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Walmart faces FTC scrutiny over AI-era personalized pricing

Filed Under: SUCCESS, The Street

Walmart (WMT) intends to use artificial intelligence to better understand its consumers without raising prices.

As merchants compete to make buying more individualized, this difference is becoming increasingly crucial.

While openly pledging that a customer’s income, past purchases, urgency, or apparent readiness to pay would not influence the price they see, Walmart has been increasing the role AI plays across its digital operations.

The Federal Trade Commission now requests a more thorough investigation.

The agency has demanded information from Walmart and eight other companies about whether and how personal information is used to determine prices, worker compensation, and job offers.

The investigation does not imply that Walmart employs individualized pricing. Walmart makes it clear that it doesn’t.

Rather, the inquiry raises a much more significant question about AI-powered retail: Where does helpful customization stop and customized pricing start when businesses get more knowledge about specific clients?

The response is important to Walmart as its AI approach relies more and more on consumers giving it more information.

FTC scrutinizes how companies set prices

Walmart, Target (TGT), Uber (UBER), Lyft (LYFT), DoorDash (DASH), Instacart (CART), Delta Air Lines (DAL), United Airlines (UAL), and JetBlue Airways (JBLU) received information requests from the FTC.

The organization is interested in learning more about the data, tools, and techniques used by businesses to calculate costs, salaries, and employment offers.

The companies have 45 days after receiving the orders to respond, according to the FTC.

FTC Chairman Andrew Ferguson wants to know if companies use personal data to set prices or offer gig workers for the same product, service, or job.

The dynamic pricing that customers now experience from hotels, airlines, and other companies is not the same as personalized pricing.

In general, dynamic pricing modifies prices in response to variables including supply, demand, timing, and location.

One step further is personalized pricing. A business may use information about a specific customer to determine how much that person is willing to spend.

Location, browsing habits, past purchases, loyalty information, and other personal data might be examples of this.

Delta, JetBlue, and Instacart denied having personalized pricing.

Walmart wants smarter AI without crossing one pricing lineKevin Dietsch / Getty Images

Walmart has already made a major pricing promise

The FTC inquiry arrives after Walmart took an unusually direct public position on the issue.

“We price the product, not the person,” Walmart CEO John Furner said in a September letter to customers.

Walmart says it does not use a shopper’s income, shopping history, urgency, or estimated willingness to pay to establish individualized prices.

Additionally, the firm claims that it will not use any information consumers provide through its AI shopping tools to raise their costs.

Walmart has presented that pledge as a component of a larger commitment to separating price choices from AI-driven customization.

Walmart wants AI to understand what customers want, which makes that difference crucial.

A tailored shopping assistant might know a customer’s frequent purchases, preferred brands, and current product type.

These features have the potential to speed up shopping and boost sales via Walmart’s digital ecosystem.

However, if customers thought the information was used to evaluate how much they could afford or were ready to spend, it could become contentious.

Walmart claims it won’t go over that boundary.

AI makes personalization more valuable and sensitive

Retailers have always made an effort to comprehend their clientele.

AI significantly expands their possible applications for such data.

Without altering an item’s pricing for a specific consumer, Walmart may utilize customer data to enhance search results, provide product recommendations, and assist customers in navigating its vast selection.

Instead, the business claims that its pricing algorithms take into account traditional retail criteria, including inventory, competition, region, expenses, and seasonality.

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Walmart says those systems do not calculate the maximum amount an individual shopper may be willing to spend.

As AI shopping assistants get more sophisticated, that distinction may become more crucial.

Think about what a typical discussion may reveal to a computerized shopping assistant.

Customers may disclose what they need, why they need it, when they need it, and what alternatives they are considering.

The AI can provide better recommendations thanks to the knowledge.

Additionally, if customers believe the information affects their price, it may cause them to become concerned.

Therefore, improved consumer awareness is the source of both the economic potential and the regulatory danger.

Walmart’s bigger challenge is keeping customer trust

The FTC investigation is more than just another regulatory request for Walmart.

