Money Management

You have a binding contract with a home seller. So, what happens if they decide they don’t actually want to sell after all? Here’s what you need to know. [[{“value”:”

When you have an offer to buy a home accepted, you probably start envisioning yourself living in the property. You also generally begin to incur costs. For example, you might pay for an inspection of the home you’re buying, as well as for an appraisal. You’ll likely also move through the process of getting approved for a mortgage, which can take time. Plus, you may give notice to your landlord that you’re moving or begin the process to sell the property you were living in before.

In other words, a lot of stuff changes in your life because of your impending home purchase. But what happens if you hit a snag and the seller decides they don’t want to sell anymore? What are the options available to you in this tricky situation?

Here’s what you can do if a seller backs out of a sale

If a seller decides not to move forward with a home sale after accepting your offer, you have a few possible options.

You could sue for specific performance

Essentially, what you’d be doing is asking the court to make the seller go through with the sale. Specific performance is more common in real estate transactions than in other situations where people don’t follow through on contracts since monetary damages don’t always cut it. After all, one piece of property isn’t necessarily interchangeable with another.

You could sue for damages

Another option would be to sue the seller for money that you lost because they decided not to go through with the process. Depending on when they back out and how much you’ve spent, you may be able to get money back for appraisal or inspection costs you paid or any additional living expenses you had to incur because you couldn’t move as planned. You need to have specific evidence you lost money because of the sellers, though.

You could walk away

You always have the option of just walking away without a fight. Before you do this, though, you will want to see if perhaps the seller would voluntarily agree to compensate you for any costs you incurred. They may be happy to do that, rather than face a lawsuit. You’ll also want to get back any deposit you made on the property, which the title or escrow company holding the funds should arrange after they are notified the sellers backed out.

In order to pursue a remedy in court, you do typically need to be able to show that you were ready, willing, and able to follow through on buying the property had the seller not backed out. So make certain you can show that you would have had the funds and moved forward with buying if the seller didn’t change their mind.

Which option is right for you?

Now you know what you can do, but it’s harder to decide what you should do.

If it’s early in the process and you haven’t spent a ton or fallen totally in love with the house, walking away is the easiest option. But if you’re out money in a situation where the seller is clearly failing to live up to their obligation to sell, then getting a lawyer and suing could make sense. You don’t deserve to lose money because someone else changed their mind after signing a binding contract.

If you’re truly in love with the house, though, and absolutely want to buy it, suing for specific performance could be the way to go — as long as your contract is detailed enough for the court to decide to move forward with ordering the sale.

Since this is a complicated decision, talking to a lawyer is usually advisable in this circumstance. The good news is, you should be able to get legal fees paid by the seller if you win your case. Just remember, if you were ready to finalize your application to a mortgage lender and buy a house, and the sellers backed out, they violated contract law and should face the consequences.

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For some people, an early tax filing is off the table. Read on to see why. [[{“value”:”

Tax returns for 2023 are due on April 15 this year. But seeing as how the IRS opened up the tax season on Jan. 29, at this point, a lot of people have already managed to submit their 2023 tax returns.

There’s a big benefit to filing your taxes well ahead of the April 15 deadline. If you’re due a refund from the IRS, the sooner you submit your return, the sooner that money can hit your bank account. And if you find out that you owe money to the IRS, by filing taxes early, you’ll have more time to come up with a plan to scrounge up that cash rather than risk accruing interest and penalties.

In theory, I’d like to be someone who files their taxes early — namely, to get an unpleasant and time-consuming task over with. In reality, though, because of certain investments I hold, filing my taxes early is basically a no-go.

To be clear, this doesn’t mean I can’t get my return in before April 15. But filing in, say, late February, early March, or even mid-March just isn’t possible. Here’s why.

When you don’t get your paperwork in time

Many people get all of their tax paperwork by the end of January. But because of certain investments I hold, some of my paperwork doesn’t come in until we’re well into March. And that takes an early filing off the table.

I hold certain investments — namely, real estate investment trusts (REITs) that are not publicly traded — that are required to issue shareholders a Schedule K-1 each year. This is a form I need to file my taxes.

Entities that are subject to Schedule K-1 reporting are generally required to issue those forms by March 15. But sometimes, they get leeway beyond that date or are just plain late.

In my experience, I often find that my K-1s don’t arrive until late March. And it’s only once I have those forms that I can sit down with my accountant and review my overall earnings and income picture.

Usually, by the time that happens, it’s already April. So while I’m not necessarily filing my tax return the day before the IRS deadline, it’s also fair to say that I’m not filing my taxes early.

