paying cash http://www.wisebread.com/taxonomy/term/9443/all en-US 6 Signs a Seller Should Pass on a Home Offer http://www.wisebread.com/6-signs-a-seller-should-pass-on-a-home-offer <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-signs-a-seller-should-pass-on-a-home-offer" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/loan_for_house_concept.jpg" alt="Loan for house concept" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>There's no way to predict how long it'll take to sell a house. I'm in the process right now, and it's excruciating. When you get an offer from a buyer, your first inclination may be to seize it. The sooner you accept an offer, the sooner you can move into a new place, right?</p> <p>But not every offer is a good offer &mdash; and if you accept the wrong one, the deal could collapse (which has happened plenty of times in my amateur real estate dealings). Learning how to recognize the red flags of an iffy buyer is the best way to protect yourself.</p> <p>Here are six warning signs to consider before accepting an offer on your house.</p> <h2>1. Buyer isn't preapproved</h2> <p>There's no rule that says a buyer must be preapproved before submitting a bid. But when a person has taken steps to secure a mortgage loan, you know you're dealing with a serious buyer.</p> <p>On the other hand, if you receive an offer from a buyer who hasn't met with a lender, you don't know if they meet the requirements for a mortgage. If you accept this offer only to learn that they can't get financing, you're back to square one.</p> <h2>2. Buyer is inflexible</h2> <p>Be wary of buyers who have nonnegotiable time constraints for closing and moving into the home. A buyer may want a quick close, which isn't a bad thing if you already have another place. But if it doesn't complement your own timeline, you could end up living with family, or worse, in a hotel, which chips away at money that could go toward your new home.</p> <p>Then again, a buyer may not want to take possession of the house for 60 or 90 days. This can delay closing on your next property, and if you've already signed a purchase agreement for another property, you could end up juggling two mortgages for a couple of months. Ideally, you should work with a buyer who's able to close and take possession of the house around the same time you're scheduled to close on your new property.</p> <h2>3. Buyer's offer is contingent on selling their house</h2> <p>If a buyer has yet to sell their current house, they may submit a purchase agreement that's contingent on the sale of their home. Accepting this offer is tempting, especially if your property hasn't had a lot of interest. But it's a risky move.</p> <p>You don't know if or when the buyer's home will sell. If the buyer's property doesn't sell within the agreed upon time frame, you'll have to cancel the purchase agreement. This wastes time and you could potentially miss out on other offers.</p> <h2>4. Buyer offers an amount above list price</h2> <p>A buyer who has a strong interest in your property might submit an offer above your list price. This is good news for your wallet, but you could run into appraisal problems if the offered price is more than your home's value.</p> <p>As a rule of thumb, a bank will only lend up to a home's appraised value. If your list price is $200,000 and your home's worth $205,000, yet you receive an offer for $210,000, the buyer's mortgage lender will not approve financing unless the buyer pays the difference between the sale price and appraised value out-of-pocket.</p> <p>An appraisal issue isn't the end of the world, but it's a hassle because you have to renegotiate the sale price. To avoid this hang-up, know your home's market value and select offers within this range.</p> <h2>5. You receive an offer from a cash buyer</h2> <p>A cash buyer can be a home seller's dream. You don't have to worry about the buyer qualifying for financing, appraisals, and many cash deals close relatively quickly. But if you receive an offer from a cash buyer, don't take their word for it. Ask for proof of funds before accepting the offer, such as a bank statement or other documentation. The last thing you want to do is take your house off the market, and then find out a so-called cash buyer doesn't have enough funds to complete the purchase.</p> <h2>6. Buyer requests too many concessions</h2> <p>Some homebuyers are bold and ask for concession after concession. This is typical if your home has been on the market for a while and buyers smell your desperation. They may submit an offer well below your asking price, ask for seller-paid closing costs, request appliances like the washer and dryer, and some go as far as requesting repairs in their purchase agreement.</p> <p>It's tempting to give in to these requests, but at the same time, don't get in over your head financially. Keep in mind that the buyer will likely also request a home inspection, which could uncover costly hidden problems with the home. If you agree to drop your sale price, pay a buyer's closing costs, and take care of their requested home repairs, this can leave you with little money to address any issues found by a home inspector. If you don't correct issues on the home inspection report, the buyer could pull out of the deal.