10 States With the Highest Sales Taxes

Before you embark on a shopping spree in any of the 10 worst states for sales taxes featured here, you’ll want to make extra room in your budget. Our biggest offender clocks in at 9.55% once both state and local sales taxes are factored in (continue reading our round-up to find out which state is the priciest culprit).

However, retirees and other relocators shouldn’t judge a state by its sales tax alone. While this expense may be costlier in some areas, residents in states with a high sales tax may be able to reap the benefits of other tax-related perks, such as not having to pay state income tax.

Got your attention? Take a look at our list to find out which states will nickel-and-dime you the most on everyday purchases.

Sales tax values are for 2020 and were compiled by the Tax Foundation. Income tax brackets are for the 2020 tax year. Property tax values are for 2019.

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10. New York

The state of New York.The state of New York.

Overall Rating for Middle-Class Families: Least tax-friendly

State Sales Tax: 4% state levy. Localities can add as much as 4.875%, and the average combined rate is 8.52%, according to the Tax Foundation. In the New York City metro area, there is an additional 0.375% sales tax to support transit. Clothing and footwear that cost less than $110 (per item or pair) are exempt from sales tax. Groceries and prescription drugs are exempt, too. Motor vehicle sales are taxable, though.

Income Tax Range: Low: 4% (on up to $8,500 of taxable income for single filers and up to $17,150 for married couples filing jointly); High: 8.82% (on taxable income over $1,070,550 for single filers and over $2,155,350 for married couples filing jointly).

Starting in 2021, the top rate is 10.9% on taxable income over $25 million (regardless of filing status).

New York City and Yonkers imposed their own income tax. A commuter tax is also imposed on residents of New York City, as well as on residents of Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester Counties.

Property Taxes: In the Empire State, the median property tax rate is $1,692 per $100,000 of assessed home value. 

For details on other state taxes, see the New York State Tax Guide for Middle-Class Families.

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9. California

The state of California.The state of California.

Overall Rating for Middle-Class Families: Most tax-friendly

State Sales Tax: 7.25% state levy. Localities can add as much as 2.5%, and the average combined rate is 8.68%, according to the Tax Foundation. Groceries and prescription drugs are exempt from these taxes, but clothing and motor vehicles are taxed. 

Income Tax Range: Low: 1% (on up to $17,864 of taxable income for married joint filers and up to $8,932 for those filing individually); High: 13.3% (on more than $1,198,024 for married joint filers and $1 million for those filing individually).

Property Taxes: If you’re planning to buy a home in the Golden State, the median property tax rate is $729 per $100,000 of assessed home value. 

For details on other state taxes, see the California State Tax Guide for Middle-Class Families.

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8. Kansas

The state of Kansas.The state of Kansas.

Overall Rating for Middle-Class Families: Least tax-friendly

State Sales Tax: 6.5% state levy. Localities can add as much as 4%, and the average combined rate is 8.69%, according to the Tax Foundation. These rates also apply to groceries, motor vehicles, clothing and prescription drugs. 

Income Tax Range: Low: 3.1% (on $2,501 to $15,000 of taxable income for single filers and $5,001 to $30,000 for joint filers); High: 5.7% (on more than $30,000 of taxable income for single filers and more than $60,000 for joint filers).

Property Taxes: Kansans who own their homes pay a median property tax rate of $1,369 per $100,000 of assessed home value. 

For details on other state taxes, see the Kansas State Tax Guide for Middle-Class Families.

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7. Illinois

The state of Illinois.The state of Illinois.

Overall Rating for Middle-Class Families: Least tax-friendly

State Sales Tax: 6.25% state levy. Localities can add as much as 4.75%, and the average combined rate is 8.82%, according to the Tax Foundation. Food and prescription drugs are taxed at only 1% by the state. Clothing and motor vehicles are fully taxed.

Income Tax Range: There is a flat rate of 4.95% of federal adjusted gross income after modifications.

Property Taxes: For homeowners in Illinois, the median property tax rate is $2,165 per $100,000 of assessed home value — the second highest in our round-up.

For details on other state taxes, see the Illinois State Tax Guide for Middle-Class Families.

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6. Oklahoma

The state of Oklahoma.The state of Oklahoma.

Overall Rating for Middle-Class Families: Not tax-friendly

State Sales Tax: 4.5% state levy. Localities can add as much as 7%, and the average combined rate is 8.95%, according to the Tax Foundation. Prescription drugs are exempt and motor vehicles are taxed at a rate of 1.25% (a 3.25% excise tax also applies). Grocery items and clothing are taxable at 4.5%, plus local taxes. 

Income Tax Range: Low: 0.5% (on up to $1,000 of taxable income for single filers and up to $2,000 for married joint filers); High: 5% (on taxable income over $7,200 for single filers and over $12,200 for married joint filers).

Property Taxes: For Oklahomans who own a home, the median property tax rate is $869 per $100,000 of assessed home value. 

For details on other state taxes, see the Oklahoma State Tax Guide for Middle-Class Families.

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5. Alabama

Photo of AlabamaPhoto of Alabama

Overall Rating for Middle-Class Families: Tax-friendly

State Sales Tax: 4% state levy. Localities can add as much as 7.5% to that, and the average combined rate is 9.22%, according to the Tax Foundation. Prescription drugs are exempt. Groceries and clothing are fully taxable, while motor vehicles are taxed at a reduced rate of 2% (additional local taxes may apply).

Income Tax Range: Low: 2% (on up to $1,000 of taxable income for married joint filers and up to $500 for all others); High: 5% (on more than $6,000 of taxable income for married joint filers and more than $3,000 for all others). 

Some Alabama municipalities also impose occupational taxes on salaries and wages.

Property Taxes: In Alabama, the median property tax rate is $395 per $100,000 of assessed home value — the lowest on our list.

For details on other state taxes, see the Alabama State Tax Guide for Middle-Class Families.

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4. Washington

The state of Washington.The state of Washington.

Overall Rating for Middle-Class Families: Most tax-friendly

State Sales Tax: 6.5% state levy. Municipalities can add up to 4% to that, with the average combined rate at 9.23%, according to the Tax Foundation. Grocery items and prescription drugs are exempt. Clothing is taxable, as are motor vehicles. However, there’s an additional 0.3% tax on sales of motor vehicles.

Income Tax Range: Washington has no state income tax.

Property Taxes: Home buyers in the Evergreen State can expect to pay a median property tax rate of $929 per $100,000 of assessed home value. 

For details on other state taxes, see the Washington State Tax Guide for Middle-Class Families.

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3. Arkansas

The state of Arkansas.The state of Arkansas.

Overall Rating for Middle-Class Families: Mixed tax picture

State Sales Tax: 6.5% state levy. Localities can add as much as 5.125%, and the average combined rate is 9.51%, according to the Tax Foundation. Prescription drugs are exempt. Grocery items are taxed at 0.125% (additional local taxes may apply). Motor vehicles are taxed if the purchase price is $4,000 or more (7% tax rate in Texarkana). However, starting in 2022, the rate on sales of used motor vehicles priced between $4,000 and $10,000 will only be 3.5%. Clothing is taxed at the standard rate.

Income Tax Range: Low: 2% (on taxable income from $4,500 to $8,899 for taxpayers with net income less than $22,200), 0.75% (on first $4,499 of taxable income for taxpayers with net income from $22,200 to $79,300), or 2% (on on first $4,000 of taxable income for taxpayers with net income over $79,300); High: 3.4% (on taxable income from $13,400 to $22,199 for taxpayers with net income less than $22,200), 5.9% (on taxable income from $37,200 to $79,300 for taxpayers with net income from $22,200 to $79,300), or 6.6% (on taxable income over $79,300 for taxpayers with net income over $79,300). Beginning in 2021, the top rate for taxpayers with net income over $79,300 will be 5.9% (on taxable income over $8,000).