It addresses one of the main obstacles that merchants must overcome to include AI into the purchasing experience.

Customers may be more inclined to share information with Walmart if their AI solutions are beneficial.

By making shopping simpler, suggestions more helpful, and purchasing easier, that might improve Walmart’s digital connection with customers.

However, trust is a key component of the concept.

Walmart reaffirmed this stance in October when it once again denied claims that it sets customized rates based on customers’ willingness to pay or personal information.

Walmart said its relationship with customers depends on maintaining that trust.

Investors may have a better understanding of how large retailers and digital platforms truly utilize personal information when establishing pricing thanks to the FTC’s future investigation.

For Walmart, the concern extends beyond whether authorities find a legal issue in the end.

The store is essentially making two promises at once: its AI will become better at understanding specific consumers, but that improved knowledge won’t be used as an excuse to raise prices for those customers.

Deeper customization might boost Walmart’s digital operations without compromising its value offer, as long as it can maintain that line.

The same data that makes Walmart’s AI more beneficial might also become its greatest trust issue if customers start to question it.

Related: Instacart, Walmart, Delta, charging differently? FTC questions

The Hidden Cost of Staying Cash-Only: Why Accepting Cards Is a Growth Strategy for Solo Entrepreneurs

Filed Under: Addicted2Success, SUCCESS

Twenty-two dollars. That’s the average transaction I walked away from on a single Saturday at a farmers market because my card reader was dead and I had no backup plan. I found out later the customer had come straight from the ATM and still wanted to buy. They just didn’t have bills, and I couldn’t take a card.
Most solo sellers treat card acceptance as a nice-to-have they’ll get to eventually. That framing is backwards. Every cash-only booth quietly filters out buyers, and the filter gets tighter every year as fewer people carry paper money. mobile credit card processing closes that gap, and I’m not being dramatic when I say it saved more of my own bookings than any ad I ever ran.
Here’s what I want to cover: the real cost of the cash-only habit, a simple framework for deciding when to add cards, and the exact setup steps that took me one afternoon to finish. If you sell at markets, pop-ups, or from your car, this is for you.
What does cash-only actually cost you?
The answer isn’t just the sales you lose at the moment. It’s the repeat business that never starts, the awkward “do you have cash?” fadeout, and the friends of that customer who hear “they don’t take cards” and skip your booth next weekend. I keep a notebook from my first season and the pattern is ugly. On days I only took cash, my average sale was noticeably smaller than on days I had a reader. It wasn’t the product that changed. It was the friction. When a customer has to hunt for an ATM, they either buy less or buy nothing, and I never got a vote.
There’s a second cost most sellers ignore: point-of-sale disputes. According to the Federal Trade Commission, consumers have dispute rights on card purchases, and that’s actually good for your reputation. Card transactions leave a trail. Cash transactions leave you with a “he said, she said” and a bad review if a customer forgets what they paid.
Bottom line: cash-only isn’t a money-saving strategy. It’s a quiet discount you give to your competitors who already swipe.
The Three-Strike Rule for adding card payments