</p> <p>When reviewing your purchase agreement, be realistic and don't feel you have to submit to a buyer's every wish.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F6-signs-a-seller-should-pass-on-a-home-offer&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Signs%2520a%2520Seller%2520Should%2520Pass%2520on%2520a%2520Home%2520Offer.jpg&amp;description=6%20Signs%20a%20Seller%20Should%20Pass%20on%20a%20Home%20Offer"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/6%20Signs%20a%20Seller%20Should%20Pass%20on%20a%20Home%20Offer.jpg" alt="6 Signs a Seller Should Pass on a Home Offer" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/6-signs-a-seller-should-pass-on-a-home-offer">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-times-buying-a-home-with-cash-is-bad-for-your-budget">5 Times Buying a Home With Cash Is Bad for Your Budget</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-things-sellers-should-watch-out-for-during-escrow">9 Things Sellers Should Watch Out for During Escrow</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-pay-your-mortgage-off-early">Should You Pay Your Mortgage Off Early?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-benefits-of-carrying-a-mortgage-into-retirement">5 Benefits of Carrying a Mortgage Into Retirement</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-ways-to-buy-a-house-without-a-mortgage">4 Ways to Buy a House Without a Mortgage</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing buyers concessions contingencies homeownership mortgages paying cash pre-approvals selling a house Thu, 29 Jun 2017 08:30:15 +0000 Mikey Rox 1969760 at http://www.wisebread.com 5 Times Buying a Home With Cash Is Bad for Your Budget http://www.wisebread.com/5-times-buying-a-home-with-cash-is-bad-for-your-budget <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-times-buying-a-home-with-cash-is-bad-for-your-budget" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/house_building_insurance_housewarming_loan_real_estate_home_concept.jpg" alt="House building, insurance, housewarming, loan, real estate, home concept" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Buying a home with cash is usually considered a smart financial move, if you can swing it. That's because taking out a mortgage loan to finance your home requires you to pay a ton of interest, even in today's low-interest rate environment. With cash, you don't have to worry about interest at all.</p> <p>For example, let's say you take out a 30-year, fixed-rate mortgage of $200,000 at an interest rate of 3.93 percent. You'll pay more than $140,000 in interest if you take the full three decades to pay back your loan. If you pay in cash, that $140,000 stays in your pocket.</p> <p>What could possibly be the downside of paying this way? Here are a few possibilities.</p> <h2>1. When making an all-cash offer will deplete your savings</h2> <p>If you can afford to buy that $300,000 home with cash, that's great. But if that purchase leaves you with little or no money in your savings, it can put you in financial jeopardy.</p> <p>It's important to have cash reserves to handle life's emergencies. What if you lose your job? You might wish you still had some of those savings available.</p> <p>Remember, your investment in your home is largely <em>illiquid</em>. To access it, you'll have to sell your home or take out a home-equity loan or line of credit. Neither option is as appealing as having cash reserves on hand.</p> <p>If you do have plenty of cash &mdash; but not enough to have funds leftover after buying a home &mdash; consider coming up with an extra-large down payment instead. This way, you can reduce your mortgage while keeping some cash on hand.</p> <h2>2. When your cash is earning you money</h2> <p>Are your cash savings earning you plenty of big returns? Then it might not make sense to take a big chunk of this money and invest it in a house. Yes, it's nice not to have to make a mortgage payment each month. But you'll have to determine if the return that your invested dollars are generating outweighs the savings in interest you'd get by avoiding a mortgage.</p> <h2>3. When you'll miss out on a tax break</h2> <p>Homeowners can deduct the amount of interest they pay on their mortgage loans each year. This tax break is more valuable during the earliest years of a mortgage, when homeowners are paying the most interest.</p> <p>You'll have to determine how valuable this tax break is to you. If you do need to reduce your tax bill each year, using some of your cash to come up with a bigger down payment and then taking out a mortgage to finance the rest of your home purchase might make the most sense.</p> <h2>4. When your home's value might fall</h2> <p>There was a time when no one thought homes could lose value over a seven- or 10-year period. Then came 2007 and 2008, when home values suddenly plummeted.