A “bracket adjustment” of between $40 and $440 is subtracted from the amount of tax due for taxpayers with net income from $79,301 to $84,600.

Property Taxes: For homeowners in the Natural State, the median property tax rate is $612 per $100,000 of assessed home value. 

For details on other state taxes, see the Arkansas State Tax Guide for Middle-Class Families.

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2. Louisiana

The state of Louisiana.The state of Louisiana.

Overall Rating for Middle-Class Families: Tax-friendly

State Sales Tax: 4.45% state levy. Localities can add as much as 7%, and the average combined rate is 9.52%, according to the Tax Foundation. Groceries and prescription drugs are exempt from the state’s sales tax, but localities may tax these. Clothing and motor vehicles are taxable.

Income Tax Range: Low: 2% (on $12,500 or less of taxable income for individuals, $25,000 for joint filers); High: 6% (on more than $50,000 of taxable income, $100,000 for joint filers). 

Property Taxes: The median property tax rate in Louisiana is $534 per $100,000 of assessed home value. 

For details on other state taxes, see the Louisiana State Tax Guide for Middle-Class Families.

 

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1. Tennessee

The states of TennesseeThe states of Tennessee

Overall Rating for Middle-Class Families: Most tax-friendly

State Sales Tax: 7% state levy. There’s also an additional state tax of 2.75% on sales of single items that applies to the portion of the sales price from $1,600 to $3,200. Localities can add up to 2.75%, with an average combined rate of 9.55%, according to the Tax Foundation. Groceries are taxed at 4% by the state, in addition to any additional local taxes. Clothing is taxed at the standard rate. Motor vehicles are taxed at the basic 7% rate, plus the additional 2.75% on purchases between $1,600 and $3,200. There’s no tax on prescription drugs. 

Income Tax Range: There’s no state income tax in Tennessee. However, dividends and some interest are subject to the Hall Tax at a 1% rate in 2020. The first $1,250 in taxable income for individuals ($2,500 for joint filers) is exempt. 2020 is the last year for this tax, which is being phased out. Also, the tax is waived if you’re over the age of 100.

Property Taxes: In Tennessee, the median property tax rate is $636 per $100,000 of assessed home value. 

For details on other state taxes, see the Tennessee State Tax Guide for Middle-Class Families.

Source: kiplinger.com

The Art of Mortgage Pre-Approval

Buying a home can feel like a cut-throat process. You may find the craftsman style house of your dreams only to be bumped out of the running by a buyer paying in all cash, or moving super swiftly. But fear not, understanding the home buying process and getting a mortgage pre-approval can put you back in the race and help you secure the house you want.

What is Mortgage Pre-approval?

Mortgage pre-approval is essentially a letter from a lender that states that you qualify for a loan of a certain amount and at a certain interest rate based on an evaluation of your credit and financial history. You’ll need to shop for homes within the price range guaranteed by your pre-approved mortgage. You can find out how much house you can afford with our home affordability calculator.

Armed with a letter of pre-approval you can show sellers that you are a serious homebuyer with the means to purchase a home. In many ways it’s competitive to buying a home in cash. In the eyes of the seller, pre-approval can often push you ahead of other potential buyers who have not yet been approved for a mortgage.

Getting pre-qualified for a mortgage is not the same as pre-approval. It’s actually a relatively simple process in which a lender looks at a few financial details, such as income, assets, and debt, and gives you an estimate of how much of a mortgage they think you can afford.

Taking out a mortgage is a huge step and pre-qualification can help you hunt down reputable lenders and find a loan that potentially works for you. Going through this process can be useful, because it gives you an idea of your buying power, or how much house you can afford.

Check out local real estate
market trends to help with
your home-buying journey.

It also gives you an idea of what your monthly payment might be and is a chance to shop around to various lenders to see what types of terms and interest rates they offer. Pre-qualification is not a guarantee that you will actually qualify for a mortgage.

Getting pre-approval is a more complicated process. You’ll have to fill out an application with your lender and agree to a credit check in addition to providing information about your income and assets. There are a number of steps you can take to increase your chances of pre-approval or to increase the amount your lender will approve. Consider the following:

Building Your Credit

Think of this as step zero when you apply for any type of loan. Lenders want to see that you have a history of properly managing your debt before offering you credit themselves. You can build credit history by opening and using a credit card and paying your bills on time. Or consider having regular payments , such as your rent, tracked and added to your credit score.

Checking Your Credit

If you’ve already established a credit history, the first thing you’ll want to do before applying for a mortgage is check your credit report and your FICO score. Your credit report is a history of your credit compiled from sources such as banks, credit card companies, collection agencies, and the government.

This information is collected by the three main credit reporting bureaus, Transunion, Equifax and Experian. Your FICO score is one number that represents your credit risk should a lender offer you a loan.
You’ll want to make sure that the information on your credit report is correct.

If you find any mistakes, contact the credit reporting agencies immediately to let them know. You don’t want any incorrect information weighing down your credit score, putting your chances for pre-approval at risk.

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Stay on Top of Your Debt

Your ability to pay your bills on time has a big impact on your credit score. If you can, make sure you make regular payments. And if your budget allows, you can make payments in full. If you have any debts that are dragging on your credit score—for example, debts that are in collection—work on paying them off first, as this can give your score a more immediate boost.

Watch Your Debt-to-income Ratio

Your debt-to-income ratio is your monthly debts divided by your monthly income. If you have $1,000 a month in debt payments and make $5,000 a month, your debt-income ratio is $1,000 divided by $5,000, or 20%.

Lenders may assume that borrowers with a high debt-to-income ratio will have a harder time making their mortgage payments. Keep your debt-to-income ratio in check by avoiding making large purchases before seeking pre-approval for a mortgage. For example, you may want to hold off on buying a new car until you’ve been pre-approved.

Prove Consistent Income

Your lender will want to know that you’ve got enough money coming in each month to cover a potential mortgage payment. So, they’ll likely ask you to prove that you have consistent income for at least two years by taking a look at your income documents (W-2, 1099 etc.).

For some potential borrowers, such as freelancers, this may be a tricky process since you may have income from various sources. Keep all pay stubs, tax returns, and other proof of income and be prepared to show them to your lender.

What Happens if You’re Rejected?

Rejection hurts. But if you aren’t pre-approved, or you aren’t approved for a large enough mortgage to buy the house you want, you also aren’t powerless. First, ask the bank why they made the decision they did. This will give you an idea about what you might need to work on in order to secure the mortgage you want.

SoFi Mortgage.


The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
SoFi Mortgages are not available in all states. Products and terms may vary from those advertised on this site. See SoFi.com/eligibility-criteria#eligibility-mortgage for details.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOMG18100

Source: sofi.com

Investing during a recession – Lexington Law

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

When things get lean, it’s natural to want to tighten your belt and save money wherever possible. But should you stop investing completely? It’s an entirely personal decision. Get some facts and insights about investing during a recession below to help you determine what will work for you.

Is It a Good Idea to Invest During a Recession?

It depends on a few factors, including what you’re referring to when you say “investing.” If you’re talking about funding a 401(k), you probably want to continue doing so unless you would be unable to pay your necessary bills and living expenses.

But if investing means the stock market or other similar options, you should seriously consider your financial situation. If you already have emergency savings and have disposable income to risk, investing can be an option. This is especially true if you won’t be touching your portfolio for a while, so you have time to weather the ups and downs associated with a recession economy.