I built a simple test after a brutally slow June, and I still use it. I call it the Three-Strike Rule, and it requires nothing more than a tally sheet.
Strike one: you turn away a customer who wants to pay by card. Tally it.
Strike two: a customer at a booth or event asks if you accept cards before asking about prices. Tally it.
Strike three: you finish a market day and the cash in your pocket doesn’t match the number of people who browsed your table. Tally it.
When any of those tallies hits five in a month, it’s time. Not next season. Now. Five strike-marks means you’ve already done enough research to know card acceptance is a real gap, and the reader you buy pays for itself faster than most sellers expect. That’s the number that finally got me out of my own way.
I’d pick a mobile reader on a phone or tablet over a countertop terminal if I were starting over. You carry it, it fits in a tote, and it works at a table, a tailgate, or a client’s front step. The big fixed terminals are great for storefronts. They’re dead weight for anyone who moves.
The one-afternoon setup
Getting set up is less mysterious than most sellers assume. Here’s how I’d walk you through it if you were standing at my table.
Write down how you actually get paid today. Cash, checks, Venmo, invoices, and any online orders. Know the shape of your revenue before you pick a tool.
Pick a reader that fits your workspace. Confirm it pairs with the phone or tablet you already own, and check that you can run it from a battery if there’s no outlet at your spot.
Test a real transaction before your first market. Swipe your own card for a low amount, watch the receipt land, and refund it. Now you know the whole loop works.
Set up a text or email receipt option. Buyers who get a receipt in their inbox are easier to bring back, and you get a contact for the next event.
Give yourself a printed fallback. A small sign that says “cards welcome” pulls people in faster than you’d think.
The step most people skip is number three. I’ve watched sellers show up with a reader fresh out of the box and no idea if it holds a charge. Don’t be that seller. Do the boring test on a Tuesday.
Where card acceptance pays off most for small operators
Every solo business I’ve watched grow has a story about one channel that unexpectedly opened up. For me, card acceptance did two things at once: it made the in-person sale easier, and it gave me a record I could show when applying for bigger opportunities. That second part matters more than people realize. Small businesses are a huge share of the American economy. The U.S. Census Bureau tracks businesses with no paid employees, and that group is enormous. When you want to grow beyond a single booth, buyers and partners want to see proof you move money. Card records are that proof.
The compounding effect: a single change in how you take payments shows up in four places at once. Larger average tickets, less abandoned interest, a clean paper trail, and a story you can tell on a website or application. That’s a lot of return for one piece of equipment.
Make the switch now, before the next market
The cash-only habit feels safe because it’s familiar. It isn’t safe. It’s expensive, and the expense hides in plain sight, one walkaway customer at a time. If you’ve been waiting for a sign to add card payments to your booth, this is it. Run the Three-Strike tally this week. Set up the reader before your next event. Test it on a Tuesday, so Saturday runs smoothly. Here’s the question I’d ask yourself: how many $22 opportunities are you willing to hand to the seller at the next table? If the answer is fewer than the ones you’ve already lost, you know what to do next.
The post The Hidden Cost of Staying Cash-Only: Why Accepting Cards Is a Growth Strategy for Solo Entrepreneurs appeared first on Addicted 2 Success.

