Money Management

A Kansas City jury determined that real estate agents acted illegally. Find out how it could change the way people pay when buying and selling homes. 

If you have ever bought or sold a home, you know that the process generally involves paying a commission.

The seller covers the cost of around a 6% fee, and this money is split between the buyer’s agent and the seller’s agent. Even people who sell their homes themselves typically must offer a commission to a buyer’s agent in order to be eligible to list their property on the Multiple Listing Service (MLS).

This could be changing though, thanks to the verdict in a class-action lawsuit brought by more than 250,000 home sellers in Missouri, Kansas, and Illinois. The suit was against the National Association of Realtors, HomeServices of America, and Keller Williams. Plaintiffs alleged these groups and brokerages colluded to unlawfully maintain high commission rates.

A jury in Kansas City agreed, and the implications could be far reaching for anyone who is selling a home or who is getting a mortgage loan and to buy one.

A court ruling against real estate agents could shake up the housing industry

The plaintiffs who filed suit were a group of individuals who alleged they had to pay substantial commissions just to sell their homes during the period of time when property values rose rapidly between 2015 and 2022. They claimed that the problem lies with a rule called the “cooperative compensation rule.” This rule was made by the National Association of Realtors. It requires all home sellers to make a non-negotiable commission offer prior to listing their home on the MLS.

The MLS is used by online real estate websites, real estate agents, and buyers to find properties. Homes not listed on the MLS are not seen by many potential buyers, so they can be much harder to sell. So as a result of the cooperative compensation rule, sellers basically had to offer to pay an industry-standard commission or around 5% to 6% of the sale price split between buyers’ and sellers’ agents.

The plaintiffs argued that the NAR’s rule elevated prices. They also argued that if it wasn’t in place, buyers’ agents would instead be paid by home buyers themselves (alongside all the the fees and costs they pay to a mortgage lender to buy a home) and would have to compete to offer lower rates. They pointed to other countries with much lower real estate commissions where this requirement isn’t in place.

A jury unanimously agreed and awarded $1.78 billion to home sellers who filed suit. Under antitrust laws requiring treble damages, this could actually be around a $5.36 billion verdict. It could also result in copycat lawsuits being filed by home sellers elsewhere. And it could result in the judge who is overseeing the lawsuit issuing an injunction and banning the cooperative compensation rule nationwide.

What does this mean for consumers?

Some home sellers in Missouri, Kansas, and Illinois will receive a cut of the damages that NAR and the other defendants have been ordered to pay. And sellers in other areas of the country could find themselves part of a class action lawsuit to recover some commission fees of their own.

The broader implications beyond that will depend on whether the judge does ban the cooperative compensation rule. The judge could potentially prohibit the following actions:

Sellers’ agents and home sellers setting commission rates in advance for the buyer’s agent.Sellers’ agents sharing their commission fees with buyer’s agents.The publication of commission rates paid to buyers agents in the MLS.

The judge could also leave the rule in place but require sellers to offer just a penny in commission to buyer’s agents. Or the Department of Justice could weigh in and implement new regulations designed to protect consumers from anti-competitive behavior.

The National Association of Realtors has, however, indicated it will appeal. The NAR claims the current structure is in the best interests of consumers. And another defendant, HomeServices, indicates that it believes the court’s ruling will introduce additional obstacles for buyers and sellers.

However, it’s difficult to see why forcing sellers to agree to a set commission for a buyer’s agent just to be able to get their home in front of buyers is truly in the best interest of consumers.

The appeal could be tied up for several years and, in the meantime, buyers and sellers may find themselves paying lower prices if an injunction or DOJ regulation does limit the ability of real estate groups to collude to keep commissions high. If you’re listing a home for sale soon, it may be worth seeing how this plays out, as you may be able to pay a lower commission on your future sale.

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You can score meal subscription service for as little as $4.99 per meal. Read on to see some of the best affordable meal kit services. 

I’m guilty of defaulting to ordering out when there aren’t many food options in the house — and even when there are. But that’s not always the best choice to eat as healthy as I want, and the cost of ordering out adds up quickly.