But you do want to be aware of the bear market trap so you don’t fall into it. Bear traps occur when a lot of investors have bought into certain stock. This increases the selling pressure, which just means that there are buyers for the stock but not a lot of stock to be had.

Institutions that want the stock to move higher may push prices lower via short sales or other strategies, making it appear as if the prices are falling. That can scare people into selling the stock. In the long run, however, the stock maintains its price or increases in value, so selling early can mean losing out on future gains. This is just one reason you might want to work with a professional advisor when investing.

7 Tips for Investing During a Recession

1. Be Patient and Think Long-Term

Buying and selling stocks rapidly to turn huge profits is mostly an event seen in movies and television. And while it’s not impossible for pros to luck into a big win, this is not typically how individuals should look at investing. It may take time for your investments to pay off, especially if the economy as a whole is struggling, so it’s important to avoid being guided by emotions and rely on logic and sound financial advice.

2. Commit to a Personal Investment Plan

A personal investment plan is a written document that includes your financial goals and what types of limitations you might have, such as what you can afford to spend on investing. Creating such a document ensures you have a logical, well-thought-out guide to turn to when things do get tricky. If you feel tempted by a seemingly perfect investment, for example, your plan can remind you what you can realistically put into this new investment.

3. Use the Dollar-Cost Averaging Strategy

Dollar-cost averaging is a strategy used by many investors, including some professionals. Its goal is to potentially reduce the volatile nature of a single purchase. The DCA strategy works like this:

  • You decide how much you’re going to invest in certain assets within a set period
  • You divide that budget over that time and make periodic purchases of the asset
  • You do this despite the price of the asset at any given time

The goal is to build up the investment for a long-term gain strategy. This is actually how most 401(k) investments are managed.

4. Focus on Quality Over Quantity

But don’t think that you have to buy tons of assets to be investing for the future. If you have limited funds to invest with, it can be tempting to buy up stock that is cheap just to get some quantity. But cheap stock isn’t always a great investment, and it might be better to buy a smaller number of shares in a well-trusted company with a history of strong stock performance.

5. Consider Funds Instead of Individual Stocks

Another option is to consider funds, which spread your investment over numerous stocks. You’ve probably heard that you have to diversify your portfolio. That just means investing in numerous types of assets so that if one doesn’t perform well, you have other gains to make up for the loss.

A mutual fund is an investment option that’s already diversified, for example. Plus, it’s a convenient way to add numerous assets to your equity portfolio without buying and managing numerous stocks yourself.

6. Rebalance When Necessary

While investing is a long-term strategy, active investing can’t be a set-and-forget strategy. You have to make efforts to rebalance your portfolio—or ensure someone is doing that for you—from time to time.

Rebalancing just means aligning your assets with your target goals. For example, you might have a goal of 60% in stocks and 40% in other assets. But if your stocks gain rapidly during a few years, outpacing the gains of your other assets, you could have a 70/30 split. If your goal is still 60/40, you would rebalance by selling stock, purchasing other assets or both.

7. Invest in Recession-Resistant Industries

Recession-resistant industries are those that don’t tend to succumb to downturns in the economy, often because they’re necessary. Examples of industries that have historically weathered recessions well include healthcare, technology, beauty, retail, construction and pet products.

Note that because a company is in a recession-resistant industry doesn’t mean that company itself is necessarily resistant. It’s always important to be discerning about which stocks you invest in. For example, if the company doesn’t have strong financial leadership or has known money problems, it may not matter what industry it’s in.

Review Your Finances and Decide What’s Best for You

Ultimately, only you can decide whether investing during a recession is right for you. Start by reviewing your own finances. Some things you might want to look at include:

  • What kind of savings you have. Having emergency savings is important, especially in a recession. Before you start investing, you may want to build yours.
  • Your income and expenses. You need disposable income before you can invest. That means that your income should be more than your expenses.
  • Your credit history. Buying stocks and investing typically doesn’t rely on you having good credit. But before you start building wealth, get a good look at your credit reports to ensure there’s nothing lurking that you might need to attend to. If you find any surprises, consider reaching out to Lexington Law for help disputing inaccurate items and working to make a positive impact on your credit.

And if you do decide to invest—during a recession or otherwise—consider working with a financial advisor to help you navigate the complexities of managing your portfolio.


Reviewed by John Heath, Directing Attorney of Lexington Law Firm. Written by Lexington Law.

Born and raised in Salt Lake City, John Heath earned his BA from the University of Utah and his Juris Doctor from Ohio Northern University. John has been the Directing Attorney of Lexington Law Firm since 2004. The firm focuses primarily on consumer credit report repair, but also practices family law, criminal law, general consumer litigation and collection defense on behalf of consumer debtors. John is admitted to practice law in Utah, Colorado, Washington D. C., Georgia, Texas and New York.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

What Is Real Estate Due Diligence?

There isn’t an Easy Button for doing your due diligence. It’s really a time-consuming process, and few people have any idea what to do.

Purchasing and owning real estate is always high risk — whether it’s a single family home that you’ll occupy or a 50-unit apartment building for income. You’ll hear experts say to make sure to “do your due diligence” when buying property, but what does that actually mean? What is due diligence?

The truth is, there isn’t an “easy button” for doing your due diligence. It’s really a time-consuming process, and few people have any idea what to do. So here is what it means and some of the steps you should consider and perform.

Do your homework

Due diligence means taking caution, performing calculations, reviewing documents, procuring insurance, walking the property, etc. — essentially doing your homework for the property BEFORE you actually make the purchase. If there are too many issues with the property — and that means too much potential risk and cost — then you can cancel your purchase agreement and look for a better property.

Here are just a few of the steps that apply to both personal residences and investment properties, although some may only apply to one.

Shop the marketplace

Make sure you know what the market has to offer. Too many people look at just a few properties, put in an offer and purchase. You should spend several months looking at properties before you buy.

Mortgage financing

Make sure the mortgage deal you get is fair and in line with competitors. Probably less than 20 percent of people get two bids for their financing, so they don’t know whether they’ve received a fair deal.

Pencil out your investment

If you’re buying an investment property, it’s vital to pencil out your deal. How do you know whether it’s a good deal if you haven’t done the math and compared it to other opportunities?

Property inspection

You probably had an inspection, but did you go to it? Did you review the inspector’s remarks on all the work that needs to be done? Then did you call a contractor or go to a home repair store to see how much it will cost to put the property in the shape you desire? Renovating properties is hugely expensive and high risk, so make sure you get estimates for the work before you decide to move forward with a purchase.

Insurance

Did you check to see whether an insurance policy can be written for the property? How much will it cost? Some areas, such as fire-prone or hurricane-prone areas, might not even be able to get a policy. And even if they do, it might be prohibitively expensive. Get some bids before you’re too far along in your purchasing process.

Homeowners association

Do you know how to review the HOA documents to avoid communities that are in disastrous shape, out of money or have significant construction issues? This is actually a pretty complicated task, but you don’t want to buy into a total mess of an HOA. If you do, you will feel some discomfort as the years go by and you have to deal with the issues and special assessments that you will be required to pay.

Title insurance & plat

Did you look at the title abstract and insurance policy? This will help you see if there are some issues that should concern you. Talk to the title insurance company agent and lawyer to help you review the documents. Also look at the plat of the property, have the easements plotted by title and walk the property for encumbrances.

Those are just a few of the many items that make up due diligence when buying real estate. Remember, you have to do these before you close escrow on the property. If you fail to do the proper tasks, problems might arise that were preventable, and might make your real estate experience less than palatable, or downright life changing! Or they might cause you to lose all the money you’ve put into the property.