The Hidden Infrastructure Upgrade: How a Reliable Well System Supports Property Value

Filed Under: Addicted2Success, SUCCESS

Property value is often associated with curb appeal, updated kitchens, and extra square footage. Yet one of a home’s most important features may be almost invisible: its water system. For properties that rely on private wells, the pump setup influences everyday comfort, maintenance costs, and buyer confidence. Whether you are purchasing, renovating, or preparing to sell, understanding this infrastructure can help you make informed decisions and avoid expensive surprises.
Why Well Pump Systems Matter
A private well system is more than a utility tucked away in a basement or equipment room. It delivers water for showers, cooking, laundry, cleaning, and irrigation. When it works properly, people rarely think about it. When it fails, however, the disruption quickly becomes part of daily life.
Low pressure, inconsistent flow, and unexpected interruptions can make even a beautifully renovated home feel less functional. Buyers may ask about the pump’s age, the pressure tank’s condition, maintenance history, and the system’s ability to meet household demand.
A neglected system can lead to repair requests or price negotiations. Although good maintenance cannot guarantee a higher sale price, it can reassure buyers that an essential part of the property has received proper attention.
Why Installation Quality Matters
Equipment selection is only one part of a dependable water system. Correct sizing, safe electrical connections, suitable components, and accessible installation all influence performance and future maintenance. A poorly matched pump may struggle to meet demand, while rushed workmanship can leave problems hidden until the system is under pressure.
This is where professional water well pump installation becomes part of long-term property maintenance rather than just another repair expense. A suitable setup accounts for well depth, water availability, household demand, pressure requirements, and site conditions. Quality workmanship can also make future servicing more straightforward.
If you are improving a home before listing it, keep invoices, equipment details, and service records. If you are buying, ask who completed the installation and whether warranties or inspection reports are available. Clear documentation can reduce uncertainty, although it should never replace an independent assessment.
What Buyers Often Overlook
During a viewing, it is easy to focus on flooring, appliances, the roof, and heating or cooling equipment. The well system may remain out of sight until an inspection uncovers a problem. Discovering an issue late in the process can create stress when negotiations and deadlines are already underway.
Before committing to a property, request available records for the pump, pressure tank, well yield, water-quality tests, and previous repairs. Ask whether the system has experienced low pressure, sediment, unusual noises, or repeated breakdowns. If documentation is missing, consider an assessment by a qualified well professional instead of assuming everything is working correctly.
Usage matters, too. A pump that once served a small household may struggle after renovations add bathrooms, a guest suite, or extensive irrigation. The system should be evaluated against current demand, not simply the home’s original layout.
How Performance Affects Comfort and Costs
Poor pump performance often appears through small frustrations. The shower loses pressure when the washing machine starts. Sprinklers weaken while taps are running. Water flow fluctuates, or the pump switches on and off too frequently.
These symptoms may indicate a problem with the pump, pressure tank, pressure switch, plumbing, or available well supply. Frequent cycling can strain equipment and increase electricity use. Inconsistent flow may also affect filtration and water-treatment systems.
Not every pressure issue means the pump needs replacing. A clogged filter, leaking pipe, faulty switch, or pressure-tank problem may be responsible. Professional diagnosis helps identify the cause and avoids spending money on the wrong repair. Addressing a minor issue early may also reduce the risk of a more disruptive failure.
Questions to Ask Before Buying or Renovating
Start with the basics. How old are the pump and pressure tank? When were they last serviced? Have there been outages, pressure complaints, electrical faults, or major repairs? Request recent well-yield information and water-quality results, where available.
Find out whether irrigation shares the same water supply as the household. This can help explain pressure changes during peak use. If you plan to add a bathroom, outdoor kitchen, or larger landscaped area, discuss the expected demand with a qualified professional before construction begins.
Water quantity and water quality are separate concerns. A pump may deliver water reliably without guaranteeing that the water is safe to drink. Private wells should be tested according to local health guidance and potential risks in the area. Keep test results with the property’s maintenance records so future owners can see what has been checked.
Warning Signs That Deserve Attention
Common warning signs include fluctuating pressure, sputtering taps, cloudy or discolored water, unusual pump noises, frequent breaker trips, and equipment that runs continuously or cycles repeatedly. A sudden change in water taste or odor also deserves investigation and appropriate testing.
Some clues appear outside the house. Irrigation zones may perform poorly, or water delivery may decline when several fixtures run at once. These symptoms do not identify the cause on their own, but they are good reasons to investigate rather than ignore the problem.
If you experience a sudden loss of water, electrical issues, or a change in water quality, contact an appropriate professional. Avoid opening electrical equipment or attempting repairs beyond your training. Early assessment gives you more options for scheduling work and managing costs.
For an accessible explanation of pump and pressure-system problems, This Old House’s guide to diagnosing well-water issues explains common components and warning signs. These resources can help you prepare for a service visit, but they are not substitutes for professional diagnosis.
Learn the Basics of Well Maintenance
Understanding the main components helps owners ask better questions, even when professionals handle the repairs. The U.S. Environmental Protection Agency provides practical guidance on protecting private-well water, including testing recommendations and situations that call for additional checks. Read its private well water guidance and follow relevant local recommendations.
Protecting Property Value Over Time
A home is a stronger asset when its essential systems are dependable. For a property served by a private well, that means reliable water delivery, appropriate maintenance, current water-quality information, and records showing that problems have been addressed. These details may not create dramatic listing photos, but they can support buyer confidence and make ownership more predictable.
No single infrastructure upgrade guarantees a higher valuation. Its value depends on the system’s condition, local market expectations, and the property’s needs. Still, preventing avoidable failures and documenting responsible maintenance can reduce uncertainty during a sale and help owners plan expenses more intelligently.
Water infrastructure is easy to overlook because it usually works quietly in the background. Treat it as part of the home’s overall condition, not an afterthought, and you will be better prepared to buy, renovate, maintain, or sell with confidence.
The post The Hidden Infrastructure Upgrade: How a Reliable Well System Supports Property Value appeared first on Addicted 2 Success.

