Money Management

A low appraisal could derail a home sale, but the first appraiser may not have the final word. Learn when it’s worth hiring a second appraiser. 

A home appraisal is an expert’s opinion of how much a home is worth. Appraisals help lenders decide if the home is worth as much as its asking price and often influence a lender’s decision on how large of a mortgage loan can be extended to home buyers.

Because of how critical appraisals are to mortgage lenders, they can become a major roadblock when the appraisal comes back lower than the asking price. In this situation, buyers may have to cover the difference with a bigger down payment or renegotiate the sale price with the seller. However, in some cases it might be a good idea to request a second appraisal on the home in question, especially if you believe the first appraiser was wrong.

When it might be a good idea to get a second appraisal

Second appraisals aren’t rare, and might in fact be requested by a fair-minded lender who finds problems with the first. But if your lender is about to roll with an appraisal you disagree with, you can do a few things to demonstrate that your home is worth more.

One is to request a copy of the original appraisal and inspect it with your real estate agent. It’s entirely possible that an appraiser made a mistake — such as miscalculating square footage or omitting new renovations — especially if it was a desktop or drive-by appraisal. With these types of appraisals, an appraiser doesn’t enter your home and may have misjudged aspects of your property or overlooked entire sections of it, such as a newly renovated basement.

If the appraisal report checks out, you can still question it by asking your agent to run new comps. Comps (or “comparables”) are recently sold properties that share features with the home in question and are located in the same area. For example, three houses of roughly 2,000 square feet, three bedrooms, and one-and-a-half bathrooms might be considered comps for a fourth house with the same qualities. If the comps on the home in question have sold for higher values, that’s a good sign the first appraisal was off.

To be fair, appraisers typically run comps, too. But if an appraiser is less familiar with a given area than your real estate agent, they may have chosen weak comps.

Finally, I would also get a second appraisal if you think the original was influenced by racial bias. It’s not uncommon for homes within communities of color to receive lower values than identical houses located within white neighborhoods. In fact, according to research by Dr. Junia Howell, homes in white neighborhoods often enjoy nearly double the value of identical homes in communities of color. If you believe a discriminatory appraisal has devalued your home, you can request a second appraisal, as well as contact the Property Appraisal Valuation Equity (PAVE) taskforce to connect with a fair housing specialist.

How to request a second appraisal

If you have solid evidence to contradict the original appraisal, you can ask the lender to reconsider the home’s value. Also known as a “reconsideration of value” or “ROV,” this process involves presenting the lender with facts — such as a list of more accurately priced comps or showing omissions or errors within the first appraiser’s report — to justify getting a second appraiser’s opinion.

If the evidence is compelling, most top-rated mortgage lenders will approve the second appraisal request and hire another appraiser. Unfortunately, lenders are probably not going to foot the bill for a second appraisal, even if the first appraiser was their choice. More likely than not, the seller and home buyer will have to work out a deal — splitting the cost, for instance, or adding it to a seller’s concessions.

Even if a second appraisal slows down the home-buying or selling process, it might be worth the hassle to get an accurate valuation of your home. Sticking with a lower appraisal could mean selling a home below the desired price, or forcing the buyer to walk away simply because they don’t have enough money to cover the difference. Talk with your real estate agent to get their perspective, but if you think the appraisal is wrong, investigating their report or running your own comps could help you get a fair valuation of your home.

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Costco may stock thousands of items, but there are some that are also worth making the trip to buy. Here are five of them. 

I’ve had a Costco membership since the U.S. invaded Grenada (1983, for all you history buffs). Through the years, I’ve seen plenty of my favorites come and go. However, there are some items I can count on to be available anytime I shop. Not only do these five products stick around, but they are legitimately worth every penny I pay.

1. Bed sheets

If you happen to notice that people you run into seem a little crabby, it may be because they’re not giving their bodies enough time to rest. According to Gallup, Americans sleep, on average, 6.8 hours a night. That’s one hour less than we slept in 1942, and less than the seven to nine hours recommended by experts. You know how toddlers fuss and stomp their feet when they’re tired? We adults do the same thing.

All that to say, sleep is vital, and because I know how miserable I am when I cheat myself out of rest, I’m all about having a comfortable bed. For me, a comfortable bed begins with a great set of sheets.

Costco is where it’s at when looking for soft, comfortable sheets that won’t empty your checking account. For example, Costco’s Hotel Signature 800 Thread Count 6-Piece Queen set is $100. What’s great about 800 thread count sheets is that they’re soft and dense, two great features if you’re looking for luxury.