</p> <p>There's a lesson here: There is no guarantee that your home will increase in value after you buy it. There's also no guarantee that it won't lose value.</p> <p>The hope is that after buying your home in an all-cash offer, the property will become even more valuable. When it's time to sell, you'll earn a profit. But there is no guarantee that this will happen. And if you do have to sell your home at a loss one day, that money you invested in it will be lost.</p> <h2>5. When you'll miss out on great interest rates</h2> <p>Mortgage interest rates have risen, but they are still at historic lows. The Freddie Mac Primary Mortgage Market Survey says that the average interest rate on a 30-year, fixed-rate mortgage was 3.89 percent as of June 8, 2017. The average rate on a 15-year, fixed-rate mortgage was 3.16 percent. Those are great rates.</p> <p>Instead of investing a big chunk of your cash in a home, it might make more sense to take that same money and make a different investment that will generate bigger returns. You can then apply for a mortgage loan with the shortest possible term and enjoy interest rates that are still at near-historic lows.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-times-buying-a-home-with-cash-is-bad-for-your-budget&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Times%2520Buying%2520a%2520Home%2520With%2520Cash%2520Is%2520Bad%2520for%2520Your%2520Budget.jpg&amp;description=5%20Times%20Buying%20a%20Home%20With%20Cash%20Is%20Bad%20for%20Your%20Budget"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Times%20Buying%20a%20Home%20With%20Cash%20Is%20Bad%20for%20Your%20Budget.jpg" alt="5 Times Buying a Home With Cash Is Bad for Your Budget" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/5-times-buying-a-home-with-cash-is-bad-for-your-budget">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/weak-credit-you-can-still-get-a-mortgage-despite-tough-lending-standards">Weak Credit? You Can Still Get a Mortgage Despite Tough Lending Standards</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-mortgage-details-you-should-know-before-you-sign">5 Mortgage Details You Should Know Before You Sign</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-pay-your-mortgage-off-early">Should You Pay Your Mortgage Off Early?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-moves-that-will-ruin-your-mortgage-application">5 Money Moves That Will Ruin Your Mortgage Application</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/watch-out-for-these-5-last-minute-home-buying-costs">Watch Out for These 5 Last Minute Home Buying Costs</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing down payments downsides home buying homeownership interest rates mortgages new home paying cash tax breaks Thu, 22 Jun 2017 08:30:16 +0000 Dan Rafter 1965874 at http://www.wisebread.com 7 Signs It's Time to Break Up With Your Credit Cards http://www.wisebread.com/7-signs-its-time-to-break-up-with-your-credit-cards <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-signs-its-time-to-break-up-with-your-credit-cards" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/credit_card_dollar_000079523783.jpg" alt="Man learning signs it&#039;s time to break up with his credit cards" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Just as unresolved conflicts can lead to a breakup in a relationship, there are signs of credit card misuse that should signal it's time to break up with your credit cards &mdash; at least for awhile.</p> <p>Here are seven signs to look out for.</p> <h2>1. You Can Only Afford the Minimum Payment</h2> <p>Prioritizing bills isn't easy. After paying the rent, grocery, water and electricity bills, and other basic necessities of life, it can be difficult to pay off a credit card bill, too. If you can only afford the minimum payment on the credit card, then you probably have some spending problems.</p> <p>Making only the minimum payment on a credit card will keep your account up to date and in good standing, and that's a good start. But it will take years to knock down the balance, and even longer if you continue charging purchases on the card.</p> <p>Here's an example: If you owe $5,000 on a credit card at 18% interest, paying the minimum amount due each month (assuming 3% of balance) will take you <strong>over 16 years</strong> to pay it off. Along with paying the $5,000 principal, you'll have paid $4,698.46 in interest. (See also: <a href="http://www.wisebread.com/the-best-low-interest-rate-credit-cards?utm_source=wisebread&amp;utm_medium=seealso&amp;utm_campaign=cc_article">Best Credit Cards with Low Interest Rates</a>)</p> <p>If instead you pay $200 each month, that will cut down the repayment time to under 3 years, at which point you&rsquo;d have paid $1,313.96 in interest.</p> <h2>2. You Play the Transfer Balance Shell Game</h2> <p>One way to get out of paying interest on a credit card balance is to <a href="http://www.wisebread.com/when-to-do-a-balance-transfer-to-pay-off-credit-card-debt?