Leonard Baron is America’s Real Estate Professor®. His unbiased, neutral and inexpensive “Real Estate Ownership, Investment and Due Diligence 101” textbook teaches potential real estate buyers how to make smart and safe purchase decisions. He is a San Diego State University Lecturer, blogs at Zillow.com, and loves kicking the tires of a good piece of dirt! More at ProfessorBaron.com.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

Source: zillow.com

6 Garage Sale Setup Tips to Best Display Your Items & Make More Money

Picture this: You’re cruising down the street one day, and you spot two garage sales on the same block. The first has racks of clothes, bins of books and records, and a few high-value items prominently displayed near the curb. The second features jumbled, messy piles and boxes scattered across the yard.

Which one would you stop at?

Presentation is crucial to a successful yard sale. You can and should advertise your sale, but you also want to encourage passers-by to stop and look at your wares. If your sale doesn’t make a good first impression, most will just keep going.

No matter how much good stuff your sale has, it won’t bring in shoppers who can’t see it easily. People passing on foot only have your sale in their sights for a couple of minutes at most, and drivers on the street see it for as little as a couple of seconds.

To draw them in, you must show off your sale items so effectively their first glimpse convinces them to take a closer look.

Garage Sale Tips for Presentation

A garage sale has two purposes. It’s a way to declutter your home and bring in some extra cash. And the best way to achieve both goals is to attract as many customers as possible.

When you’re trying to draw in shoppers, pricing isn’t the most crucial factor. Yes, yard sale shoppers love bargains, but if your garage sale items don’t look appealing, no one will even stop to look at the price tags.

So before you even get out the price stickers, you need to spend some time thinking about how to set up your yard sale display to catch the eye.

1. Clean Your Items

Suppose you’re shopping yard sales looking for outdoor furniture. You come across a set that looks sturdy, but the chair arms and backs are coated in grime and their cushions are mildewy. Would you buy them or keep looking for a set in better condition?

That illustrates how important cleaning is. Something that’s otherwise in perfectly good shape becomes a complete turn-off for buyers if it’s covered in dirt. Even if you haven’t used something in years, it can come out of storage sporting a thick coat of dust that makes buyers pass it over.

So before you even think about how to display pieces, give each of them a quick touch-up with a dusting cloth. If anything is especially dirty, take the time to scrub it down with soap and water.

Some garage sale items need more specific cleaning treatment. Run clothes through the washer and dryer to remove dirt and odors, and give shoes a quick polish to remove scuff marks. If you have purses or other bags to sell, clean out dirt and debris from their interiors (and while you’re at it, make sure there’s nothing of value left inside).

2. Show Off the Good Stuff

Shoppers get their first glimpse of your garage sale from either the street or the sidewalk. If all they can see in that first look is a bunch of cheap junk, many will keep moving instead of stopping to browse.

There may be some real gems hidden toward the back of your yard or garage, but many prospective buyers will never see them.

If you want to hold a successful garage sale that attracts as many buyers as possible, put your most appealing merchandise front and center. In my experience, the best yard sale items for attracting buyers include:

  • Antiques of any kind — furniture, houseware, jewelry
  • Appliances
  • Board games
  • Clothing and accessories in good condition, such as shoes and purses
  • Electronics like TVs and stereos
  • Furniture
  • Musical instruments
  • Sporting equipment, including bicycles and camping gear
  • Tools, including garden tools like lawn mowers

In general, large items have more curb appeal than small ones. For one thing, they’re easier to see from the street. Also, little things like cheap toys and kitchen utensils aren’t that expensive to buy new, so they don’t offer the potential for a major bargain.

Another helpful strategy is to display merchandise likely to appeal to men, such as golf clubs or power tools, as close to the road as possible. In my experience, women are more likely to stop at a garage sale than men, so you don’t need to go to as much effort to reel them in.

By displaying things that typically appeal to them most prominently, you’ll attract men as well as women to your sale.

3. Group Like Items Together

Once you’ve drawn customers to your sale, you want to keep them there as long as possible. It might seem like the way to do that is to place everything randomly so shoppers looking for specific finds have to hunt through every table at the sale to discover them. But that strategy is likely to backfire.

As a shopper, I always find it frustrating when a yard sale has no clear layout. If I’m looking for something in particular, such as clothing or books, I want to see all the clothing or books available in one place. If they’re scattered across all the tables at the sale, I’m likely to get frustrated and walk away.

To make shopping easy for your buyers, group similar items together. Make one table for clothing, one for books, one for housewares, and one for toys, for example. That way, people can go directly to the table that interests them and start browsing.

If you have a lot of one type of product, sort it into narrower categories, such as children’s books and adult books.

To make it easier for yourself, sort your merchandise into boxes by category before your sale. On the day of the sale, you can simply bring each box to its own table and start laying everything out.

4. Keep Everything Visible

The easiest way for you to sort goods into categories is to leave them in their boxes. But that isn’t easy for your buyers. No one wants to bend over a box pulling out one baby onesie after another until they find the size and color they’re after.

Haphazard piles of stuff aren’t appealing either. I’ve walked away from more than one rummage sale because all the clothes were in massive, unsorted piles on the tables. Digging through them all to find the few outfits in my size would have taken hours with no guarantee I’d find anything I liked.

To make your sale appealing, lay your wares out in ways that make them easy to see at a glance. There are multiple ways to display different types of merchandise, depending on how much of it you have and what condition it’s in.

Clothing

The best way to display clothing is on hangers on a portable clothes rack. That keeps garments off the ground and makes them easy to sort through. If you don’t have a clothing rack, look for a makeshift alternative, such as an old ladder or a sturdy clothesline strung between two trees.

If there’s no way to hang clothes, the next best option is to arrange them in neatly folded piles on a table. That’s also a suitable way to display clothes for babies and small children.

But note your neatly folded and stacked garments will invariably get unfolded and strewn about as the day goes on, so you have to tidy up your piles from time to time.

Whichever method you choose, try sorting clothes by size, type, and gender. That makes it still easier for buyers to find what they want. A nice added perk is to display garments like coats with their extra buttons if you still have them.

Accessories

There’s nothing more frustrating than finding one shoe in your size and then having to hunt around for the other before you can try them on. You can significantly increase your shoe sales by taking the time to line pairs up together, either on a table or on a sheet or blanket on the ground.

You can display purses and bags on tables, on the ground, or neatly lined up in boxes. Or if you have a large tree handy, you can make an eye-catching display by hanging handbags from its limbs.

Jewelry is a high-value commodity, so it’s worth making an extra effort to display it well.

Wrap a piece of cardboard in fabric, then stick in pins or small nails to hang necklaces, earrings, and bracelets. You can pin brooches directly to the fabric. If you have coordinating pieces, such as necklace-and-earring sets, display them together.

Books & Recordings

Books are easiest to see if they’re arranged side by side with their spines facing out so people can view the titles at a glance.

The easiest way to accomplish that is to line them up on a bookcase or shelf. But don’t use a bookcase you’re also planning to sell because if someone buys it, you’ll have to remove all the books in a hurry and find a new location for them.

You can also display books by lining them up in a box with their spines facing up. Or if you have a smaller selection of books, you can fan them out on a table faceup so shoppers can see their covers.

Whatever you do, don’t stack books in boxes or pile them on tables so shoppers have to lift each one out of the way to see what’s below it. For all but the most dedicated book buyers, that’s simply too much work to be worth it.

These same display ideas work well for audio or video recordings, including CDs, DVDs, video game cartridges, records, and cassettes. (Yes, there are still people who have held onto their old boomboxes and are willing to buy tapes if they’re cheap enough.) Make the titles visible, and don’t force your buyers to dig.

Furniture & Home Goods

When displaying furniture at a yard sale, consider what type of buyer it would appeal to.

