Cheryl Bourland's blog

These Home Money Pits Hide in Plain Sight

With the exception of major issues such as foundation repairs or flooding, homes are rarely the nightmarish money pits exaggerated for comedic effect in the 1986 movie of the same name. However, many homes do contain smaller money pits that hide in plain sight by draining your wallet slowly over time. These little problems never draw enough attention to warrant solving, but doing so can save you a shocking amount of money in the long run. Keep reading to learn about 5 of the most common home money pits and how you can eliminate them!

Don't Be Afraid to Refinance Your Loan

Homeowners consistently fail to refinance their mortgages, even when doing so could save them thousands of dollars in interest. This is the finding made by researchers at Columbia Business School whose work was recently published in The Review of Financial Studies. After examining mortgage refinancing data from November 2011 through March 2013, the researchers determined that 51% of homeowners who received preapproval applications through the Home Affordable Refinance Program chose not to apply, a decision which cost them each nearly $9,000 in savings.

Study Shows FSBO Results in Significantly Lower Sale Price

If you've ever sold a home, chances are good that you thought about doing it yourself. For Sale By Owner (FSBO) lures in home sellers with promises of paying no commission and not dealing with an agent, but it also comes with important disadvantages. In fact, a study from 2017 found that homes sold without an agent do so at a significantly lower price on average, meaning that these owners ended up avoiding a commission at any cost (even if it meant losing money)!