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=cc_article">transfer it to a 0% APR balance transfer card</a>. You can save thousands of dollars in interest, but usually only for one year during the introductory period. After that, you're back to paying interest again.</p> <p>If you're constantly moving credit card balances to <a href="http://www.wisebread.com/the-best-0-balance-transfer-credit-cards?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=cc_article">0% APR cards</a> so you can avoid paying interest, it's a sign your credit card spending is out of control.</p> <p>It's one thing if you're using that year of no interest payments to pay off a credit card. But if you're still running up the balance, you're getting nowhere in paying off the debt. (See also: <a href="http://www.wisebread.com/what-you-must-know-before-transferring-credit-card-balances?utm_source=wisebread&amp;utm_medium=seealso&amp;utm_campaign=cc_article">What You Must Know Before Making a Balance Transfer</a>)</p> <h2>3. You're Maxed Out</h2> <p>Your credit cards have credit limits, and if you're close to those limits it can be difficult to extend more credit when you really need it &mdash; such as in an emergency.</p> <p>Maxing out your credit cards can also hurt your credit score because your <a href="http://www.wisebread.com/this-one-ratio-is-the-key-to-a-good-credit-score?utm_source=wisebread&amp;utm_medium=internal&amp;utm_campaign=cc_article">credit utilization ratio</a> &mdash; the percentage of available credit being used &mdash; should be under 30% for a top credit score.</p> <h2>4. You Make Impulse Buys on Credit</h2> <p>Credit cards are easy to pull out of a wallet or purse to pay for anything, from a candy bar or drink to a down payment on a new car. If you're using credit cards to buy anything you want whenever you see it, such as a sweater you see in a store window or an ice cream cone on a hot day out, then you're more likely to rack up debt faster without realizing it.</p> <p>Paying cash for such purchases can help you control spending. If you don't have the cash on you, then you won't be able to make the impulse buy when it pops up.</p> <h2>5. You Buy Things You Can't Afford</h2> <p>Along with impulse buys, credit card users can get in over their heads in debt by charging every expense &mdash; including ones they can't really afford.</p> <p>If you're using cash to buy groceries, for example, you're less likely to get that extra box of cookies if you don't have enough money with you. But with a credit card, the sky's the limit. (See also: <a href="http://www.wisebread.com/the-best-5-credit-cards-for-groceries?utm_source=wisebread&amp;utm_medium=seealso&amp;utm_campaign=cc_article">Credit Cards That Offer Cash Back for Groceries</a>)</p> <h2>6. You Hide Debt From Your Spouse</h2> <p>If getting the mail makes you anxious because your spouse may see your credit card bill, you have a debt problem and need to tackle it <em>together</em>.</p> <p>Hiding debt from your spouse can also hurt your relationship, so working together on this can solve two problems simultaneously.</p> <h2>7. You Have Credit Cards From Every Store</h2> <p>Store-branded credit cards can be enticing at the checkout counter. They often offer discounts of 20% or more on purchases that day, and approval is almost automatic.</p> <p>But they also have high interest rates of up to 29%, setting you up for more interest payments if you don't pay the balance in full each month. Store credit cards also offer an easy excuse to go shopping. (See also: <a href="http://www.wisebread.com/store-credit-cards-that-dont-suck?utm_source=wisebread&amp;utm_medium=seealso&amp;utm_campaign=cc_article">Store Credit Cards That Don&rsquo;t Suck</a>)</p> <p>And since a store's credit card can only be used at the issuing business &mdash; you can only use a Nordstrom card at Nordstrom stores, for example &mdash; you'll need credit cards from every store you shop at if you want to take advantage of the deals they offer.</p> <h2>What to Do</h2> <p>There are things you can do if you spot any of the above signs in your financial life. To recap, here are a few things to try before using your credit cards again:</p> <ul> <li>Seek credit counseling. The Federal Trade Commission offers advice on how to find a <a href="https://www.consumer.ftc.gov/articles/0153-choosing-credit-counselor">reputable credit counseling agency</a>.<br /> &nbsp;</li> <li>Put your credit cards away and pay with cash only.<br /> &nbsp;</li> <li>Pay more than the minimum on your credit cards and tackle the debt.<br /> &nbsp;</li> <li>Ask your credit card company for a lower rate.<br /> &nbsp;</li> <li>Transfer balances to a 0% APR card and work on paying off the principal within a year.</li> </ul> <p><em>Have you ever broken up with your credit cards? How long was the split?