Place sturdy pieces suitable for families near the street, where they’ll draw buyers in. Older, worn-out pieces might appeal to students furnishing a dorm room or DIY fans looking for pieces to make over. Display these pieces farther back but with prominent labels indicating their low prices.

Antique furniture creates a bit of a dilemma. On one hand, it’s an appealing item that can attract shoppers. However, if you place a lightweight piece too close to the street, an ambitious thief could snatch it when you turn your back. Large and heavy furnishings can go in the front, but it’s best to place smaller ones close to the checkout where you can keep an eye on them.

For smaller home decor, consider maximizing its visual appeal by creating little vignettes.

For instance, you can toss a bedspread over a couch to show off its pattern and add a couple of matching throw pillows. To sell a set of dishes, lay out one whole place setting on a table, complete with a napkin and flatware, and keep the rest stowed in a box.

Finally, if you’re selling old electronics, make sure you have all their parts — remotes, cords, and the manual if you have it — bundled along with the primary equipment. You can wrap them up and stash them in a clear plastic bag taped to the side.

Customers will appreciate being able to see at a glance that the equipment has all the necessary parts. And if they want to test the device to make sure it works, all the pieces they need are available. Consider running an extension cord to the house for testing purposes or at least having one handy for shoppers to use.

5. Make Space for Everything

Ideally, most of the goods at your yard sale should be on tables, so shoppers don’t have to bend down to look at them. If you don’t have enough tables to display your wares, borrow from neighbors or friends.

Also, look for ways to create more “table” space from scratch. For instance, you can lay plywood over a pair of sawhorses, milk crates, or even cardboard boxes. You can also use any naturally elevated surfaces in your yard, such as porch steps or retaining walls.

If you’ve tried all these tricks and still don’t have enough table space for everything, prioritize. Reserve your table space for high-value merchandise you really want buyers to see and delicate pieces that could break if left on the ground. Everything else can go on blankets or tarps.

Set out comfortable chairs for yourself and any helpers so you don’t have to spend the whole day on your feet. Set them near a small table or another surface you can use for making change and bagging purchases.

6. Promote Your Sale

No matter how good your yard sale looks, it won’t attract customers if no one comes close enough to see it. That’s why even the best yard sale needs adequate signage.

Before putting up signs, check to see if your town has any regulations about them.

For instance, it might regulate how many signs you can put up, how large they can be, what materials you can use, and where you can display them. It may also have rules about how long before the sale you can put signs up and how long you have after the sale to take them down.

While you’re at it, check all the other local regulations.

Some towns require you to get a garage sale permit, and others limit you to a certain number of sales per year. Putting up signs puts you on the local authorities’ radar, so make sure you’re not running afoul of any rules. Otherwise, the fines could eat into if not exceed your profits.

Once you have any necessary permits and are clear about the signage rules, it’s time to set about making them.

Good yard sale signs are large, clear, and easy to read. Include the address as well as an arrow to point passing motorists in the right direction. If your town allows it, hang signs at all the busiest intersections near your house. From there, leave a trail of signs all the way to your house, pointing shoppers the right way at every turn.

Ensure your yard sale signs include the date and times of your sale as well. I always find it frustrating to see a sign that says, “garage sale,” with an address and no date because I never know if the sale is coming up, currently going on, or already over.

Listing the date and taking down signs once the sale is over ensures shoppers don’t show up on the wrong day.

You can advertise your sale online as well. Sites like Garage Sale Finder exist specifically for this purpose. Many local Craigslist groups have a section for garage sale advertising as well. Other places to put the word out include social media sites like Facebook and Nextdoor.


Final Word

A well-organized garage sale takes more work to set up than a haphazard one.

But putting in this extra effort maximizes the chances your sale will succeed once it gets going. Shoppers are more likely to stop for an attractive sale, and those who stop are more likely to stick around long enough to find something they want to buy.

By taking the time to display your goods well and price them right, you can host a great yard sale instead of just an OK one. And that helps you turn more of your clutter into cash.

Source: moneycrashers.com

What to Know about FHA 203K loans

Buying a fixer-upper is sometimes romanticized by pop culture. While it’s fun to dream, the reality of home renovation is that it can be laborious and draining, especially if the home needs serious help.

Repair work requires energy and resources, and it can be difficult to secure a loan to cover both the value of the home and the cost of repairs—especially if the home is currently uninhabitable. Most lenders won’t take that sort of chance.

But if you have your heart set on buying a fixer upper, an FHA 203(k) loan can help.

The Federal Housing Administration (FHA), part of the U.S. Department of Housing and Urban Development (HUD), insures loans for the purchase and substantial rehab of homes. It is also possible to take out an FHA 203(k) loan for home repairs only, though it might not be your best option if that’s all you need.

If you have the vision to revive a dreary house, here’s info about FHA 203(k) loans and other home improvement loan options.

What Is an FHA 203(k) home loan?

Section 203(k) insurance lets buyers finance both the purchase of a house and its rehabilitation costs through a single long-term, fixed- or adjustable-rate loan.

Before the availability of FHA 203(k) loans, borrowers often had to secure multiple loans to obtain a mortgage and a home improvement loan.

The loans are provided through HUD-approved mortgage lenders and insured by the FHA. The government is interested in rejuvenating neighborhoods and expanding homeownership opportunities.

Because the loans are backed by the federal government, you may be able to secure one even if you don’t have stellar credit. Rates are generally competitive but may not be the best, because a home with major flaws is a risk to the lender.

The FHA 203(k) process also requires more coordination, paperwork, and work on behalf of the lender, which can drive the interest rate up slightly. Lenders also may charge a supplemental origination fee, fees to cover review of the rehabilitation plan, and a higher appraisal fee.

The loan will require an upfront mortgage insurance payment of 1.75% of the total loan amount (it can be wrapped into the financing) and then a monthly mortgage insurance premium.

Applications must be submitted through an approved lender .

What Can FHA 203(k) Loans Be Used For?

Purchase and Repairs

Other than the cost of acquiring a property, rehabilitation may range from minor repairs (though exceeding $5,000 worth) to virtual reconstruction.

If a home needs a new bathroom or new siding, for example, the loan will include the projected cost of those renovations in addition to the value of the existing home. An FHA 203(k) loan, however, will not cover “luxury” upgrades like a pool, tennis court, or gazebo (so close!).

If you’re buying a condo, 203(k) loans are generally only issued for interior improvements. However, you can use a 203(k) loan to convert a property into a two- to four-unit dwelling.

Your loan amount is determined by project estimates done by the lender or the FHA. The loan process is paperwork-heavy. Working with contractors who are familiar with the way the program works and will not underbid will be important.

Contractors will also need to be efficient: The work must begin within 30 days of closing and be finished within six months.

Mortgage LoanMortgage Loan

Temporary Housing

If the home is indeed unlivable, the 203(k) loan can include a provision to provide you with up to six months of temporary housing costs or existing mortgage payments.

Who Is Eligible for an FHA 203(k) Loan?

Individuals and nonprofit organizations can use an FHA 203(k) loan, but investors cannot.

Most of the eligibility guidelines for regular FHA loans apply to 203(k) loans. They include a minimum credit score of 580 and at least a 3.5% down payment.

Applicants with a score as low as 500 will typically need to put 10% down.

Your debt-to-income ratio typically can’t exceed 43%. And you must be able to qualify for the costs of the renovations and the purchase price.

Again, to apply for any FHA loan, you have to use an approved lender. (It’s a good idea to get multiple quotes.)

Home Improvement Loan Options

The FHA 203(k) provides the most comprehensive solution for buyers who need a loan for both a home and substantial repairs. However, if you need a loan only for home improvements, there are other options to consider.

