Money Management

Selling your home to a cash buyer could help you close within 14 days or less. Read on to discover which companies are buying homes at the best closing prices. 

To sell your home and get the full market value, you’ll have to get a real estate agent to list it on an MLS, hope for a stimulating bidding war, and accept a buyer who will likely finance it with a mortgage loan. The process can take two to three months, but hey — you might get top dollar for your property.

But if you’re looking to sell a house fast — like yesterday — and you don’t mind getting less than market value, you can choose from a number of companies who will pay cash for your home and close within 14 days or less.

Some of these companies are called “iBuyers,” and they’ll generally pay you more. The drawback: iBuyers typically only buy homes that are in great condition, and they’re limited to a few housing markets. For more availability, or for homes that are in worse condition, you might have to sell to a “We Buy Homes For Cash” company, which may give you only 50% of your home’s market value.

Which companies are buying houses? Let’s take a look at the three most popular options.

1. We Buy Ugly Houses

We Buy Ugly Houses is a real estate company that buys distressed and inherited properties in 47 states and Washington D.C. The company operates through its 800 franchises, who will pay cash for your home after assessing its value.

It works like this: You call your local We Buy Ugly Houses franchise and it will send someone to evaluate your home. You’ll get a cash offer instantly, either on the spot or a few days after the assessment. You can then choose to accept the cash offer, or walk away. Like other “We Buy Homes For Cash” companies, you won’t be able to negotiate.

Since the company can give you an offer between two and three days, you can often have cash in hand within two weeks. Better yet: The company doesn’t charge any fees and you don’t have to pay real estate commissions.

We Buy Ugly Houses doesn’t have a hard-and-fast rule for how much it offers for homes, but numerous real estate websites — like Upnest — believe you can get roughly 50% to 70% of your home’s after repair value in cash. “After repair value” (ARV) is simply the value of your home after repair costs are factored in.

For instance, if your home is worth $300,000, but needs roughly $15,000 in repairs, We Buy Ugly Houses might offer you between $142,500 and $199,500 in cash.

2. Opendoor

Opendoor is an iBuyer company that operates in 47 metropolitan areas, like Atlanta, Denver, Houston, San Diego, and Washington D.C.

The company buys homes for cash, but its criteria might be stricter than We Buy Ugly Homes depending on your area. Often, Opendoor will only buy homes that are in great condition. They don’t typically buy short sales, foreclosures, or distressed properties — unless it’s in a market with high investment potential.

To start the process, send a photo of your home along with a description of its features, and Opendoor will give you a preliminary offer. This isn’t your final offer. If the initial offer sounds good to you, Opendoor will send someone to inspect your home. After the assessment, Opendoor will send you an adjusted offer based on damages or needed repairs.

The company won’t give you market value for your home, but it can get close. Opendoor charges a 5% fee plus closing costs (1% to 3%), so you’re really not paying any less than working with a real estate agent. But you can typically have cash in hand between 14 and 60 days, and you won’t have to list the home on an MLS.

3. Sundae

Sundae isn’t an iBuyer or a “We Buy Homes For Cash” company. Instead, it’s a marketplace that connects owners of distressed or dated homes with property investors.

It works like an auction: you list your home on Sundae’s market platform and property investors place bids. The auction typically lasts only a few days, after which you can review each offer and decide if it’s the right price. Unlike other bidding platforms — like eBay — you don’t have to accept the highest offers. You can back out at any time.

To get started, Sundae will send a professional to inspect your home and determine a good starting price for the auction. If you accept, Sundae will then list your home on its marketplace and drive investors to it. After you accept an offer, Sundae will give you an advance of $10,000 to close.

The company claims you can close between 10 and 60 days. It also doesn’t charge sellers any fees, as its investors pay monthly dues to join its membership programs.

Should you sell to a cash buyer?

Selling to a cash buyer could mean selling your home for less than what it’s worth. But it might be ideal if you own a dated or distressed property and you want to get rid of it as quickly as you can. It could also be a good solution if you inherited property and you don’t have time to sell it with a real estate agent. If you need to sell a house in a hurry, consider these three companies.

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Some monthly expenses are easy to overspend on. Here’s one that Dave Ramsey pointed out, and how you can keep it from damaging your finances. 

A crucial part of reaching your financial goals is not overspending on your regular expenses. When you spend wisely, it helps you avoid debt and frees up more money to put toward savings and investments. While everyone has quite a few monthly expenses to manage, there’s one in particular where people often overspend, according to Dave Ramsey.