A timeline that isn’t a problem for me

If I were someone who commonly got a tax refund, then having to file my taxes at basically the last minute would annoy me, as it would mean delaying my money. But as a self-employed small business owner, I’m someone who pretty much never gets a refund. Because of this, it’s not the biggest deal to file my tax return late in the season.

Also, I’m no stranger to owing the IRS money in April. So what I do during the year is set aside funds for when I need to write that check. Because of this, I’m not left scrambling when I file my taxes, say, six days before the deadline and have limited time to come up with the money.

If you’re someone who usually gets a refund, though, and you’re someone who likes to file taxes early, then you’ll need to be mindful of the investments you choose. Some of them — and their associated paperwork — could leave you with no choice but to basically file your taxes at the last minute year after year.

If you’re not sure whether any of your investments will subject you to K-1 reporting, sit down with an accountant to review your portfolio. That way, there won’t be any surprises.

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Some insiders predict Bitcoin could reach $100,000 in 2024. Find out what’s behind the coin’s price surge and what it means for investors. [[{“value”:”

Bitcoin is on a roll. The granddaddy of cryptocurrencies has soared by over 110% in the past year, per CoinGecko data. It pushed above the $50,000 mark on Valentine’s Day for the first time since December 2021. So far, it’s stayed there. And some analysts are optimistic it might go higher.

The strong performance is a relief to those crypto investors whose portfolios dropped dramatically in the 2022 market crash. Even so, Bitcoin remains a long way from its high of almost $68,000 in November 2021, and still faces some serious headwinds.

What’s driving the surge?

Two of the biggest reasons for the price rise are the SEC’s recent approval of a spot Bitcoin ETF and speculation around the impending Bitcoin halving.

1. Upcoming Bitcoin halving

In a few months, Bitcoin miner rewards will be cut in half. It’s something that happens roughly every four years, and historically, Bitcoin’s price has risen after each one. Investors are speculating this will happen again this time.

The last halving was in May 2020, when the reward for mining a new block was cut from 12.5 BTC to 6.25 BTC. Around April, the block reward will fall to 3.125 BTC. It’s a way of maintaining scarcity and combating BTC inflation, and it can also generate attention.

Without getting too technical, the Bitcoin blockchain is a huge network of connected packets — or blocks — of information. Miners earn BTC when they add a new block of validated transactions. Halving is the built-in mechanism that slows the speed of production.

2. Spot Bitcoin ETF approval

In January 2024, the SEC approved a handful of spot Bitcoin exchange-traded funds (ETFs). In some ways, this was a game changer for cryptocurrency because it adds legitimacy and removes some of the barriers for investors. Not least because you no longer need an account with a crypto exchange to buy Bitcoin. Several observers predict this will lead to high in-flows of money into crypto.

The approval means investors can access Bitcoin directly from their brokerage account. This includes retirement accounts such as IRAs. Some people may also be able to include it in their 401(k)s. Retirement fund managers and institutional investors managers may add the spot ETF to their lineups. Not only that, but it solves potential custody concerns and gives investors more protection.

Is crypto staging a comeback?

The crypto community is understandably excited about Bitcoin’s recent performance. Some Bitcoin bulls such as Rich Dad, Poor Dad author Robert Kiyosaki, believe Bitcoin will reach $100,000 this year. I take these predictions with a grain of salt. People have been making these kinds of claims about Bitcoin for years. Moreover, a price surge doesn’t solve the challenges Bitcoin faces.

It’s certainly true that the crypto market is shaking off the ice after a long winter. It’s also true that Bitcoin’s halving may push its price higher. However, the market has changed a lot since the last halving. Speculation and a higher presence of institutional investors mean gains are often baked in before the event takes place. Plus, CoinDesk also points out that the magnitude of the price gains gets smaller with every halving.

Moreover, for long-term investors, immediate price movements are only part of the picture. The real question is what cryptocurrencies might do in the coming decade or more. And that depends on how the technology develops, the impact of regulatory changes, and wider economic factors.

Crypto is still a high-risk investment

Putting aside the bullish price predictions, cryptocurrency continues to be a risky and volatile investment. There are several regulatory and technical hurdles the industry needs to overcome if it’s to reach its potential. On top of which, the collapses of several high-profile crypto exchanges hit investor confidence hard.

The regulatory issue is a biggie. The SEC’s cases against several top crypto exchanges are ongoing. The main thrust of its case is the accusation that they’ve been trading unregistered securities. It believes that some cryptocurrencies should have registered with the SEC and follow its rules on reporting and other matters. If the courts agree, it could seriously hamper crypto investors’ activities in America.