That’s why meal subscriptions can be a good choice. You get easy access to a real meal (with vegetables!) and they are typically much faster to prepare because all of the ingredients and instructions are provided. While not exactly cheap, they can be a better choice for your personal finances than frequently ordering takeout.

Here are three meal subscriptions that have all received high marks from some reviewers and won’t break the bank.

1. Dinnerly

Monthly price: Starting at $4.99 per person, plus shipping

Dinnerly offers more than 100 meals to choose from weekly and has an extensive selection of vegetarian dinners. Many of the meals listed on the company’s website are designed to be prepared in 30 minutes or less, which is definitely a prep-time I can get on board with.

Dinnerly doesn’t have printed recipes; instead, you’ll use the company’s app or website to follow cooking instructions. The cheapest you’ll pay for a meal per person is $4.99, but I found a deal on Dinnerly’s website that gives you the first 24 meals for just $2.99 each.

While the cost per serving is affordable, some reviews noted that you may have to add some of your own basic ingredients to complete the meal. Still, reviewers at Good Housekeeping put Dinnerly at the top of their list of best cheap meal delivery services.

2. EveryPlate

Monthly price: Starting at $4.99 per person, plus shipping

There are only 26 meal options to choose from at EveryPlate each week, but the company says it focuses on “tasty value and convenience, not make you a chef.” So if simple, good food is your goal, then EveryPlate may be a good choice.

EveryPlate has meals starting at $4.99 per person, but the company also has one of the best sign-up deals. When I went to the website, I received a promo code to get the first 20 meals for just $1.49 each. One nice benefit of EveryPlate is that meals come with a printed recipe card, including pictures of the meal.

EveryPlate made it to the top of some online reviews, including receiving the Editor’s Choice at CNET for best cheap meal kits.

3. Home Chef

Monthly price: Starting at $7.99 per person, plus shipping

I’ve used Home Chef in the past, and my family and I really enjoyed it. I’m not a great cook, and I found the recipes — which are printed on cards you can put into a binder — very easy to follow. While I’m not currently subscribed to the service, my family still references the recipe cards sometimes to recreate the meals.

Home Chef lets you pick from over 30 different meals every week, with prices that start at $7.99 per serving. While that’s more expensive than Dinnerly and EveryPlate, I found a first-time sign-up deal that gives you 18 free meals, effectively bringing the initial cost to $3.77 per meal.

I have yet to try other meal subscription services besides Home Chef, so I can’t compare them personally. But Food & Wine did a comprehensive review of the best meal kit services and said that Home Chef was best for families because of its affordable price and bigger serving sizes.

How to save money on food costs

If you sign up for a meal subscription service, you won’t save money compared to buying ingredients at the grocery store. But you could balance your meal kit subscription costs by making a few tweaks to your shopping.

For example, my family doesn’t shop exclusively at one grocery store. We switch up where we go each week to maximize discounts and weekly deals. It may not be as efficient as shopping at one store, but it helps keep the grocery bill lower while food prices are high.

We also have a Costco membership we use to buy some groceries in bulk. While Costco isn’t always the cheapest option, buying in bulk makes the membership worth the annual price and we get to stock up on items that would cost more in smaller quantities.

All of this food talk has got me thinking about what’s on the menu for dinner tonight. I better sign up for one of these subscriptions fast — before I end up with another pizza at my door.

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Pet life insurance pays a death benefit to the owner when the pet dies, but it’s not for everyone. Here’s what you need to know. 

These days, it seems like you can insure just about anything. We all know about homeowners insurance and auto insurance, but now there’s also wedding insurance and pet insurance and even pet life insurance. Yes, you heard that correctly. You can take out a policy against your fur baby’s life and collect cash when they die.

But if you think you’ll just insure them for millions and enjoy a nice retirement after they’re gone, you’ll have to keep dreaming. That’s not how these policies work. Here’s what you need to know and how to decide if one of these is right for you.

What is pet life insurance?

