Finance Experts: 8 Best Money Moves To Make With the Proceeds of a House Sale

Jordan Rosenfeld

Sat, Apr 26, 2025, 4:01 PM 5 min read

Selling a home can be an exciting milestone, especially when it leaves you with extra money in your pocket. However, receiving a sizable financial windfall can sometimes feel just as overwhelming as it does rewarding.

While the proceeds from your home sale may provide welcome financial relief, keep in mind you might owe taxes on that income. Generally, if your profit exceeds $250,000 for individuals or $500,000 for married couples filing jointly, you’ll owe taxes — though certain exceptions apply.

If you’re wondering about the smartest moves to make with your home sale proceeds now that they’re sitting in your bank account, financial experts offer several strategic suggestions.

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While it’s tempting to spend any big windfall that comes your way, according to George Carrillo, co-founder and CEO at the Hispanic Construction Council, “Now is not the time for lavish vacations or luxury purchases, particularly with economic challenges like tariff wars and a looming recession casting shadows over the future.”

Instead, focus on shoring up savings and ensuring your portfolio is robust enough to weather turbulence, he recommended.

If you sell a house, and you have no other pressing financial needs (like loans to repay), the most obvious choice — and the most tax-beneficial — is to buy another house, according to Adam Hamilton, CEO of REI Hub.

Whether you purchase a new primary residence, “which helps establish and build up long-term wealth,” or an investment property, which helps you begin to take in monthly earnings “that can be a game-changer in building your wealth and supporting you through retirement,” a new purchase is a great idea, Hamilton said.

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Another great option is to buy a cash-flow earning investment, such as a duplex, according to Brian Rudderow, a real estate investor at HBR Colorado. “A cash-flowing duplex is a great use of funds from a house sale because it turns a lump sum of money into regular passive income.”

He suggested targeting a duplex that can provide around $200 to $500 in cash flow per month “for each door purchased.”

If you have no immediate need for the proceeds, the best thing to do with them is to invest them, according to Melanie Musson, a financial expert with Clearsurance.com.