Googling for Reddit answers is about to get harder

Filed Under: SUCCESS, The Street

A JUST IN post from Polymarket stopped my scroll recently: Traffic to top U.S. news websites is collapsing as AI replaces traditional search.

I immediately thought of Reddit Inc. (RDDT), the online forum where a Google search has long been the front door.

Axios data shows visits to top U.S. news sites are down about 30% from their 2024 peak. Reddit has now shown what that shift looks like inside one company.

On Thursday, Oct. 29, 2026, Reddit said it will move to a logged-in-only experience, according to its third-quarter shareholder letter.

Tests begin this quarter in select markets outside the U.S. A Google search that lands on a Reddit thread may eventually end at a sign-in screen.

Also read: Cramer points to rare Reddit buy opportunity amid Google AI threat

Google’s AI answers are closing Reddit’s front door

Co-founder and CEO Steve Huffman told analysts the change is a big one for him personally. He went further with CNBC, calling Reddit the last platform with basically unfettered logged-out access. “I’ve been holding that line,” he said.

Google broke that line. Reddit said search referrals fell meaningfully in the third quarter, then by more than 1 million a week on average in October. If that pace holds, daily users could shrink by a low double-digit percentage this quarter from about 130 million, the company warned.

Huffman blamed AI Overviews and AI Mode from Alphabet Inc.’s (GOOGL) Google, which answer questions on the results page.

“The reality is the AI mode does not drive traffic,” he told Citizens analyst Andrew Boone on the earnings call. He added that “Reddit” still ranks among Google’s most searched words, so demand has not faded.

Google’s own numbers hint at why it keeps users close. Search and other revenue grew 12% in the third quarter, according to Alphabet’s earnings release. A business growing at that pace has little reason to send its audience elsewhere.

Reddit plans to test a logged-in-only experience outside the U.S. after Google search referrals dropped by more than 1 million per week in October.SOPA Images / Getty Images

The visitors Reddit is losing pay the least

The traffic Reddit is losing is worth less than it looks. More than half of its daily U.S. users browsed logged out last quarter, the shareholder letter shows. Yet logged-in and app users generate more than 80% of Reddit’s monetization, Huffman wrote.

In other words, Google is mostly taking away the crowd that pays less than a fifth of the bills. Logged-in users also hand Reddit more signals for ad targeting, the letter adds.

Data is the other prize. Huffman told analysts the vast majority of scraping happens through logged-out access. With Google licensing talks still underway, CNBC reported, closing that side door strengthens Reddit’s hand.

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Huffman said Reddit still wants visitors to get a taste of the site and shared links to keep working.

Only about 13% of eligible mobile web users see the prompt to download the app, the letter notes, leaving room to grow.

The most revealing line on the call came near the end. Huffman told Wedbush analyst Ygal Arounian that he expects total daily users and logged-in users to roughly converge over time.

Logged-in users totaled 53.5 million last quarter, against 130.3 million total, according to the letter.

That gap is the whole bet. If it closes through sign-ups, Reddit wins a smaller but far more valuable audience. If it closes through lost visitors, the headline user count could shrink for quarters, so investors should watch logged-in growth instead.

Wall Street cut targets despite a strong quarter

Strong results did not protect the stock. Reddit’s third-quarter revenue rose 53% to $895 million, according to the letter. Yet fourth-quarter guidance of $1 billion to $1.03 billion missed expectations, and shares dropped more than 15% after the release, CNBC reported.

That slide reaches index investors too, since Reddit joined the S&P 500 this quarter, the letter notes. Before the report, the stock was already near the bottom of its 52-week range of $119.27 to $263.50, according to StockAnalysis.

