Money Management

A repair escrow could be the best option if you need repairs to a home but the seller won’t or can’t fund them. Learn more about how a repair escrow works. 

When you buy a house, you will typically need to make sure you have an inspection so you can identify issues with the property before it becomes yours. If you are getting a mortgage loan, the lender will likely also appraise the property — and the appraiser may identify problems that can affect the home’s market value.

Sometimes, an inspection or an appraisal will find problems. For example, you may discover that there’s an issue with the driveway or deck, or that the sprinkler system in the home doesn’t work. This could make you wary of buying the property unless the issue is fixed, or it could cause your mortgage lender to say it won’t issue a loan until the problem is solved.

Ideally, you’ll be able to negotiate a deal with the seller to make those repairs to the property. But there are times when that won’t work because the seller can’t afford to do so, or because you need to close quickly, leaving no time for repairs to be completed. Or the lender may want to ensure that the repairs are made before agreeing to give you a loan and the seller won’t allow the fixes before closing.

In these circumstances, you could have a big problem that could derail the home sale. The good news is that a repair escrow or escrow holdback could save the day. Here’s how this works.

What is an escrow holdback or a repair escrow?

An escrow holdback occurs when some funds are not released at a home closing. Usually, when the buyer pays the price of the home (or gets a mortgage loan to cover the purchase), all the money is distributed to the sellers (or their mortgage lender) and to the county or homeowners association to cover transfer costs.

When you use a repair escrow or escrow holdback, though, some of the money changing hands is not disbursed. Instead, money is kept in an escrow account held by a third party to be used to pay for the necessary repairs to the property. This will be money earmarked specifically for the repairs that need to be made. Usually, you’ll need to hold back around 120% of the amount that the repairs will cost, just in case they end up costing more than expected.

You’ll need to change your original real estate contract to provide details on the funds to be held back — including whether the money will come out of the seller’s profits or whether the buyer will put extra money into the account to fund the repairs. You’ll also need to specify exactly what repairs will be done on the home and the timeline for completing them.

This money then stays in the escrow account, you can close on the home, and the money will be paid out for the repairs once they are completed to everyone’s satisfaction.

Be sure you write a clear agreement and document everything

If you or your lender determine a repair holdback is necessary due to an issue with the property, you’ll want to be sure to get everything in writing and document every detail about the money to go into this account. Check with your lender to find out the specifics, and consider speaking with a real estate lawyer to help you draft the contract amendment to best protect your interests.

Escrow holdbacks or repair holdbacks could save a home sale, but whether you are the buyer or the seller, you’ll always want to be sure your rights are protected and that you understand the details before you agree to this arrangement.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Don’t wait to make your financial resolutions for 2024. Find out how to make your money goals more manageable and why you should get planning now. 

As we near the end of the year, you likely have the holiday season and friends and family on your mind. In addition to planning holiday gatherings, now is an excellent time to prepare for next year before the busy last few days of 2023 arrive. That may mean setting resolutions. Two-thirds of Americans are planning to make financial resolutions for the year ahead. If you’ve been thinking of establishing financial goals for 2024, now is the time to prepare.

Consider your finances when making New Year’s resolutions

It’s no secret that now is when many people start to ponder what resolutions they will make for the coming year. In addition to fitness and health goals, financial resolutions are popular goals for Americans. It’s never too late to improve your personal finances.

If you’re considering making a financial resolution for 2024, you’re not alone. Recent data from The Ascent’s 2024 Financial New Year’s Resolution study shows that 67% of Americans plan on making a financial resolution for the new year.

Based on our findings, millennials were the most committed to setting a financial resolution for the new year, and a whopping 82% of those surveyed said they planned to make a financial resolution. Meanwhile, more than half (51%) of baby boomers had no intention of making a financial resolution for 2024.

You may wonder what type of financial goals are the most popular. Paying off debt is at the top of the list. A little over one-fifth (22%) of survey respondents plan to focus on paying off debt. The next most popular financial goal for 2024 is saving up for a significant financial milestone — 16% of study respondents will be saving up for milestone purchases like a home, car, or a wedding ceremony/reception.