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/aaron-crowe">Aaron Crowe</a> of <a href="http://www.wisebread.com/7-signs-its-time-to-break-up-with-your-credit-cards">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-moves-to-make-before-cutting-up-your-credit-card">6 Moves to Make Before Cutting Up Your Credit Card</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-things-you-might-miss-in-your-credit-cards-fine-print">6 Things You Might Miss in Your Credit Card&#039;s Fine Print</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/i-dont-love-capital-one-how-to-get-a-lower-apr-or-possibly-not">How to Get a Lower APR, or Possibly Not</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-a-credit-card-cash-advance-costs-you-more-than-a-purchase">How a Credit Card Cash Advance Costs You More Than a Purchase</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-questions-to-ask-before-accepting-a-credit-card-offer">10 Questions to Ask Before Accepting a Credit Card Offer</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards APR balance transfers debt high interest rates minimum monthly payments overspending paying cash Fri, 20 May 2016 10:30:08 +0000 Aaron Crowe 1713706 at http://www.wisebread.com 8 Times You Should Demand a Discount http://www.wisebread.com/8-times-you-should-demand-a-discount <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-times-you-should-demand-a-discount" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_eating_salad_000051647464.jpg" alt="Woman learning when to demand a discount" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Growing up, I often remember seeing my parents noticeably upset with the service they received, or the products they had bought. After one particularly poor experience at a restaurant they said, &quot;We just won't eat here again.&quot; But when asked, &quot;How was the meal?&quot; they both smiled and said &quot;Fine, thanks.&quot;</p> <p>Now, maybe this is the classic reserve of the English, or maybe they're too polite for their own good, but that was not the correct way to go about it.</p> <p>When you have a poor experience with anything, you need to speak up, and also ask for compensation of some kind. It's the natural way to keep these places in check, so that bad service or poor quality products are not constantly being presented to the public. Always be polite and treat the people you're dealing with respectfully, but if any of the following eight instances occur... ask for a discount.</p> <h2>1. When You Get Poor Service at a Restaurant</h2> <p>Let's just clarify that the service should be uncharacteristically poor. If you wait a long time to get seated on a Friday evening, or your server is so busy he or she forgets to bring the extra fries you ordered, give the place &mdash; and your server &mdash; a break. This is more about poor service that could easily be avoided.</p> <p>If the food arrives cold, the fish is raw, the meat is very overcooked, or the server is just plain rude, you definitely have a reason to talk to the manager. Explain what has happened, how it impacted your dining experience, and ask for a discount. In most cases, you will get at least a few of the items removed from your bill. In extreme cases, when everything went wrong, you may very well be told not to pay anything. However, if the server was great in spite of all the problems, don't forget to leave him or her a tip.</p> <h2>2. When Your Event Seats Aren't Good</h2> <p>Unless you are warned specifically before you buy them (some will say things like &quot;obscured view&quot; or &quot;partial view of stage&quot; and should already be discounted), there is no reason to pay the same price as other people if your seats are terrible. This happened to me when I went to see Cirque du Soleil. There was no warning that the seats I bought were right behind one of the poles holding up the big top. My wife and I were leaning left and right through the entire performance. After, I spoke to the staff and received a discount, and a free CD of the music from that evening. If you have poor seats, ask to speak to the event manager. Demand a discount, if you can handle the poor seating, or ask to be moved if it is possible.</p> <h2>3. When Anything Is Not Quite as Described</h2> <p>From the food or service, to the product attributes, if you were sold something based on information that was slightly incorrect, you should demand a discount. If the tool set indicates &quot;25 great tools for around the home&quot; and there are actually only 23 inside, that's misleading. This can sometimes happen when manufacturers change the product, but not the packaging. In any case where you have been a little misled, intentionally or not, you are entitled to a discount. You'll get it, too.</p> <h2>4. When the Product Is a Floor Model</h2> <p>Do not let the store clerk fool you with a bunch of tricky talk about this item not being able to be discounted any further. The floor models are used. They may not have been used in someone's home, but they're used nonetheless. In some cases, for much longer than if it was in a home; especially those TVs and computers that are on the shop floor day in, day out.