Depending on the improvements you have planned, your timeline, and your personal financial situation, one of the following could be a better fit.

Other Government-Backed Loans

In addition to the standard FHA 203(k) program, there is a limited FHA 203(k) loan of up to $35,000. Homebuyers and homeowners can use the funding to repair or upgrade a home.

Then there are FHA Title 1 loans for improvements that “substantially protect or improve the basic livability or utility of the property.” The fixed-rate loans may be used in tandem with a 203(k) rehabilitation mortgage.

The owner of a single-family home can apply to borrow up to $25,000 with a secured Title 1 loan.

With Fannie Mae’s HomeStyle® Renovation Mortgage, homebuyers and homeowners can combine their home purchase or refinance with renovation funding in a single mortgage. There’s also a Freddie Mac renovation mortgage, but standard credit score guidelines apply.

Cash-Out Refinance

If you have an existing mortgage and equity in the home, and want to take out a loan for home improvements, a cash-out refinance from a private lender may be worth looking into.

You usually must have at least 20% equity in your home to be eligible, meaning a maximum 80% loan-to-value (LTV) ratio of the home’s current value. (To calculate LTV, divide your mortgage balance by the home’s appraised value. Let’s say your mortgage balance is $225,000 and the home’s appraised value is $350,000. Your LTV is 64%, which indicates 36% equity in the home.)

A cash-out refi could also be an opportunity to improve your mortgage interest rate and change the length of the loan.

PACE Loan

For green improvements to your home, such as solar panels or an energy-efficient heating system, you might be eligible for a PACE loan .

The nonprofit organization PACENation promotes property-assessed clean energy (or PACE) financing for homeowners and commercial property owners, to be repaid over a period of up to 30 years.

Home Improvement Loan

A home improvement loan is an unsecured personal loan—meaning the house isn’t used as collateral to secure the loan. Approval is based on personal financial factors that will vary from lender to lender.

Lenders offer a wide range of loan sizes, so you can invest in minor updates to major renovations.

Home Equity Line of Credit

If you need a loan only for repairs but don’t have great credit, a HELOC may provide a lower rate. Be aware that if you can’t make payments on the borrowed funding, which is secured by your home, the lender can seize your home.

The Takeaway

If you have your eye on a fixer-upper that you just know can be polished into a jewel, an FHA 203(k) loan could be the ticket, but options may make more sense to other homebuyers and homeowners.

SoFi offers cash-out refinancing, turning your home equity into renovation money.

Or maybe a home improvement loan of $5,000 to $100,000 seems like a better way to turn your home into a haven.

Check your rate today.



SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.

SoFi Home Loans
Terms, conditions, and state restrictions apply. SoFi Home Loans are not available in all states. See SoFi.com/eligibility for more information.

Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

Investing during a recession

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

When things get lean, it’s natural to want to tighten your belt and save money wherever possible. But should you stop investing completely? It’s an entirely personal decision. Get some facts and insights about investing during a recession below to help you determine what will work for you.

Is It a Good Idea to Invest During a Recession?

It depends on a few factors, including what you’re referring to when you say “investing.” If you’re talking about funding a 401(k), you probably want to continue doing so unless you would be unable to pay your necessary bills and living expenses.

But if investing means the stock market or other similar options, you should seriously consider your financial situation. If you already have emergency savings and have disposable income to risk, investing can be an option. This is especially true if you won’t be touching your portfolio for a while, so you have time to weather the ups and downs associated with a recession economy.

But you do want to be aware of the bear market trap so you don’t fall into it. Bear traps occur when a lot of investors have bought into certain stock. This increases the selling pressure, which just means that there are buyers for the stock but not a lot of stock to be had.

Institutions that want the stock to move higher may push prices lower via short sales or other strategies, making it appear as if the prices are falling. That can scare people into selling the stock. In the long run, however, the stock maintains its price or increases in value, so selling early can mean losing out on future gains. This is just one reason you might want to work with a professional advisor when investing.

7 Tips for Investing During a Recession

1. Be Patient and Think Long-Term

Buying and selling stocks rapidly to turn huge profits is mostly an event seen in movies and television. And while it’s not impossible for pros to luck into a big win, this is not typically how individuals should look at investing. It may take time for your investments to pay off, especially if the economy as a whole is struggling, so it’s important to avoid being guided by emotions and rely on logic and sound financial advice.

2. Commit to a Personal Investment Plan

A personal investment plan is a written document that includes your financial goals and what types of limitations you might have, such as what you can afford to spend on investing. Creating such a document ensures you have a logical, well-thought-out guide to turn to when things do get tricky. If you feel tempted by a seemingly perfect investment, for example, your plan can remind you what you can realistically put into this new investment.

3. Use the Dollar-Cost Averaging Strategy

Dollar-cost averaging is a strategy used by many investors, including some professionals. Its goal is to potentially reduce the volatile nature of a single purchase. The DCA strategy works like this:

  • You decide how much you’re going to invest in certain assets within a set period
  • You divide that budget over that time and make periodic purchases of the asset
  • You do this despite the price of the asset at any given time

The goal is to build up the investment for a long-term gain strategy. This is actually how most 401(k) investments are managed.

4. Focus on Quality Over Quantity

But don’t think that you have to buy tons of assets to be investing for the future. If you have limited funds to invest with, it can be tempting to buy up stock that is cheap just to get some quantity. But cheap stock isn’t always a great investment, and it might be better to buy a smaller number of shares in a well-trusted company with a history of strong stock performance.

5. Consider Funds Instead of Individual Stocks

Another option is to consider funds, which spread your investment over numerous stocks. You’ve probably heard that you have to diversify your portfolio. That just means investing in numerous types of assets so that if one doesn’t perform well, you have other gains to make up for the loss.

A mutual fund is an investment option that’s already diversified, for example. Plus, it’s a convenient way to add numerous assets to your equity portfolio without buying and managing numerous stocks yourself.

6. Rebalance When Necessary

While investing is a long-term strategy, active investing can’t be a set-and-forget strategy. You have to make efforts to rebalance your portfolio—or ensure someone is doing that for you—from time to time.

Rebalancing just means aligning your assets with your target goals. For example, you might have a goal of 60% in stocks and 40% in other assets. But if your stocks gain rapidly during a few years, outpacing the gains of your other assets, you could have a 70/30 split. If your goal is still 60/40, you would rebalance by selling stock, purchasing other assets or both.

7. Invest in Recession-Resistant Industries

Recession-resistant industries are those that don’t tend to succumb to downturns in the economy, often because they’re necessary. Examples of industries that have historically weathered recessions well include healthcare, technology, beauty, retail, construction and pet products.

Note that because a company is in a recession-resistant industry doesn’t mean that company itself is necessarily resistant. It’s always important to be discerning about which stocks you invest in. For example, if the company doesn’t have strong financial leadership or has known money problems, it may not matter what industry it’s in.

Review Your Finances and Decide What’s Best for You

Ultimately, only you can decide whether investing during a recession is right for you. Start by reviewing your own finances. Some things you might want to look at include:

  • What kind of savings you have. Having emergency savings is important, especially in a recession. Before you start investing, you may want to build yours.
  • Your income and expenses. You need disposable income before you can invest. That means that your income should be more than your expenses.
  • Your credit history. Buying stocks and investing typically doesn’t rely on you having good credit. But before you start building wealth, get a good look at your credit reports to ensure there’s nothing lurking that you might need to attend to. If you find any surprises, consider reaching out to Lexington Law for help disputing inaccurate items and working to make a positive impact on your credit.

And if you do decide to invest—during a recession or otherwise—consider working with a financial advisor to help you navigate the complexities of managing your portfolio.


Reviewed by John Heath, Directing Attorney of Lexington Law Firm. Written by Lexington Law.

