Using Your Tax Refund To Achieve Your Homeownership Goals This Year

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. 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:

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 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.

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 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 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 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.

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.

Bottom Line
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. If you are looking to buy a new Knoxville home or a new home in the East Tennessee area, give the Hometown Experts a call! 865-693-7653

Hometown realty ryan coleman east tennessee real estate

Real Estate With Ryan
The real estate market is a competitive place! The way you market your home plays a HUGE factor in the number of showings and overall the number of people who will see your home! In this episode Ryan talks about how to market your home in 2022.

🎙 Join Ryan Coleman Broker/Owner of Hometown Realty and host of REWR every Saturday @ 11am on Talk Radio 92.3 / AM 760 WETR and at 1pm on News Talk 98.7 🎙⁠

Be sure to download the Talk Radio and News Talk apps to listen on the go!
Talk Radio: https://apple.co/37q7lAu
News Talk: https://apple.co/3aHkXth

You can watch past live streams on other Social Media channels:⁠
YouTube: https://bit.ly/3gkhS3U
Facebook: https://bit.ly/3l67kJd
Soundcloud: https://bit.ly/32bvkC9
Apple Podcast: https://apple.co/3j7aomn
Google Podcast: https://bit.ly/3gcSXiE

Did you know we give away tickets for all of the home Tennessee Volunteer games? If you are interested in entering click the link below! Completely free, we want to give back to our awesome clients & potential clients!

https://ryancoleman.org/vol-ticket-giveaway/

Check out this article next

What You Need To Budget for When Buying a Home

What You Need To Budget for When Buying a Home…

When it comes to buying a home, it can feel a bit intimidating to know how much you need to save and where to find…

Read Article
About the Author
Ryan Coleman
Ryan is from Richmond Virginia and attended college here in Knoxville Tennessee. He is married to his beautiful wife April, they have one daughter and one son who reside in Knoxville. Ryan is a highly trained, knowledgeable Real Estate Broker and Investor (owning both Residential Investment & Commercial Real Estate). For over 20 years, Ryan has spent much of his time helping buyers and sellers find their perfect dream home, devoting his personal attention during the entire transaction until and beyond closing.