Here’s where Dave Ramsey says you should watch out for overspending

Dave Ramsey recently said, “Food is one of the easiest budget categories to overspend on. If you can get that under control each month, your entire budget can change.”

What makes food such an easy category to overspend in? For starters, it tends to be one of the largest regular expenses people have. Among American households’ average monthly expenses, food is the third-largest at $691 per month ($8,289 per year) as of 2021. It accounts for 12% of people’s average spending and 11% of income. Only housing and transportation were more expensive on average.

It’s also not a fixed cost, and that’s why it’s harder to manage than housing and transportation. You probably pay the same amount every month for housing, a car payment (if you have one), and auto insurance.

Food costs, on the other hand, can vary heavily from month to month. If you go out for dinner more than usual one month, you could end up spending hundreds of dollars more. The groceries you buy, and the grocery stores you shop at, also make a big difference in how much you spend. And I’d be remiss not to mention inflation. By February 2023, food prices had increased by 9.5% over the previous year.

How to spend less on food

Food may be easy to overspend on, but the good news is that it’s also an easy place to reduce your spending. With a few adjustments here, you could save more money to put toward your personal finance goals.

Start by limiting how often you go out to eat. Since a meal at a restaurant is much more expensive than preparing something at home, dining out quickly adds up. This doesn’t mean you need to stop going out entirely and not have a social life. Just figure out what works for your spending plan and money goals, and see if you can swap out some restaurant hangouts for low-cost alternatives.

When it comes to grocery shopping, there are several great ways to cut costs. Here are some tips to try out:

Always shop with a plan. Make a grocery list before you go to the store and stick to it. You’re more likely to stay on budget and less likely to forget things this way. Meal planning is a good way to know exactly what you’ll need at the store.Choose budget-friendly recipes. You don’t need to go on a beans and rice diet to save on groceries. There are tons of websites, apps, and cookbooks with all kinds of inexpensive and tasty meal ideas.Keep it simple — one grocery store, one day per week. Shopping more often usually means spending more, so visiting multiple stores or shopping more than once per week can both lead to a higher grocery bill. If you want to save time and money, pick one store you like and try your best to do most or all of your shopping there.Pay with a grocery credit card. Many of the top grocery credit cards earn 3% to as high as 6% back on your supermarket spending, so they’re a helpful savings tool.Save more with a coupon app. These allow you to earn more back or clip digital coupons and redeem them at checkout.

You don’t need to be too strict with yourself as you do this. You can follow these tips all the time if you want, or you can pick and choose. They work if you’re happy with your grocery bills already and would just like to save a little extra, or if you’re looking for a complete overhaul of your food spending.

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High-yield savings accounts have many benefits, but also a few potential drawbacks. Read on for Dave Ramsey’s top cons for these accounts. 

High-yield savings accounts can be a great place to keep some of your money.

These accounts pay a better interest rate than most savings accounts. And, they are typically FDIC-insured so you don’t have to worry about incurring any risk when you put your cash into one of them. This is unlike a brokerage account, where you invest your money and face the potential for losses if your investments perform poorly.

But, while there are benefits to high-yield savings accounts, there are also some big disadvantages. Finance expert Dave Ramsey identified three downsides, so check them out — along with some ways to overcome them.

1. The rate they pay makes them a poor long-term investment

The first big downside Ramsey points out is that long-term savings accounts aren’t very good at helping you ensure your money is growing in value, or at least retaining its value even as the price of goods and services goes up.

“Though high-yield savings accounts provide a much higher rate of return than traditional savings accounts, they’re still lousy for long-term investing,” Ramsey said. “Even if a bank offers a rate of 3% or more, it doesn’t come close to the 10% –12% rate of return that good mutual funds with long track records of success have historically averaged.”

Ramsey explained that you should put money into a brokerage account if you won’t need it for at least five years. And, he’s absolutely right about that. Money only belongs in a high-yield savings account if you will need to access it quickly and cannot afford to wait out a market downturn if one happens shortly after you invest.

To avoid this downside of a high-yield savings account, be careful how much you keep in this account type. You should have your emergency savings in a high-yield savings account as well as money for purchases you plan to make very soon, such as for an upcoming vacation. But retirement savings and any other money you’re putting aside for longer-term goals should be in a brokerage account and invested in assets that provide a better return on investment.

2. Your interest rate can fluctuate over time

Ramsey also warned that while your account may pay a high rate when you first open your savings account, this may not be the case over the long-term.

“Did you find a great high-yield savings account with an online bank offering a 3.5% interest rate? Well, it may not last long. Banks can change their interest rates for savings accounts whenever they want, which means your rate isn’t a long-term (or even short-term) guarantee,” Ramsey warned.