StockAnalysis put Reddit’s forward price-to-earnings ratio near 22.5 before the report. A 15% drop with unchanged estimates would pull that below 20. That looks cheap for a company still guiding to about 40% growth, unless users fall further than Reddit warned.

StockAnalysis shows a consensus Buy from 34 analysts, with an average target of $212.95. That predates Friday’s revisions, which included these, according to Investing.com:

Target halved to $150 from $300 at Needham, which kept a Buy rating.

Target cut to $135 from $190 at BofA Securities, which kept a Neutral rating.

Downgrade to Sector Weight from Overweight at KeyBanc, citing weaker search traffic.

Downgrade to Market Perform at Citizens, which cited slower user growth and fewer Google referrals.

Huffman left no doubt about direction. He told Jefferies analyst John Colantuoni the test will shape how Reddit makes the switch, not whether it happens.

The web’s oldest bargain is breaking down

For two decades, the web ran on a simple trade: Sites let Google read everything, and Google sent readers back. Reddit, the last big open holdout, is now ending it, according to its CEO’s account.

I have been seeing more sites complain about that broken trade lately, from big news outlets to small blogs that once lived on search clicks.

Axios reported that the slide is already pushing digital publishers into layoffs and consolidation. Reddit is the latest, and loudest, to stop waiting for Google to fix it.

Reddit’s tests outside the U.S. will show whether a sign-in screen builds loyalty or turns curious visitors away.

If the bet pays off, sites sitting on valuable archives will have a playbook to copy. Either way, the open web many of us grew up searching is getting smaller, one login prompt at a time.

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Home Equity Sharing: Pros and Cons

Filed Under: Money.com, SUCCESS

Key Takeaways

An equity sharing agreement is a contract in which the homeowner agrees to sell a portion of their home’s future price appreciation in exchange for a lump sum from an investor. They do not require monthly payments.
The homeowner can buy back the investment by repaying the original investment amount plus a percentage of the home’s appreciated value. Most agreements require homeowners to settle up after a certain amount of time has passed or when they sell the house.
Investment amounts can range between $15,000 to $600,000 or more, and the funds can be used for any purpose.
You may have to repay much more money than you initially received if your home value increases significantly. The exact share you’ll owe depends on your agreement and the investor you choose.

Equity is a big benefit for homeowners. Build up enough of it, and you can borrow against your equity and turn it into cash, using it for things like home repairs, renovations, medical bills, college costs, or even paying off high-interest debts, like credit cards.
But most home equity products — including the ever-popular home equity loans and home equity lines of credit (HELOCs) — involve monthly payments and interest, which can eat into your cash flow and make it hard to pay off other debts simultaneously.
For homeowners who want to tap their equity without taking on more monthly costs, home equity sharing agreements are an option. These arrangements allow homeowners to access their home equity without technically incurring debt. Instead, they essentially sell a percentage of their home’s future value in exchange for an upfront lump-sum payment.
There are no monthly payments or interest charged, and the amount owed is repaid at the end of a set time period or when the homeowner eventually sells the house. There are drawbacks, though. Learn about these and other important details about home equity sharing below.