In comparison, Amazon’s Hotel Signature 800 Thread Count set is $135.

You might not always find the set you want at Costco, but it pays to check. Besides, if you’re in the store, you can feel around until you find the ones that make you want to crawl into bed for some shut-eye.

2. Rotisserie chicken

There are plenty of reasons shoppers snap up Costco’s delicious rotisserie chicken. For one, they’re perfectly seasoned, and at roughly three pounds, they can feed a family. Oh, and they’re also only $4.99. What’s not to love about serving a picture-perfect chicken rather than slaving over a hot stove? Heck, a few aisles away, you can pick up all the sides you need to round out the meal.

To give you an idea of what a bargain these are, we check a couple of other stores famous for their ready-to-serve rotisserie chicken. Jewel-Osco’s version (which is also delicious) is $6.99, and Walmart’s is $6.97.

3. Kirkland Signature Flex Tech 13 Gallon Kitchen Trash Bag

You know what I can’t stand? Paying for trash bags. The idea of handing over money for a product that’s going to, literally, end up in the trash is more than my savings-obsessed heart can handle. Even worse is when a trash bag leaks all the way from the kitchen to the garage.

With that out of my system, these Flex Tech bags truly are the best. You can get 200 bags for $21.50. That’s less than $0.11 per non-leaky bag. And when they say “flex,” they mean flex. These things can hold far more than you might expect, which is what I want.

In contrast, Walmart’s Great Value trash bags cost a little over $0.15 a piece. Home Depot’s Flex Pro 13 gallon bags are over $0.13 each, and the Amazon Basic Flextra trash bags run $0.20 a piece.

4. Kirkland Signature Baby Wipes

My boys graduated from college and started families of their own years ago, and yet I continue to purchase baby wipes. For me, they’re the Swiss Army knife of quick cleanups. For example, last weekend, my husband and I visited family in a nearby state. As we were driving home, he spilled coffee all over his pants.

No problem. Cleaning up was as easy as reaching behind the passenger seat for a package of baby wipes. They’re just wet and thick enough to clean a mess. Wet wipes are also great for cleaning sticky fingers, wiping down dogs who smell a little too “earthy” after rolling in the grass, and even cleaning mud off floor mats.

And here’s the deal: You get 900 baby wipes for $22 at Costco. That’s less than $0.025 each.

5. Shelled pistachios

People have been eating pistachios for thousands of years. In fact, archaeologists believe mankind began eating them as early as 7,000 B.C. However, it wasn’t until the mid-19th century that they came to the U.S.

As long as your stomach can handle the pistachio seed, there are tons of health benefits, including:

High levels of potassium and unsaturated fatty acids, both with antioxidant and anti-inflammatory properties.May lower your chances for cardiovascular disease.Full of fiber and minerals.Can make you feel fuller longer.Adds good bacteria to your gut.

Plus, you don’t even have to shell them yourself because it’s already been done for you. If you’re a snacker like me, pistachios can be a healthier option.

Kirkland Shelled Pistachios cost a little under $0.71 per ounce. At Walmart you’ll pay $0.98 an ounce, and at Target you’ll shell out $0.96 an ounce.

Naturally, saving money is important, but it’s not the only consideration. Your favorite Costco items are likely to be the things you use regularly and can’t imagine buying anywhere else because they work so well for 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.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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You have dozens of credit cards to choose from. Read on to learn the pros and cons of two popular types of card. 

Choosing a new credit card can be fun. One of the sweet credit card perks you can snag is the ability to earn cash back as a percentage of purchases you make. And another is receiving a period of 0% APR, meaning you won’t have to pay interest on your purchases for as long as 21 billing cycles after opening a new card. Given that the average credit card interest rate is 24.52% as of this writing, that’ll save you a chunk of money.

So which one should you go for? It helps to pinpoint how you want to use the card before you apply. Let’s take a look at a few situations and see whether a cash back rewards credit card or a 0% APR credit card might be a better fit.

You need a credit card for ongoing expenses

If your hope in opening a new credit card account is that you’ll use it for your everyday expenses, a cash back credit card can do great things for you. What’s really cool about these cards is that they exist for many different kinds of spending, so you can choose one that helps you maximize the cash back you earn. For example, last fall I got my first grocery credit card. I love to cook, and my grocery store spending is a large part of my monthly budget, so getting this card has been a game changer.

Consider your own everyday expenses when picking the right card for you. And remember that it’s best to pay off your card every month, or else the interest charges you’ll incur on your balance will more than eat up the cash back you receive.