Pet life insurance is exactly what you think: life insurance for your dog, cat, or other pet. Just like with life insurance for humans, the policy pays a death benefit to the policyholder when the pet dies. There are two main types of policies: full mortality and limited mortality. Full mortality policies cover the pet’s death regardless of the reason. Limited mortality policies will only pay the death benefit if the pet dies due to a covered reason, like severe weather.

Some policies also cover the theft of the animal. So if the pet is stolen and the owner is unable to recover them, the insurer will also give them the agreed-upon death benefit.

But you can’t just take out one of these policies for any ordinary house pet. Typically, insurers only sell these policies for pets who earn income or are valuable in some way. For example, it might be possible to take out a pet life insurance policy for a police dog because it performs a valuable service and would be costly to replace. Similarly, you could take out a policy on a prize-winning racehorse because it makes its owners money, which they will lose if the horse dies.

How much does pet life insurance cost?

Like all insurances, pet life insurance costs vary depending on several factors. The age, breed, and species of the pet are obviously important. Older pets are typically more expensive to insure than younger pets, and those with major health issues may not be eligible for a policy at all. The type of perils the plan protects against also have a huge effect on the cost.

These policies have the usual deductibles and premiums to worry about. Going with a higher deductible can make monthly premiums more affordable. But it leads to larger out-of-pocket costs in the event of a claim.

Ultimately, the only way to know how much a pet life insurance policy costs is to compare quotes from several providers to see what they can offer. But generally, these policies are pretty expensive. Some may cost up to $900 per year.

Where can you get a pet life insurance policy?

The major life and pet insurers don’t offer pet life insurance. Those interested in this coverage will have to seek out specialty insurers. Some companies that offer these policies include:

The HartfordArk International GroupAmwinsSanger Insurance

You can find others by searching for “animal mortality insurance” online. Searching “pet life insurance” may lead you to pet health insurance policies instead.

It’s not for everyone

Most pet owners don’t have much to gain from purchasing a pet life insurance policy — assuming they can get one at all. Those hoping for some assistance with vet bills for injuries and illnesses should invest in a pet health insurance policy instead. These are more readily available and they’re more affordable too, especially for those who opt for an accident-only plan. It’s pretty easy to compare quotes online, and most companies enable pet owners to purchase a policy within a few minutes.

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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.
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You can get a secured credit card even if you have poor credit or no credit history at all. Learn how these cards are perfect for brand-new credit users. 

It’s really important to earn a good credit score. It can make it a lot cheaper and easier to get a mortgage or a personal loan if you have good credit. You’ll also be able to access better credit cards with generous rewards programs, and will have more choices of where you live, since landlords often check your credit history.

Unfortunately, it can be really frustrating to build credit. That’s because you need to have access to credit to show you can be responsible with it — but most lenders don’t want to give you access to it until you’ve already proven yourself.

Fortunately, there is a simple solution you could try out.

Could a secured credit card help you build your credit score?

If you cannot get a loan or credit card to help you begin building credit, a secured credit card could be one of your best options.

A secured card is a special kind of credit card. Like most credit cards, you are given a line of credit. You’re allowed to charge up to a set amount, such as $250 or $500. But you don’t have to charge that much all at once.

As you charge on your card, you accrue a balance and you are sent a bill each month. If you pay your bill in full when the statement comes, you won’t owe interest. You don’t have to pay the full amount, but you do need to make at least minimum payments. As you repay the money you’ve used for purchases, the credit becomes available to you again. This is called a revolving line of credit.

The big difference between a secured card and a regular credit card is that you have to put down collateral for the secured card. Specifically, you will need to make a deposit in a special account with the credit card company. Usually, this is in the amount of your credit line. So, if you got a $500 credit line, you would need to put $500 into a special account.

The money protects the card issuer against losses. If you don’t pay the card balance, your credit card company can take the money acting as collateral. The card issuer cannot lose (since you can only charge up to the amount you deposited), so it is very easy to get approved for a secured card. Pretty much anyone can get one, even people with a very recent bankruptcy on their record.