What is a shared equity agreement?
Equity-sharing agreements are similar to investing in the stock market. The investor buys “stock” in your home and expects its future value to increase. When the agreement’s term is up or the home is sold, the investor recovers their original investment plus a percentage of any gains in the value of the home. On the other hand, if the property loses value, the investor loses as well, just as you would if selling a stock that’s lost value.
Kenon Chen, executive vice president of strategy and growth at property analytics firm Clear Capital, says home equity agreements have grown in popularity in recent years because they let homeowners access their equity without taking out a loan. This can make accessing equity easier and help keep cash flow free. It can also help you avoid the high interest rates the home equity loans and HELOCs can sometimes come with.
“They can be a really good option for folks that maybe are not ready to be approved for a traditional [home equity] product,” Chen says.
However, these agreements are complex contracts and aren’t governed by the same regulations that apply to traditional mortgage and home equity lenders. While they can be a good option for some homeowners, they also carry several risks you need to understand. Before signing any agreement, make sure you fully understand the terms, conditions and your potential long-term costs.
The pros of home equity sharing
No monthly payments
The most enticing upside to signing a home equity sharing agreement is that you won’t need to worry about the product’s debt cutting into your monthly budget anytime soon. Unlike traditional home equity loans or lines of credit, you won’t need to pay back the money owed in monthly installments, but rather as a lump sum at the end of the agreement. This keeps your cash flow free and avoids financial stress—at least for the time being. You also won’t pay interest.
No upfront payments required
Equity sharing agreements typically carry fees similar to those of home equity loans and lines of credit, including closing costs and origination fees. However, many home equity sharing companies let you deduct these costs from the funds they pay out. You’ll receive less if you choose this route, but you won’t need a large upfront cash payment to complete the transaction.
Investment amounts can be large, and you can use the money for any purpose
How much money you can obtain from an equity sharing company will depend on your home’s value and how much future equity you’re willing to sell. Companies have varying minimum and maximum investment amounts, ranging from $15,000 to $600,000. Additionally, there are no limits on how you can use the money.
You don’t need great credit
With traditional equity products like home equity loans, your credit score and other financial factors play a big role. With home-equity sharing agreements, the investor primarily looks at the value of the asset (your home) — not your financial attributes. In fact, with some companies, you can have a credit score as low as 500 and still qualify. Others have no income requirements, either.
Payoff times can be lengthy
Some home equity sharing companies offer agreements as long as 30 years, so you have time to use the funds as needed, and repayment isn’t due for many years down the road.
The cons of home equity sharing
You could owe much more than you received
Your home’s adjusted value, not the full appraisal value, determines the amount you’ll receive upfront and will play a part in how much you’ll have to repay. Because many investment companies lower your home’s value with a risk adjustment, you may end up owing money on equity gains that never happened.
The appreciation multiplier will also increase the amount you’ll have to repay the investor when the agreement ends, resulting in a much higher payment than you may initially expect.
There may be restrictions on when you can sell your home, make improvements or buy back the agreement
Because you are entering a legal agreement with a company over the future value of your home, your agreement may include limitations on what alterations you can make to the property that could potentially devalue it. Some companies can also limit your ability to opt out of the agreement before the term ends or charge you penalties if you sell your home prematurely.
You may need to sell your home to repay the investment
At the end of the agreed-upon contract period, you will need to make a lump sum payment of the initial investment amount plus a percentage of any equity gained. You may be able to pay this sum before the end of the agreement term if you decide to buy out the contract or sell your home. For most homeowners, however, reaching the end of the contract will mean selling their home, refinancing or finding another source of funding to repay the investment.
Limited availability
Home equity sharing agreements aren’t widely available. The few companies that do offer them typically limit agreements to a specific number of states — anywhere from 15 to about 30, depending on the company. You’ll need to shop around to find what options, if any, are available in your region.
How does a home equity sharing agreement work?
In a home equity sharing agreement, the company you are in business with will start by getting an appraisal to determine your home’s value and how much equity you currently own. Once the assessment is in, the company will apply a risk adjustment to that value — essentially a downward adjustment to offset the risk of future equity losses. Unison, for example, applies a 5% risk adjustment as of September 2026. This means you start the agreement already owing part of the “appreciated” value — the gap between the risk-adjusted and actual market value.
Home equity share companies will also apply an appreciation multiplier — a pricing adjustment that increases the investor’s share of your home’s increased value. For example, Hometap applies a 1.65x multiplier on investments settled within a five-year period, and a 1.8x multiplier on investments settled after five years.
If the company buys 10% of your home’s equity, you will be responsible for repaying the initial investment amount plus 16.5% or 18% of your home’s appreciation.
Each home equity sharing company will apply its own multiplier. As of September, 2026, Unison states its multiplier is typically 4x the investment percentage. So, if you sign an agreement and they buy 10% of your equity with a 4x multiplier, they will receive the original investment amount plus 40% of the gained appreciation when the agreement is settled.
Are there tax implications with a home equity sharing agreement?
The money you receive from an equity sharing agreement is generally not treated as taxable income. It’s considered an advance against your home’s future value, not earned income. The IRS, however, has not issued any guidance specific to equity sharing agreements, so this treatment reflects an industry practice rather than settled law.
These agreements also carry none of the tax advantages of a home equity loan or line of credit. With those products, you can deduct the interest under the following conditions: if you itemize, if the home secures the loan, if your total home acquisition is under $750,000 and if the money was used to purchase, build or substantially improve the home. These rules were made permanent under the One Big Beautiful Act. Because a home equity agreement isn’t a loan and charges no interest, there’s no interest to deduct.
You may owe capital gains tax when you sell. The standard exclusions — $250,000 for single filers, $500,000 for married couples filing jointly — apply the same way whether or not you have an agreement, and the amount you pay the investor does not reduce your gain. For example:

Adjusted tax basis (purchase price plus capital improvements): $350,000
Sale price: $700,000
Gain: $350,000
Paid to equity sharing investor: $115,000

A married couple filing jointly excludes the full $350,000 gain and owes nothing. A single filer excludes $250,000, leaving a $100,000 taxable gain and roughly $15,000 in tax at the 15% long-term capital gains rate. Your actual rate, however, can be 0%, 15% or 20%, depending on your income. High earners may owe an additional 3.8% net investment income tax. In both cases, the $115,000 paid to the investor does nothing for your tax bill: it isn’t a mortgage payoff, it isn’t a selling cost and it doesn’t raise your basis.
This is a simplified example. Your actual gain would also be reduced by selling costs such as agent commissions. The exclusion applies only to a primary residence — not a second home or investment property — and you must have owned and lived in the home for at least two of the previous five years before the sale. Consult a tax professional before signing an agreement or selling to see how an equity sharing agreement could affect your tax obligations.
What happens if you can’t repay?
A home equity sharing agreement may not be a loan, but it shares some common features. The investment company can place a lien on the property, just as a mortgage lender would when issuing a loan. If you fail to meet the agreement’s conditions and terms, or are unable to make the final balloon payment to buy back your equity, you may be forced to sell the home or risk foreclosure.
Equity sharing agreements are considered options contracts and therefore fall outside the legal disclosure protections offered by the Truth in Lending Act and the Consumer Financial Protection Bureau, so you must ensure you fully understand all the costs associated with a home equity investment.
These agreements are also attached to the property and are assumable. If you die, your heirs can assume the agreement and repay it when the term ends, or exit the agreement by paying the investment company. In case of a divorce, whichever partner keeps the home either assumes the agreement or buys the investment back.

Home equity sharing FAQs
Is equity sharing a good idea?
Home equity sharing agreements can be a good idea if you have a lot of home equity and need to borrow cash without taking on another monthly payment. Just be aware that if your home increases in value by the time the money comes due, you could end up paying much more than you borrowed.
What is the downside to a home equity agreement?
The biggest downside to a home equity sharing agreement is that the home equity investor could end up taking a big share of your home’s appreciation if it grows in value by the time your agreement ends. They also may come with restrictions on how you can improve your home or when you can sell it.
How does a home equity share work?
Home equity sharing is when you sell a portion of your home’s equity to an investor in exchange for a lump sum payment plus a portion of your home’s future value. They’re offered through a variety of investment companies, including Unlock, Hometap, Unison and more.
Who is the best lender for a home equity agreement?
The best home equity sharing company depends largely on where you’re located, as most companies only operate in a handful of states. Your credit score, how much equity you have, how much you’re looking to borrow, and other factors should influence which home equity investor you choose, too.

Summary of Money’s home equity sharing: pros and cons
Home equity sharing is an option for homeowners who may not want to take on new debt, can’t meet the standards of a traditional home equity loan or are looking to access their equity without making monthly payments. However, there are risks: you will need to repay the investment amount plus a percentage of the value gained at the end of the contract period. Weigh your options and speak with a financial advisor before deciding if a home equity sharing agreement is right for you.