Verdict: Opt for a cash back card

You need a credit card to finance a big purchase

Want to make a big purchase but don’t have the cash in your checking account to cover the cost in full? A 0% APR card is tailor-made for this situation because you’ll get a period of time (sometimes as little as six months, but perhaps as much as 21 months) to pay off the charge without paying interest.

There is one downside, however: Don’t assume that the card issuer’s minimum payment due will be enough to pay off your purchase before you earn interest on it. Let’s say you spend $800 on a new washing machine and get a full year (12 months) of 0% APR, but your minimum payment due every month is only $50. Paying only $50 per month for 12 months would leave you with a $200 balance remaining when interest comes due (12 x $50 = $600). Instead, divide $800 by 12, and you’ll come to an actual minimum payment of about $67 per month. Pay that for 12 months, and you won’t owe interest.

There is one instance where a cash back card might be good for a big purchase, and that’s when you have the cash saved to pay the purchase off right away and earn a big chunk of cash back in the process.

Verdict: Could go either way, but edge to 0% APR card

You need a credit card for emergencies

Let’s say you want to add a new credit card to your stash to have in case of emergencies. Ideally, you’d have an emergency fund for unplanned expenses, but sometimes life (and a lower salary) stands in the way of that, so I get it — and sympathize. In this instance, you could opt for either type of card, but I’m betting that you’d rather not risk having to pay interest on surprise bills. A 0% APR card with a long introductory rate period is probably the best fit here.

Verdict: Could go either way, but big advantage to 0% APR card

You need a credit card to help you pay off other debt

Finally, you might want a new credit card to help you tackle other debt in the form of debt consolidation. In this situation, a special type of 0% APR card is the way to go. The best balance transfer cards come with a long period of 0% interest and a smaller balance transfer fee (a percentage of the debt you’re transferring to the card). If you have a plan to pay off your debt, using this method can save you money.

Verdict: 0% APR card, hands down

As you can see, it’s important to do some thinking (and research on the best credit cards) when it’s time to add a new card to your wallet. Credit cards are a useful financial tool if you watch out for interest and use the right card for a given situation.

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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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Tax season is over for 2023, but it’s worth thinking about taxes all year long. Read on to learn what you should ask when you hire someone to file yours. 

It’s likely that you were ready to wave tax season goodbye a few months ago. Rounding up forms and trying to get in touch with your accountant (or going through the tax-filing process on your own) isn’t really anyone’s idea of fun. But you can make tax season a lot easier on yourself by keeping on top of your tax concerns at all times of the year and looking for the right tax preparer.

Sure, you can file your tax return on your own — there are a lot of great options for tax preparation software out there, after all. But if you have a complicated tax situation (say, you’re a small business owner) or would just rather outsource this aspect of your personal finances, there’s no shame in hiring someone.

Summer is actually a great time to find an accountant because we’re far enough away from the next tax season that accountants and other tax preparers likely have time in their schedules to talk to potential new clients, just like you! When you contact one, here’s what to ask so you’ll know you’ve found the right person.

1. What are your qualifications?

There are different types of tax preparers, and it’s worth asking about education, training, and certifications when you’re interviewing one. The IRS notes that any tax professional who has a PTIN (IRS Preparer Tax Identification Number) can prepare and file a federal tax return for you, but consider your needs before just accepting this bare minimum.

For example, a CPA (Certified Public Accountant) is licensed by the state, has completed college-level education in accounting, and must pursue ongoing education. EAs (Enrolled Agents) are licensed by the IRS itself. Both of these types of tax professionals will be able to represent you as their client to the IRS, in case you were audited. In short, you want to be sure you’re hiring a tax preparer with the right kind of experience and training to handle your taxes, especially if you have a complicated filing situation.

2. Do you have experience filing returns in my state and locality?

It’s important to hire someone who is familiar with the tax laws unique to your state, especially if you live somewhere that requires you to file a state tax return alongside your federal taxes. And you should also ask about local or county considerations.

As an example, I work with a CPA who lives in my state, but in a different county. Some counties were given a tax extension for filing this year due to a winter storm. My county was not on the list, but my CPA’s county was, and I had to reach out in a panic and ensure that he realized this and still needed to file my taxes by the original April 18 due date.

3. What documents and information do you need from me?

A good tax preparer will be able to supply you with a list of various documents and info they’ll need to complete your return, such as W-2s or 1099s from your employer (or clients, if you’re a freelancer), 1098s for interest statements, copies of past returns, your checking account number and bank routing number, and so on.

