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4 Red Flags to Look for Before Accepting an Offer on Your Austin Home

By U.S. News & World Report

For those selling an Austin home, the real estate market is particularly sunny. In fact, multiple-offer situations are common in Texas’ capital city. But those evaluating multiple offers must be on the hunt for possible drawbacks. After all, some deals are weaker than others.

“It’s not always about price; that’s a driver and a factor, but you want to consider the other terms of the offer,” says Brandy Guthrie, Realtor at Sky Realty and president of the Austin Board of Realtors. “Look at the offer as a full picture, take into consideration all the components and find the one that best fits your needs.”

[Read: 5 Things to Know About Selling a Home in Austin.]

Before you accept an offer on your house, a few of Austin’s top real estate agents, as identified by real estate technology company Agent Explore (a U.S. News partner), say to look for these red flags that could take your home from “sold” to “back on the market.”

A prequalification letter instead of a preapproval letter

Although receiving a prequalification letter sounds like a plus, it isn’t as strong as receiving a preapproval letter. If you’re unsure about a prequalification letter’s worthiness, ask your agent about the lender. Your agent can also reach out to the lender to ask about the potential buyer’s ability to purchase.

“Visit the lender to ensure they’ve gone through the necessary steps to get an actual approval, not just a prequalification letter,” Guthrie says. “The difference is with a prequalification letter, they’ve looked at the buyer’s credit, but with a preapproval letter, they’ve received their documents, verified income and verified assets so it holds more weight.”

As a seller, you want a financially sound buyer whose offer doesn’t raise concerns about his or her ability to complete the transaction. Having a preapproval letter over a prequalification letter will eliminate variables and make the process easier.

A home sale contingency

“The buyer already has the ability to terminate for any reason because of the option period, so if you have other contingencies like the sale of another home, that to me is a red flag,” says Ben Caballero, CEO and president of HomesUSA.com. “If you have multiple offers, I wouldn’t even consider that sort of thing, no matter what the price is.”

[Read: 5 Ways to Sell Your House in Austin Fast.]

If the offer includes a contingency like the sale of the buyer’s home, strongly consider reviewing other offers. Although the buyer may say his or her home will close in a short period of time, any change could kill your sale.

A slow closing timeline

“If someone doesn’t want to close for two months, why? And does the answer make sense and do you want to take that risk?” Caballero says. “Things like accidents, divorce or job loss can happen, and you want to close as quickly as possible to eliminate the potential for a problem to arise.”

Don’t be shy about asking your agent for clarification as to why the buyer wants an extended closing date. You need to be comfortable with the deal and if you’re unsure or wary about the wording or timetable, reach out to your agent with questions.

[Read: 5 Things to Do Now Before Selling Your House in Austin This Spring.]

Guthrie recommends looking at the timeline within the offer to ensure the seller is protected. She says a real estate agent should be able to point out potential risks to determine which offer is best or whether there needs to be a counter offer. Making sure the closing timeline is beneficial to you, the seller, before you accept an offer is a good way to secure your home’s sale.

A long option period with a minimal option fee

Having a long option period when the buyer has the right to terminate the contract for any reason increases your chance of having your home sale fall through. “You don’t want the property tied up with the ability for a buyer to cancel and then miss out on other potential buyers,” Guthrie says. “The least amount of time the property is held during the option period is best because it’s more likely to move forward.”

You want your option period to be as short as possible — Caballero says anything over 10 days should feel suspicious. Additionally, if the buyer offers a tiny option fee, such as $50 to $75, that’s another red flag. “Why are they offering such a low fee since it’ll be applied to the sales price? They’re either looking at multiple properties or they’re investors who are just going to flip the property,” Caballero explains.

Both expert real estate agents agree, though, that every seller is unique and each offer must be evaluated based on how well it meets the seller’s needs. Create a spreadsheet to look at the variables, like price, closing date, contingencies and down payment, to make it clear who the best buyer for your home is. But, if, despite your due diligence, the deal falls through, get a release of the contract and get the home back on the market as soon as possible.

Looking for a real estate agent in Austin? U.S. News’ Find an Agent tool can match you with the person who’s most qualified for the job.

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4 Red Flags to Look for Before Accepting an Offer on Your Austin Home originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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