the 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

According to American Financing, there are multiple ways your refund check can help you as a homebuyer. A few include:

• You Can Grow your 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.

 

• Paying for your home inspection – Your 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. Even in Today’s Seller’s Market

 

• Saving for closing costs – Closing costs are additional expenses you’ll need to pay once it’s time to close. Nowadays they are paid almost 98% by Purchasers. They average anywhere between 2-5% of the purchase price of your home depending on the  the State.

 

• What About Huntsville Metro Area? Well, around Huntsville Alabama Buyers are also paying their real estate fees for closing costs, inspections and if appraisal comes below, add up that to your budget!

This list is a great start, but it isn’t exhaustive of all the costs you may encounter as you set out on your homebuying journey. The best way to prepare is to work with a trusted real estate professional, like John Wesley Brooks,  to make sure you understand what’s to come in the process in our North Alabama area.

How Sellers Can Use Their Tax Refund

If you own a home and are planning to sell this spring, or even close to summer,  your tax refund can help you make sure your home is ready to list. Here are a few ways current homeowners can put their tax refund to good use:

• Making small upgrades Before You List– NerdWallet provides 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 Financing notes that completing repairs is another great use of that money. You can’t hide it from a home inspector.
• 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 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.

Let’s Conclude With This Friends:

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. I’d love to help you out!

Remember, The Brooks Family Of Realtors has been serving the North Alabama and Tennessee Valley Since 1972!