Born and raised in Salt Lake City, John Heath earned his BA from the University of Utah and his Juris Doctor from Ohio Northern University. John has been the Directing Attorney of Lexington Law Firm since 2004. The firm focuses primarily on consumer credit report repair, but also practices family law, criminal law, general consumer litigation and collection defense on behalf of consumer debtors. John is admitted to practice law in Utah, Colorado, Washington D. C., Georgia, Texas and New York.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

8 Tips for How to Sell on Craigslist

Most of us have probably taken a deep, exasperated breath while surveying our homes, wondering how we managed to accumulate so much clutter. But there might be a way to turn that clutter into cash. It comes down to one word: Craigslist.

8 Tips for Selling on Craigslist

Selling on Craigslist seems easy, but it requires some know-how to get the intended result and money in your wallet. We scoured the Internet for the best tips.

So list that chair you’ve always hated. We’re here to help you find success and sell more of your items on Craigslist.

1. Take Photos That Work

Ever seen a Craigslist listing with an object you can’t quite make out? Is that a nightstand or a coffee table? Are they selling the whole dining room table set or just one chair?

A good photo can make your listing stand out while a bad photo has the potential to shut down any business. Take a good photo by posing your object in a well-lit spot, whether it’s in natural light or a warm artificial glow, and focus on the details that make your object special. Only photograph what you’re selling — leave extraneous things out of the picture.

2. It’s In the Details

Your listing can’t simply be a photo and the name of the object. You need a description and any relevant details — think dimensions or number of items or even age of the item, if relevant. It’s ideal for your listing to answer all of the questions a potential buyer might have so they don’t have time to really agonize over their purchase.

3. Tell the Truth

That being said, it’s important to be honest in your listing. If your couch has stains or your wooden dresser is chipped, add images that show the damage. Point that out to potential buyers in your description. People will be more likely to buy an item when they feel they are getting an upfront understanding of it.

One example: do not post the catalogue image of your piece of furniture from when it was brand new. (People do this.) Take a photo of your furniture piece as is — after all, that’s what you’re selling.

4. Be Simple

While you should absolutely share relevant details, there’s no need to tell the story of how your kids bounced around on these couch cushions or how the table was passed down in the family generation after generation. Potential buyers know they’re browsing for a used object, but they don’t want the legacy that comes with it. They want it to feel like their own.

And stick to simplicity in your listing title. Potential buyers often search for specific objects — trash cans or mirrors — and they likely won’t be searching with various adjectives.

5. Offer Delivery

Potential buyers love it when Craigslist sellers offer delivery. It’s an added perk and makes things easier, especially when the site caters to people from all over. Make sure to add a higher cost for delivery — whatever seems worth it to you based on location — and be safe. Bring someone along with you when you go to deliver.

6. The Price is Right

It really does boil down to whether the asking price is right. Craigslist is known for sellers that practically give items away, so it’s better to price your listing lower rather than higher. Interest is always key, and if you price it too high, you may have no takers.

But make sure you price your item at a level with which you’re comfortable. It’s not worth giving something away if it has sentimental value and you think it can go for more.

7. Reach Out to Your Network

Word of mouth is a powerful tool. If you think you might know someone in your social network — whether that’s Twitter, Facebook, Instagram or more — who might be interested in what you’re selling, share it on those forums.

And better yet, if you have a specific buyer in mind, feel free to be direct and share your listing with friends and family. If it doesn’t work for them, they may know the right person.

8. Always Be Safe

Always remember that you are dealing with strangers online on Craigslist. If someone is coming to your house or you are going to theirs, have a friend with you. Don’t assume that you will be fine if you are alone. Entering a stranger’s house or allowing a stranger to enter yours always comes with risk. It’s better to be prepared and meet in a public place if that is the only way the meeting can take place.

Writer Elizabeth Djinis is a contributor to The Penny Hoarder, often writing about selling goods online through social platforms. Her work has appeared in Teen Vogue, Smithsonian Magazine and the Tampa Bay Times.

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Source: thepennyhoarder.com

Common Credit Score Mistakes

Here at Credit Absolute we’ve helped our fair share of clients who have just been dealt a bad hand and everything went bad at once, destroying their credit score.

One of the more extreme case was with one of our clients who had been laid off during the recent recession. This caused him get behind on car and mortgage payments for several months before finally going into foreclosure, having his car repossessed, and maxed out credit cards.  This left him drowning in debt and when he finally found new employment, the previous lenders began garnishing his wages, making it nearly impossible to pay his current bills, let alone pay off old debt. He was then forced to file bankruptcy and is now working to rebuild his credit after years of bad luck ruined his credit.

There are definitely situations like this that may be out of your control and your bad credit score may just be the result of bad luck, but in most cases it has more to do with poor credit habits and common credit mistakes. While derogatory marks on your credit report do eventually fall off, it does take awhile. So it’s important to make sure you avoid these common mistakes.

Common Credit Score Mistakes That Can Kill Your Credit Score

While some unforeseen circumstances may be unavoidable, there are quite a few different things that can negatively affect your credit score and should be avoided whenever possible. Here are a few common mistakes that people with low credit scores tend to make:

  • You Close Old Credit Card Accounts

A large part of your credit score is determined by your credit history and by keeping your old credit cards can help improve your credit score. You will still need to occasionally use those cards to keep them “active” but you definitely don’t want to close out old cards.

  • You Take Too Long To Shop For The Best Rate

This is a very common mistake among new home and car buyers who have been advised to shop around for the best rates. While it is definitely recommended to search around for the best rates when buying a car or home, you want to avoid having your credit checked numerous times by shopping too long for a good rate. One tip to help avoid this mistake is by working with a mortgage broker; they can run your credit once but will still have access to numerous mortgage companies in order to find you the best rate without having to re-run your credit for every lender.

  • You Don’t Use Credit, Even Though You Have Access To It

Sadly, this happens far too often and, while it may not hurt your credit, it is a lost opportunity that could be helping you maintain a good credit score. If you have credit cards that you’ve perhaps had for years and no longer use, you’re missing out on a great opportunity to improve your credit. Credit that isn’t being used won’t help your credit score so make sure that you’re using your credit card at least a few times a year to ensure it stays “active” and continues to benefit your score.

  • You Max Out Your Credit Cards

While this mistake isn’t always done intentionally – many people max out their credit cards because of unexpected financial burdens – many people are unaware that they are severely hurting their credit score by maxing out a credit card. Try to avoid using more than 50% of your available credit (preferably less than 30%) to maintain a good debt to credit ratio which will help increase your credit score.

  • You Became A Co-Signer

This can be a sensitive matter of conversation because co-signing often involves two people who are very close and trust each other enough to risk their credit on behalf of the other. Unfortunately, many people haphazardly co-sign without a second thought and without considering the implications of the matter. Before co-signing, make sure that the person you’re co-signing for isn’t a likely risk of delinquency. If they stop paying, you start paying with bad credit – you could also be held accountable for the remainder of the debt as well.

  • You Don’t Worry About “Just One” Missed Payment

According to FICO, “Delinquent payments, even if only a few days late, and collections can have a major negative impact on your FICO Scores.”

Far too often people will neglect to pay their bills on time simply because they forget to, are too busy, or simply don’t think it’s a big deal if they’re just a few days late. Unfortunately this can severely impact your credit score, lowering it substantially. Avoid late payments whenever possible and set reminders if you have the tendency to forget.

Rebuild Your Credit

Whether you’ve been the subject of Murphy’s Law and been rained on with horribly bad luck, resulting in a low credit score, or you’ve just inadvertently made some poor choices that have caused your score to drop, Credit Absolute can help rebuild your credit score quickly and affordably. Don’t continue to be dragged down by poor credit and high interest rates, contact us today for a free consultation!