You can easily overcome this downside, though. You can simply check your bank’s rate every few months or so and compare it to what competitors are offering. If you find an account with a noticeably better rate, transferring your money is usually done easily with a few clicks online.

3. You’re likely to find the best accounts at online-only banks

Finally, Ramsey said the last big downside of high-yield savings accounts is that you’re likely not going to have access to a brick-and-mortar location.

“They’re usually online only,” Ramsey said. “But if you like being able to talk to your bankers face-to-face and make deposits in person, then getting a high-yield savings account through an online bank may not be your cup of tea.”

This isn’t a big downside to worry about, though, since you can do your other banking at a local bank if you want — and you’re likely to have much more interaction with the bank where you have your checking account rather than your savings account. After all, this is where your paycheck will be deposited and your bills will be paid from.

So, while these are downsides, none of them are serious enough that they should prevent you from putting money into a high-yield savings account. And all of them can be easily overcome with just a minimum amount of effort on your part.

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Women are losing some of the gains we made in homeownership rates. Read on to learn what to do if you’re a woman looking to buy your own home. 

After a misadventure with homeownership over a decade ago, I’ve got my sights set on buying a home again, perhaps next year. I’ll be making the purchase on my own, as my finances are completely solo, and until recently, a growing number of women just like me were also buying homes alone.

Recent data from Zillow notes that in 2016, just 19.4% of young single women owned homes, as compared to 29.6% of young single men, a difference of more than 10%. In the ensuing five years, however, this gap shrunk to just 1.8%, as women made gains in the workforce and income. By 2021, 28.6% of young single women owned homes.

Unfortunately, the last few pandemic years have cut women’s progress in home buying (thanks to more women having to leave the workforce to take on caregiving duties), and as a result, in 2022, the homeownership rate among young single women stood at 24.5%. This is disappointing news. The good news, however, is that if you, too, are a woman hoping to buy a home of your very own, on your own, there are a few things you can focus on to make it easier.

Save, save, and save some more

I don’t have to tell you that buying a home is an expensive endeavor. This is even more apparent when you’re planning to get that mortgage loan based on just your own income.

While it’s not a strict requirement that you make a 20% down payment, you will have higher mortgage payments if you don’t, as mortgage insurance will be included (this protects your lender if you buy with a lower down payment) until you get to 20% equity. You’ll also need to save money for closing costs (often 2% to 5% of your home’s purchase price). And it’s a solidly good idea to leave yourself with some cash savings even after you’ve closed on a home, in the form of a maintenance fund. Why? If something breaks in your new home, it’ll be on you to get it fixed.

Beyond these costs, you’re also going to need to pay for a move from your old residence to your new home, and you might want to have the ability to perhaps buy new appliances or maybe some lovely new furniture for the home. In short, you’re going to want to save a good chunk of money before attempting to buy.

Focus on improving your credit

The other part of the home-buying puzzle is your credit score. And again, prospective mortgage lenders will only have your financial background to go off when deciding to approve (or deny) your application, so your credit definitely counts here.

Get a copy of your credit report (free every week through 2023), and comb through it for errors or old delinquent accounts that should have been removed by the credit bureau. If you find some, you can file a dispute. Having these removed will boost your credit score.

If you can pay down existing debt (especially credit card and other high-interest debt), that will also increase your credit score ahead of applying for a mortgage. Instead, you can save the money you would have been paying toward your debts for your down payment or that amazing purple sofa you’re hoping to get for your new living room.

Consider buying in a lower-cost area, if possible

Finally, if you don’t have your heart set on buying a home in an expensive area, looking at other cities for better home prices could be a good move for you. I’m pretty fortunate that all my travels in my old career eventually brought me to a part of the country with reasonable home prices — there’s no way I’d be able to buy a home alone (or possibly even with a partner) in certain areas.

The Zillow report notes that the highest share of affordable homes for single women buyers are found in Detroit, St. Louis, and Pittsburgh, for example. Do some research to find the city that fits your lifestyle — and your home-buying budget.

Higher mortgage rates and lost gains thanks to COVID-19 have made buying a home more difficult for a lot of women, but if you focus on saving money and boosting your credit, and perhaps consider lower-cost cities, you may just find yourself saying “Home, sweet home” someday soon.

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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 Zillow Group. The Motley Fool has a disclosure policy.

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Are you looking for a new credit card, but are finding it difficult to compare options? Find out how the Consumer Financial Protection Bureau wants to help. 