Other popular financial resolutions include:

Saving for a purchase (like a new TV or cellphone, or for a vacation)Increasing incomeSaving for retirementReducing spendingBuilding an emergency fund

These ideas may inspire you if you’re still unsure what financial resolutions you want to make.

Do this to make your goal more manageable

Regardless of what financial resolution you set for yourself, it’s essential to set yourself up for success before making changes. Many people struggle with changing their financial habits because the goal feels so overwhelming that they never get started or they give up early.

You can make your financial resolution more manageable by breaking it up into smaller goals.

For example, if you plan to save $12,000 in 2024, that can feel overwhelming. But breaking that goal up into smaller monthly goals can feel more achievable. Setting aside $1,000 each month feels less scary and still gets you to your yearly goal.

You can also use financial apps to stay motivated and monitor your progress. If you want to reduce your spending and save more, budgeting apps may be helpful. For those wanting to reduce or eliminate their debt in 2024, consider using one of the best debt payoff apps. Leaning on technology like this can make it easier to achieve your finance goals.

Don’t wait to set goals for 2024

While it may feel like January is far away, 2024 will be here before you know it. Setting a financial goal now can be a great strategy. You’ll have more time to consider an ideal resolution based on your current financial situation and short- and long-term goals. So, what are you waiting for? What financial resolution will you be tackling next year? You can do it — I believe in you.

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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.The Motley Fool has a disclosure policy.

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Need a great gift for a special woman? Read on to see how Walmart can come to your rescue. 

Buying holiday gifts for the important people in your life is no easy feat. Not only do you have to stick to a budget, but you also have to find items that are apt to be well-received.

Thankfully, Walmart carries a host of women’s gifts at prices that won’t force you to completely deplete your savings account. Here are a few worth checking out, with the caveat that the prices reflected here are accurate as of the time of writing and may change over time.

1. MOSHU Oversized Sweaters for Women Cable Knit Chunky Pullover Sweater

We’ve officially reached the point of the year when it’s time to bust out those big sweaters to beat the chill. Walmart is selling this women’s sweater in a variety of colors for just $24.99. Its loose, slouchy design is perfect for a casual night out or a cozy afternoon at home. And because it’s machine-washable, you won’t have to fuss with dry cleaning.

2. Keusn Women’s Packable Down Jacket

Donning some sort of outerwear is pretty much a constant necessity once winter kicks in. But wouldn’t it be great to buy the special woman in your life a jacket that can pack down small enough to fit in her purse? That product actually exists, and you can find it at Walmart for just $17.58, and it comes in a variety of colors. To be clear, this won’t be the warmest winter jacket you’ll find. But it could be the perfect thing to get the job done on those cool but not totally frigid days.

3. Shop LC Set of 6 Bell Jar Candles

There’s something about the warmth of a burning candle that makes any living room or bedroom suddenly seem that much cozier. Walmart is selling a set of six bell jar candles for $19.18 — enough to place different candles all over the house for a fun variety of scents. These candles also make a great gift for teachers and colleagues.

4. Burt’s Bees Essential Gift Set

Do you know a woman who likes to be pampered but can’t afford the credit card bill that comes with a visit to the spa? This gift set is a fantastic alternative. For just $16.87, it comes with cleansing cream, hand salve, foot cream, lip balm, and body lotion. Of course, if you’re able to pair it with a spa gift certificate, that’s even better!

5. Maxkare 50″ x 60″ Electric Heated Blanket

Sometimes, a regular blanket just won’t do the trick on those super-cold days when your heating system is struggling to keep up. That’s what makes this electric blanket an awesome gift. It comes with six different heating levels and is designed to shut off automatically. It’s also machine-washable so your recipient won’t have to stress about keeping it clean, and it’s on sale right now for $39.99.

These five items are just a handful of many great gift ideas you can find at Walmart. So whether you need the perfect gift for your spouse, mom, aunt, or boss, it pays to spend some time browsing Walmart’s selection to see what you can find.

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.

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