Once you have the card, you can make small charges on it each month — being careful to pay on time and keep your credit utilization ratio below 30% (which means you don’t want to use more than 30% of your available credit). Your record of on-time payments will help you earn a good credit score, as will your low credit utilization ratio. Payment history and credit used are two of the most important factors in the credit scoring formula.

How to find the right secured card

Getting a secured credit card is a great way to prove you are a responsible borrower. But how can you decide which credit card is right for you? You’ll want to look for a secured card offering these features:

Reporting to the major credit reporting agencies: This is key because you want your payment history and credit use reported so you can show you’re a responsible borrower.No fees: There are good secured cards out there that won’t charge you fees to be a cardmember.Rewards: Some, but not all, secured cards offer rewards for spending.Access to credit monitoring services: You can use these to track your progress building credit.Ability to graduate to an unsecured card: If your card can transition to an unsecured one, you can get your money back while keeping your card open so you will develop a longer credit history (that’s a positive factor in determining your credit score, too).A low APR: This only applies if you plan to carry a balance at any point.

Research your options today and consider opening a secured credit card if building a better credit score is on your to-do list.

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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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If you want to become a gig worker, don’t neglect useful apps and tools. Find out which tools can help you take your freelance experience to the next level. 

While holding a regular employee job is ideal for many, it’s not the right fit for everyone. Some people do gig work to have more freedom and flexibility in their everyday lives. If you’re already freelancing or considering trying it, you may be looking for tools to help you be more productive and organized throughout your journey.

I’ve been freelancing for many years, so I’ve had time to try various tools. Here are a few of my favorite tools to help gig workers level up their business.

1. Trello

Trello is a freelance project management and task management tool. When you’re a gig worker or freelancer, juggling multiple projects is the norm. Tools like Trello can help you stay organized so you don’t miss due dates or forget about tasks. I prefer digital organization solutions, so I’ve used this tool at many points in my freelance career. If you want to test out this service, Trello offers a free plan. Paid plans start at $6 per month or $5 per month when billed annually.

2. Google Drive

Google Drive is another tool that is perfect for gig workers. It’s a cloud-based file-sharing and file-storing solution that allows you to easily collaborate with others. You’ll have access to useful tools like Google Docs, a word-processing tool, and Google Sheets, a spreadsheet tool. I use Google Drive daily as a freelance writer.

I like to use Google Sheets to organize my freelance income and business expenses. This organizational system makes it easy for me to handle my taxes in the spring. Plus, I feel like I have a better idea of where my personal finances stand throughout the year. With Google Drive, you get up to 15 GB of storage at no cost. If you want more storage and a custom business email, paid plans start at $7.20 per month, or $6 per month when billed annually.

3. Focusmate

If you struggle with staying on track or get distracted when working alone, you may want to try Focusmate. I have ADHD, and it can be a struggle for me to get into the groove. I prefer working in a private environment to minimize distractions, so coffee shops aren’t my ideal work spot. But sometimes, I benefit from having someone nearby as an accountability partner.

Focusmate is a virtual coworking solution. You connect with another person, and both work on your own projects simultaneously. Each person will keep their video on throughout the session but can mute their audio after saying hello. You can book 25, 50, or 75-minute sessions.

I’ve used this accountability tool numerous times and have nothing but good things to say about it. Free subscribers get three sessions a week. If you want unlimited sessions, you’ll need to pay $9.99 a month or $83.88 annually. You can always start with the free plan to see if you like it.

4. Wave

At this stage in my freelancing career, all of my clients send payments to my bank account using their invoicing systems, but there were times when I was responsible for invoicing and collecting payments from my clients. As a busy gig worker, handling administrative tasks like invoicing can be a struggle, but tools like this can save you time and make getting paid easier. Wave was a simple and affordable solution for my needs.

You can create invoices for free and customize them to match your branding. You’ll pay payment processing fees when you get paid, but I found the credit card processing and bank payment fees to be competitive compared to other popular solutions. You may qualify for small business tax deductions, so keep track of the payment processing fee that you pay. For additional guidance, check out our small business resources.

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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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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