Source: creditabsolute.com

5 Tips for Approaching the Open House

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For decades, sellers and their agents have been using open houses to help generate interest in their listings. Open houses give the general public the chance to view a home without scheduling a private showing. While open houses do get a lot of curious neighbors and casual browsers, they can be a good opportunity for serious buyers to decide if a home is worth pursuing further, or a way to get a better grasp on neighborhood home values. 

In fact, 59% of home buyers attended an open house during their shopping process last year and 43% of buyers said attending the open house was very or extremely important to determining if the home was right for them.* On average, home buyers attended 2.6 open houses before buying.

Whether you’re a sincere buyer or simply curious about the inside of a home, you should know how open houses work and understand how you can be a good open house attendee. 

Note: If open houses are restricted or unavailable due to public health concerns, work with your agent to arrange a private tour or video tour. All Zillow-owned homes include a self-tour option — just use our app to unlock the door and tour at your convenience.

What is an open house?

An open house is an event during which potential buyers can tour a home that’s on the market. It’s usually hosted by the seller’s listing agent, or by the seller themselves, in case of a for-sale-by-owner (FSBO) listing. Open houses usually take place on weekends, during a set range of hours typically midday.

Open house benefits for buyers

No scheduling required: Unlike a private showing, you don’t need to set up a specific appointment to see a home. Simply show up during the open house hours and view the home at your own pace. 

Scope out the competition: If you’re interested in a home, attending the open house can help you gauge interest from other buyers. This can be helpful when determining how quickly you need to submit an offer and how much you should offer. 

Understand current home values: Seeing what homes are selling for in your area and what you can buy at a particular price point can be helpful if you’re just starting your search. 

Redefine your nonnegotiable home features: Checking out homes in person can help you redefine your list of must-haves: Do you really need that extra bedroom? What does a backyard of this size really look like?

How do open houses work?

Not every seller or listing agent will hold one, but here’s the typical process for sellers setting up an open house:

  1. The seller and their agent determine a day and time for the open house.
  2. The agent lists the open house on the local MLS.
  3. The agent advertises the open house on social media, online and with print ads or flyers. 
  4. The agent prepares for the open house — purchasing refreshments, printing flyers, setting up signs and adding little touches to make the home feel welcoming to buyers. (Yes, as a shopper, you can eat the cookies.)
  5. The agent hosts the event, greeting buyers and answering questions about the property and community.
  6. Buyers remove their shoes, tour the home, take pictures and video (if allowed) and jot down important notes. 
  7. Any buyer who liked the house will contact their own agent. They’ll then set up a private showing to see the home again or they’ll submit an offer right away — the latter is common in fast-moving real estate markets.

Who hosts an open house?

The person hosting an open house could be any one of the following: 

  • Listing agent: As the person hired to sell the home, the listing agent should be an expert on the property. 
  • Listing agent’s team member or associate: A busy listing agent may also send another agent in their place — either someone on their team or another agent in their office. They should be experts in the local market, but may not be as familiar with the individual home. 
  • Homeowner: If a home is for sale by owner (FSBO), the homeowner will be hosting their own open house. They’re undoubtedly the expert on the home, but their local market expertise may be limited. 

How to prepare for an open house

There are times when you might just stumble upon an open house while you’re on a walk or running errands. But if you’re intentionally looking for open houses as part of your home-buying strategy, try these tips.

Seek out relevant open houses

If you plan to visit multiple open houses in one day, make sure you’re focusing on listings that fit your criteria for budget and location. It’s not worth wasting time looking at homes outside your budget or those that are too far from your work or school. 

Tip: With Zillow’s home search tool, buyers can filter by homes with upcoming open houses (this filter can be applied in addition to other search filters like price, bedrooms, bathrooms, square footage and location). When you use the open houses filter in conjunction with filters for your other criteria, you can easily find the right open houses for your search.

A map of home listings on Zillow.

You can also tour most Zillow-owned homes any time between 6 a.m. to 8 p.m., any day of the week — just select the tour option on the listing. Although the listing agent will not be present, you can avoid a busy open house and rest assured the property is in move-in ready condition.

Do research on the market beforehand

With help from your agent or on your own, find out how each home you’re planning to visit stacks up against others nearby. Is the price in line with similar listings in the area? Are there any defects? Has it gone under contract recently and then returned to the market? Are there a lot of other interested buyers? Has it been sitting on the market for a long time? (“Days on market” is an indicator of a stale listing, but the standard number of days on market can vary based on where you live.)

Stay open-minded

If you’re searching on a tight budget in a hot neighborhood, there’s a good chance that the home that fits the bill will need some TLC. Fortunately, attending an open house can give you a better idea of the home’s condition and potential, while also giving you the opportunity to ask renovation-related questions — e.g., the location of load bearing walls and the details of local regulations. 

How to attend an open house

Now that you’ve done your research and are prepared to add some open houses to your home search, here’s what you should do once the day arrives. 

Ask questions

An open house is your best opportunity to ask the listing agent (or their associate) your questions — don’t be shy. Ask questions that you wouldn’t be able to answer just by reading a home’s listing description, such as:

  • What are the HOA restrictions?
  • Has the seller done a property tax appeal?
  • Have there been any recent renovations or repairs?

Tip: If you’re not currently working with an agent and you ultimately decide you aren’t interested in a particular home you tour, the open house could help you see if the listing agent might be the right person to represent you — many agents represent both buyers and sellers. 

Be honest

If anyone other than the listing agent or the homeowner is hosting the open house, they’re likely an agent hoping to find potential buyer clients. If you’re already working with an agent (or if you have no real interest in buying), be honest.

Check for damage and disrepair

Professional or edited photos can make a home look a lot better online than it is in person. At an open house, take the opportunity to closely evaluate a home’s condition and take note of any potential defects that would factor into your offer price. 

Assess the windows: Look for flaking paint, misaligned sashes and condensation due to air leaks. These could be signs of windows that need replacement. 

Check for water damage: Look for warped baseboards, ceiling stains and musty smells. 

Make note of cracks: Noticeable cracks in the ceiling or drywall could indicate foundation issues. 

Test functions: Open cabinets, doors and drawers. Run the faucets. Check the water pressure. An open house is a good opportunity to make sure every part of the home is in good working order. 

Gauge potential renovation needs: Home improvements can really add up. As you walk through a home, keep an eye out for urgent renovation needs like floors, fixtures or large repainting projects.

Open house tips for buyers

Whenever you attend an open house, put yourself in the seller’s shoes — you’re letting a bunch of strangers walk through your home while you’re not there. While every seller wants their open house to net a buyer, they also want to keep their home safe and their furnishings free of damage.

Do

  • Take off your shoes or wear booties if requested.
  • Greet the host and provide your name.
  • Sign in if necessary or requested (this is a safety issue for the seller and their agent).
  • Take notes on your phone about your likes, dislikes and follow-up questions.
  • Ask if you can capture a video (if the listing doesn’t already include a video).
  • Respect other buyers and guests. 
  • Wait for others to exit a room before you enter.
  • Provide feedback if requested.
  • Thank the person hosting the event.

Don’t

  • Refuse to comply with an agent or homeowner’s house rules.
  • Criticize the home or the owner’s style.
  • Listen in on other visitors’ conversations.
  • Touch the owner’s belongings.
  • Let kids run around without supervision.
  • Bring food or beverages in (except water).
  • Reveal information that would compromise your negotiating power, like your budget or level of interest in the home.
  • Bring pets.

*Zillow Group Consumer Housing Trends Report 2019 survey data

Source: zillow.com