There’s a related question of investor protection. Unlike money in a bank account, cryptocurrencies are not covered by FDIC insurance. SIPC insurance does not apply to cryptocurrencies held in a brokerage account. (Though it does apply to ETFs). Put simply, crypto held in a custodial wallet — such as on the platform you bought it from — is at risk if that exchange or brokerage fails.

One way to mitigate this risk is to move your assets to a crypto wallet that you control. Just be aware that if you lose the security info, you might lose access to your coins completely. Another is to buy into a Bitcoin ETF. In that scenario, it’s the fund, not you who needs to worry about custody.

Key takeaway

If Bitcoin’s recovery has made you wonder about a potential comeback, tread carefully. It is still a volatile high-risk asset. Make sure you understand the potential dangers involved, and only invest a small percentage of your portfolio in risky assets like cryptocurrency.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool recommends Flow. The Motley Fool has a disclosure policy.

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Being frugal doesn’t have to be a drag. Learn how saving money on everyday expenses can be enjoyable. [[{“value”:”

So often, when you hear about ways to be more frugal, the suggestions do not really sound very enjoyable. Of course, it can be better for your personal finances to spend less over the long term. But if you have to give up all kinds of fun stuff just to put more money in your savings account, that prospect is not necessarily very appealing.

The good news, though, is that there are actually some money-saving things you can do that can be downright fun. In fact, here are four frugal habits that I actually enjoy, and that you might find to be pleasant too.

1. Shopping at thrift stores

Shopping at thrift stores can come with significant savings, with one study indicating thrifters save close to $1,800 annually by avoiding new purchases and buying used. I also much prefer it to just going to the store and picking up brand-new items off the rack.

I’ve purchased the vast majority of my furniture (except for items like mattresses and soft furniture) at thrift stores, estate sales, and garage sales. I also buy almost all of my kids’ clothing and a ton of my household decor, like paintings and decorative items, at thrift stores.

I do this not just because it’s cheaper but also because I find the stuff to be better made. Plus, I don’t just get stuck with buying what’s on trend and I can buy more items while spending less. Just this past year, for example, I was able to send my son to school in a different Christmas sweater for almost every day of December — all for less than it would have cost me to buy one new holiday sweater on Amazon. And I can sell all those items back to consignment stores afterward.

Thrifting also feels like a treasure hunt, and it allows me to create really unique and personalized spaces over time. It’s by far my favorite money-saving habit.

If you enjoy shopping, or if you need to decorate your house or buy clothing, check out your local consignment and thrift stores first. You may just be amazed at what you find.

2. Cooking at home

Cooking at home is something else I really enjoy doing. I do dine out often, but my husband and I also really like to challenge ourselves by trying to recreate restaurant meals at home for less. We’ve managed to perfect certain dishes like pad thai and various kinds of pasta and seafood dishes, and our versions have become so much better that we don’t even order them in restaurants anymore.

Cooking together is something our whole family gets into, and my kids even have little toddler-sized kitchen knives. It costs a lot less than visiting a restaurant with our family of four, too. If you’re spending a lot on dining out, why not try out our technique of trying to beat the restaurant food by making it better at home? You may find the process fun and the food delicious — and you can keep more money in your checking account in the process.

3. Gardening

Buying fresh veggies and fruit can get really expensive, especially since my kids can devour a container of strawberries in around 0.4 seconds. Gardening gives us a less expensive way to get some of these items. We planted raised bed gardens in our backyard, along with some berry bushes in our yard, and now we get a good amount of our produce from our own garden during the summer months.

Gardening can be expensive to get started with, but try to grow your plants from seeds and attend plant swaps as much as possible to make sure this is actually a frugal habit if you want to give it a try.

4. Making my own coffees at home

Finally, the last frugal habit I find fun is trying to create fancy coffee drinks at home. I invested in a nice machine that allows me to do everything from grind my own beans to froth milk and I have a great time trying out different combinations of flavors to make customized drinks.

If you like fancy coffees, buying the equipment to make your own at home could pay off in the long run. While I spent about $200 buying the coffee machine, I’ve saved around $750 a year even after accounting for buying coffee beans, since I was buying fancy coffees a couple days a week at around $4 or $5 a pop.

As you can see, these frugal habits can be enjoyable all while saving you money. Give them a try yourself today to see if they’ll work for you as well as they have for me.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

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*Stock Advisor returns as of February 20, 2024

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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