</p> <p>So, find a manager and ask for the price to be reduced beyond what is shown on the sticker. They want to get rid of these items. They'd obviously prefer to sell it to someone who will pay sticker, but they will go lower. And as the item is used, and most likely blemished, you should demand a discount. I do this every time, and it has worked every time.</p> <h2>5. When You Pay Cash</h2> <p>Cash is king. That's as true today as it was fifty years ago, and if you are lucky enough to have the money on hand to pay in cash, be it something small or a new home, you should definitely take advantage of it. &quot;How much of a reduction can I get if I pay cash for this house, right now?&quot; This is something buyers are not expecting, and it is incredibly tempting. Cash is a sure thing. Financing can fall through, interest rates fluctuate, but cash is cash. In stores, merchants pay fees for <a href="http://www.wisebread.com/6-times-to-use-credit-cards-instead-of-cash">credit card transactions</a>, so you could easily get a cash discount.</p> <p>However, don't expect this discount when buying a car. Dealerships get big incentives for financing offers, and you take that away from them if you offer to pay cash. In fact, you may pay more if you pay cash, so don't do that. You can always pay off the loan a week or two later.</p> <h2>6. When the Item is Broken, Scratched, or Dented</h2> <p>Why would you pay for a broken item at all? Well, it all depends what you want to use it for. If it's a superficial break, say on the case of the product, but the product itself works just fine, ask for a discount. The store is more than happy to oblige. If you notice a huge dent on the fridge that was just delivered, but the dent won't be seen or you just don't care, ask for a discount. If the item is scratched or damaged but it doesn't impair the function, and you are okay with it, ask for your discount. And if the item is completely broken, but you want to repair it yourself, or need it for parts, ask for a big discount.</p> <p>In all cases, you are doing the store a favor, and they will be happy to negotiate a deal. This even goes for sellers on Craigslist or eBay. If the item is not as pristine as described, but you're happy to take it, ask for the discount.</p> <h2>7. When the Seller Is in a Hurry</h2> <p>If you ever encounter a &quot;motivated seller&quot; you know you're about to get a discount. Motivated sellers are those who need to sell, and sell fast, usually because they're about to leave the state. Sometimes, they need money quickly, for reasons you probably don't want to ask about. Whatever the reason, you should take advantage of this. Flea market sellers will offer discounts as they are packing up for the day, and so will people operating garage sales. Smile, ask for a discount, and you'll usually get it.</p> <h2>8. When the Store Is Closing or Going Out of Business</h2> <p>Blockbuster. Circuit City. Sharper Image. They all bit the dust and they all had &quot;closing down&quot; sales. When this happens, start haggling. A store that is going out of business presents problems for buyers, especially when it comes to buying things that may have warranty issues. For this reason, you should demand a discount. When one store is closing, perhaps because a particular location is not performing as well as it should, you don't have as much leverage. But you can still ask for a discount, because they are &quot;motivated&quot; to sell, and that, as just discussed, gives you bargaining power.</p> <p><em>When have you asked for a discount?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/8-times-you-should-demand-a-discount">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/40-restaurants-that-offer-senior-discounts">40 Restaurants That Offer Senior Discounts</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-times-coupons-trick-you-into-spending-more-money">5 Times Coupons Trick You Into Spending More Money</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/lower-your-credit-card-interest-rate-and-reduce-your-phone-bill-immediately-and-easily">Lower Your Credit Card Interest Rate and Reduce Your Phone Bill, Immediately and Easily</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/never-order-fish-on-mondays-and-7-other-bad-days-to-buy-stuff">Never Order Fish on Mondays and 7 Other Bad Days to Buy Stuff</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-pay-more-guide-to-price-matching-and-cheat-sheet">Don&#039;t Pay More! Guide to Price Matching and Cheat Sheet</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Consumer Affairs Shopping discounts faulty paying cash poor service restaurants scratch and dent Wed, 02 Sep 2015 11:00:22 +0000 Paul Michael 1540895 at http://www.wisebread.com The Process for Purchasing a House With Cash http://www.wisebread.com/the-process-for-purchasing-a-house-with-cash <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-process-for-purchasing-a-house-with-cash" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/front_porch.jpg" alt="Woman and kids on front porch" title="Woman and kids on front porch" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>Several years ago I wrote an article about <a href="http://www.wisebread.com/the-pros-and-cons-of-paying-cash-for-a-house">the pros and cons of paying cash for a house.