Next to your home and car, home furnishings represent the most expensive product purchases homeowners make. A mid-quality livingroom set, with sofa and two side chairs, can cost thousands of dollars. That’s why most furniture retailers offer “interest free” and “pay much later” deals to soften the blow.
These are basically financing options.
Say, for example, you want to purchase furniture for the rec room. The cost is $7,200. The furniture retailer may offer you a deal where you “don’t pay a cent” for six months. As long as you pay the balance within that time, no interest is charged.
That sounds like a sweet deal. And it is.
But, personal finance experts will advise you to tread carefully. If you pay off the balance within the “no interest” timeframe, you’ll benefit from the sweet deal, by having deferred the payment. However, if you fall behind on payments, you’ll be hit with a high interest charge. It’s often 20% or more. That can add hundreds of dollars to what you would have originally paid for the purchase.
And, even if you paid down most of the balance within the no interest period, you can still get hit hard. Some “no interest” deals charge interest on the original financed amount — not just the remaining balance. The best advice, according to personal finance experts, is to read the fine print carefully and pay off the balance as promptly as you can.
When preparing your home for sale, you need to fix things up, declutter, perhaps slap a fresh coat of paint on a few walls. That’s all part of getting your property ready for buyers.
But there’s another type of preparation that you also need to do. And, the sooner you do it, the less stressful your move will be.
You need to get all your paperwork together.
Here’s what to gather:
- Property documents such as deeds, easements, surveys, liens, etc.
- Mortgage documents, plus any other loans (i.e., line of credit) that use the property as collateral.
- Maintenance and service agreements that may continue with the new owners.
- Warranties and guarantees that are transferrable to the new owners.
- Recent utility bills, such as water, electricity, etc.
- Rentals (i.e., water heater rental.)
- Home security agreements and codes.
- Contracts for any work done on an ongoing basis. For example,
lawn maintenance.
Getting these records together early will ensure you’re not scrambling at the last minute to find them. Some of these documents, such as warranties, also make for attractive selling features.