How Buyers and Sellers Can Use Tax Refunds

Getting a tax refund for 2021? As a potential buyer or seller the money you receive can help you achieve your goals.

SmartAsset estimates the average American will receive a $2,897 tax refund this year. In Massachusetts that number is about the same at $2,834.00.

So, if you are getting a refund this year, here are a few tips to help with your home purchase or sale.

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:

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 a fund already, the money you get 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 determine the condition of the house. As a buyer, you’re responsible for paying for your inspection, and it’s definitely 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  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 homebuying journey. The best way to prepare is to be 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 this spring, 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 – 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. But, before doing any work, please check with us. We can tell you what improvements will be worth your investment and which ones aren’t worth the money.

Buying your next home – Whether you’re selling to move up or downsize, you can use your refund to help pay for any costs for 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 at 508-360-5664 or msennott@todayrealestate to discuss how you can start your journey.

It’s important that you have the right information to make educated and informed decisions.

If your children or grandchildren are home for school vacation, we hope you enjoy the time with them!

Mari and Hank

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