</a> Some readers asked me how this can be done and what the procedures are. Last year my husband and I actually did purchase a property with cash, and here is our experience. (See also: <a href="http://www.wisebread.com/going-green-how-to-live-a-nearly-cash-only-life">How to Live a (Nearly) Cash-Only Life</a>)</p> <p>The property we bought was listed on the public multiple listing service. It was bank owned, so I called the listing agent and asked for an appointment. The listing agent immediately told us that the bank could only accept cash offers at this point because the property already has another cash offer on it. After seeing it and finding that it was in great condition, I made a pretty fair offer that was about 95% of the listing price. I also had to submit evidence of my funds along with my offer. The bank gladly accepted, and I sent in an earnest deposit check for $5,000. This check was then put into escrow towards the purchase of the house.</p> <p>Next, we hired an inspector to look at the property to see if there are any defects. Unfortunately, the air conditioning system was broken, but the bank refused to pay for it, and we agreed to fix it out of pocket. The bank did agree to pay for title insurance, half of the escrow fee, and clear all liens from the property. So I made sure that all the unpaid bills and taxes on the property were paid before closing.</p> <p>Meanwhile, I was gathering my funds all into one account so that I could send it into escrow before closing. We were able to choose our closing date to be the end of June, since we didn't have to deal with a loan. This was advantageous to us, since the bank had to pay all the property taxes for the first half year. I asked for the HUD closing statement about three days before closing and made sure that everything looked correct.</p> <p>On the day before closing, I made sure all the funds were in my account and then sent the money to escrow. Everything went fairly smoothly, and the whole process took about three weeks from looking at the property to getting the keys. The closing costs were less than 1% of the price of the property because we didn't have to deal with a loan.</p> <p>We were able to fix the air conditioner for a very fair price, and we rented the property out after several weeks of open houses. Now that we've owned the property for more than six months, we are actually eligible to take money out via a cash out refinance, but we don't need the money right now. The point is that if we didn't make a cash offer, then we would not have been able to procure this property at all. Basically, the process to buying a house with a cash on the open market is pretty much the same as <a href="http://www.wisebread.com/buying-first-home/home-loans">buying a house with a loan</a>, but you have more flexibility on the closing date, and that is a competitive advantage over offers with a loan contingency. You don't have to sign as many papers, but you still have to do your due diligence and make sure that you have a bit of cash buffer left over after the purchase for possible repairs and improvements. &nbsp;</p> <p><em>What do you think? Are you thinking of buying a house with cash?</em></p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fthe-process-for-purchasing-a-house-with-cash&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FThe%2520Process%2520for%2520Purchasing%2520a%2520House%2520With%2520Cash.jpg&amp;description=The%20Process%20for%20Purchasing%20a%20House%20With%20Cash"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/The%20Process%20for%20Purchasing%20a%20House%20With%20Cash.jpg" alt="The Process for Purchasing a House With Cash" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/xin-lu">Xin Lu</a> of <a href="http://www.wisebread.com/the-process-for-purchasing-a-house-with-cash">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-8"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-happens-at-a-foreclosure-auction">What Happens at a Foreclosure Auction?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/thinking-of-skipping-the-home-inspection-heres-what-it-will-cost-you">Thinking of Skipping the Home Inspection? Here&#039;s What It Will Cost You</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-housing-market-is-finally-rebounding">The Housing Market Is Finally Rebounding</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/youre-ready-to-make-an-offer-on-a-house-now-what">You&#039;re Ready to Make an Offer on a House: Now What?</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/will-house-prices-keep-dropping">Will house prices keep dropping?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing becoming a homeowner buying a house paying cash Mon, 30 Jan 2012 10:48:22 +0000 Xin Lu 879768 at http://www.wisebread.com