Use Your Tax Refund to Achieve Your Homeownership Goals
For home buyers and sellers, using a tax refund is a common tactic to help them cover expenses involved with the purchase or sale. SmartAsset estimates North Dakota residents will receive a $3,004 tax refund this year and Minnesota residents will receive $2,543.
If you’re getting a refund this year, here's a few tips to help with your home purchase or sale this season.
How Buyers Can Use Their Tax Refund
A few ways your refund check can help include:
Growing 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 funds 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 worth the investment.
Saving for 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 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 advisor 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 are planning to sell it this spring, your tax refund can help make sure your home is ready to list. Here are a few ways current homeowners can put their tax refund to effective use:
Making small upgrades – To help make your property stand out, tackle small projects or boost your curb appeal.
Making repairs – If there’s anything in your house that needs to be fixed, completing repairs is another significant use of that money.
Buying your next home – Whether you’re selling to move up or downsize, you can use your tax refund to help pay for any expenses related to the purchase of your next home.
Talk with me before taking on any projects. I’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. Connect with me today to discuss how you can start your journey.