Also ask how you’ll be submitting these. You might need to mail them in if your tax preparer is old school, or you could be asked to fax them, scan and email them, or even upload them to a documents portal on the tax preparer’s website.

4. How do you like to communicate?

Remember how I said that taxes should be a year-round consideration? Well, it’ll certainly help in this regard if you can reach your tax professional at any time during the year. Ask how they like to communicate (phone, email, etc) as well as how often you should expect them to be in touch. If you’re a business owner or freelancer, you’ll have to pay estimated quarterly taxes, so get in the mindset of communicating more frequently with your tax preparer to stay on the right track with your tax situation.

5. How will you help me lower my tax liability?

This is an absolutely crucial question. A good tax preparer will stay abreast of tax law changes and also your changing financial situation, and be able to advise you of ways you can pay what you owe and not a penny more. And remember, you actually don’t want a big tax refund because it means you overpaid and gave Uncle Sam an interest-free loan. With how expensive everything is these days, you should want your paychecks to be as flush as possible.

6. How do you determine your fee?

Ideally, the fee you’ll pay your tax preparer is based on how complex your returns are to complete. It’s a red flag if a tax preparer intends to charge you a percentage of your refund, as that’s an incentive for them to find ways to claim credits and deductions you might not be entitled to.

April is in the rearview mirror, but keep your taxes top of mind year round to stay ahead of your obligations. Finding the right tax preparer can help, if you ask the right questions.

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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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Costco has excellent deals on sheds. But are they worth the low prices? Find out if Costco sheds are a good deal. 

Most of us know Costco by its bulk quantities, substantially low prices, great travel deals, and, yes, its hot dogs. But what you might not know is that Costco also sells wood and plastic sheds at lower-than-average prices.

While its sheds aren’t for everyone — particularly those who have no interest in building them — it can present a low-cost alternative for those looking to declutter their basements and garages. With that in mind, here are a few things you should know about Costco sheds.

Most Costco sheds come as kits

Most Costco sheds are delivered to your home pre-assembled as flat-pack kits. That means, it’s up to you to lay a foundation, build the shed on top, attach it with anchors to the ground, paint it, and roof it with shingles.

Reviewers on both Costco’s website and Reddit claim the assembly is straightforward but isn’t something most novices could pull off. Sheds require half a day to a full day to assemble (if not more), and you’ll need more than one person, ideally three. Some Costco sheds have assembly videos on YouTube, but even so, you might need practical experience to build a shed that’s level and sturdy.

Each shed will come with instructions and hardware, but the power tools you’ll need to supply on your own. The shed’s manufacturer might give you instructions on how to lay the foundation, either with concrete or wood. Since the materials to lay a slab are extra, you’ll need to factor these into your total cost. To give you some perspective, the cost of a concrete slab, according to Home Advisor, is about $4 to $8 per square foot. That means, for an 8 x 12 shed with a square footage of 96, you could pay about $384 to $768 for a slab.

That said, some Costco sheds include an assembly option. When you buy these sheds, Costco will outsource the assembly to an installation company, who will schedule the assembly and do it for you. These sheds cost more, but might still be cheaper than hiring contractors on your own.

Costco sheds are close in price to Sam’s Club, but generally lower than Home Depot

Costco sheds are low priced, but they’re not always the cheapest. In fact, many of Costco’s sheds are on par with comparable ones sold at Sam’s Club, though generally they’re better priced than what Home Depot sells. Here’s a quick breakdown of similar sheds found at the three stores:

Based on this, Costco appears to be the best place to buy a shed. But I wouldn’t assume it always has the lowest prices, especially if Sam’s Club or Home Depot is having a sale. For instance, Home Depot is currently selling a 12′ x 10′ Cypress wood shed for $2,414, which would be cheaper than what the two warehouse retailers are offering right now.

You can take back your shed for a full refund at any time

The good thing about a Costco shed is that it falls under the company’s generous 100% satisfaction guaranteed return policy. That means, if your shed doesn’t meet your expectations, you can return it for a full refund at any time.

In summation, Costco sheds are reasonably priced and have good customer reviews on Costco’s website. The downside is that you’ll have to assemble the shed on your own, which might add a time cost that is almost as high as paying for assembly. Check out Costco’s competitors — like Sam’s Club, Home Depot, and Walmart — for sheds of the same dimensions and see if Costco is truly the best fit for your personal finances.

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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 positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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