Credit cards may be easy to use, but finding the right one can take time and effort. With so many credit cards available, it can be challenging for consumers to know which card they might qualify for or which is best for their needs. The Consumer Financial Protection Bureau (CFPB) wants to make it easier for consumers to compare credit card product offerings. Soon, new data could help you make a more informed choice when applying for a credit card.

Additional information will be collected from card issuers

The CFPB collects information from credit card issuers semi-annually through its Terms of Credit Card Plans (TCCP) survey. The agency recently updated this survey to make it easier for consumers to compare cards. With these updates, the CFPB intends to create a neutral data source so consumers can find the best rates and products.

Through the TCCP survey, the CFPB collects and publishes the product data on credit cards from the largest 25 issuers and a sample of at least 125 additional card issuers. The agency will expand the number of issuers included in the survey. This new data will be collected through April 20, 2023 and will be available to consumers at a later date.

The new survey updates will make it easier for consumers to identify the following when comparing credit cards.

Lower interest rates

Credit card interest rates can significantly impact your personal finances, especially if you carry a balance. For many consumers, expensive credit card interest charges make it harder to get out of credit card debt. With these updates, it will be easier for consumers to find credit cards with lower interest rates to minimize the extra fees they pay when using credit cards.

Realistic interest rates

The updated survey will ask additional questions about annual percentage rates (APRs). Credit card issuers will need to report the minimum, maximum, and median APR offered by certain credit score tiers for credit cards that offer different APRs dependent on credit score. This change will help consumers get a better feel for the interest rates they might qualify for before applying for a new card.

Credit cards that fit their best needs

The top 25 credit card issuers will now be asked to provide information about all their credit cards — not just their most popular products. All other financial institutions can voluntarily provide information about multiple products.

Issuers will also be asked to provide information about promotional terms of balance transfers, introductory rates, and cash advances. With additional data like this, consumers can more easily choose cards that meet their needs.

Consumers can review survey findings

Before adding a new credit card to your wallet, it’s best to do thorough research to understand the card’s terms, including fees that could impact your finances. It’s also a good idea to spend some time comparing multiple product options.

The CFPB maintains historical data from the TCCP survey from as far back as 1990. Consumers are encouraged to review this data to make a more informed decision when shopping for a new credit card. The latest survey updates will give consumers even more information so they can settle on the right credit card for their needs.

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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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To make sure we don’t overspend on vacation, we let the kids pick one toy only at the end of each trip. Read on to find out why that’s been so helpful for us. 

My family and I love going on vacation and we’re always happy to give our credit cards a workout to buy flights, theme park tickets, and hotel nights. But, once we go on vacation, we try to be reasonable with what we spend in order to avoid draining our bank account and ending up regretting it.

In order to help us keep spending down on our trips, we’ve made one simple rule that we never break. Here’s what it is.

This is our unbreakable vacation rule

The one rule that my husband and I made on vacation a while ago has to do with spending for our children.

See, when we were going places, my son would end up asking for items at just about every store that we went to. If we were away for a week and went to several theme parks or other activities like zoos, there would be multiple gift shops we’d end up funneled into (obviously with the goal of getting us to spend money).

We didn’t want to turn every outing into a fight and since he’s only 3 years old, he doesn’t have much of a concept of delayed gratification. We had to decide on an approach that made sense. And, the way we did that was to make one unbreakable rule. On each vacation, he gets to pick one toy. And, we will always buy that toy on the last day at the end of the trip.

Here’s why this rule works so well for us

By making this simple rule, my son knows what to expect — and he has something to look forward to throughout the trip. He is confident he will end up getting to go home with something that he loves so he doesn’t feel deprived. And he can spend the trip looking out for the perfect item that he’s going to make his own.

Throughout our vacations, we’ll take pictures of the different items that he may want to buy. We talk about which purchase he’s going to make and how exciting it will be for him to finally select his perfect item. Then, on the last day of the trip, he gets to select the toy that he has decided on after careful consideration.

We make sure we’re only offering toys at places we can feasibly go back to, but it’s been pretty easy to make that happen since he usually wants one of the more recent toys he’s seen. And, if he happens to find something at a gift shop from someplace we can’t return to, I can pretty much always find a comparable item online to buy so he gets what he wants without us having to trek back miles.

This rule has worked well for us with our son, and we’ll do the same for our daughter as she gets older and starts to want toys as well. Now, our trips don’t turn into fights at gift stores, but instead we get to have fun planning which exciting toy he’ll buy — and our wallets get a rest until we make that special purchase on our final day of our trip.

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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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