Frequently Asked Questions
Frequently Asked Questions
Funded Fix-n-List
Fix-n-List
Our Funded Fix-n-List solution provides an opportunity for you to have the cost of repairs and basic upgrades to your home paid for by us.
Will I sell my home for more because of the investments funded by Easy Offers Utah?
Most of our clients profit $20,000-$40,000 through our Funded Fix-n-List program, vs. what they would make selling the home in ‘as is’ condition.
What are the most common upgrades you make to drive the highest home value?
We focus on the updates that bring the highest ROI (return on investment), which usually include: new carpet, new paint, new backsplash in kitchen, new kitchen countertops, and new bathroom vanities.
How are the updates paid for?
Easy Offers Utah will pay for the cost of the updates upfront, and this cost is then reimbursed by the Seller at closing from the added equity created by doing the updates. The value of the updates often exceeds the cost.
What if the updates do not provide enough value, and the home does not sell high enough?
Easy Offers Utah guarantees a price higher than a predetermined ‘as is’ value. If the home does not sell for higher than the predetermined ‘as is’ value, Easy Offers Utah will buy the home. Terms and conditions apply.
Extended Equity Buy-Out
Extended Equity Buy-Out
Our Extended Equity Buy-Out solution provides an opportunity to secure a higher purchase price for your property—structure with an up-front down payment, monthly payments made over time, and a balloon payment in the future.
Are there risks associated with seller-finance? Is it legal?
There are some risks associated with seller finance. One of the biggest risks being the underlying loan is not assumable, therefore the lender may call the loan due-and-payable if they find out a buyer assumed a non-assumable loan. Also, the buyer may default on the loan, leaving the seller with the burden of foreclosing to repossess the property. It’s important for both the buyer and the seller to thoroughly understand the terms and conditions of a seller-finance agreement and seek professional legal and financial advice before entering into such an arrangement.
Is this something new? I’ve never heard of seller finance?
No, seller finance is not something new. In fact, it has been a common practice in real estate for many years. Seller financing is popular when interest rates are high, and it becomes more difficult for buyers to obtain traditional mortgage loans or homes become unaffordable. Seller financing can be an attractive option for buyers who are unable to obtain financing through traditional loans, and it can also be a way for homeowners to sell their property more quickly or earn interest income on the loan. It is considered a wealth-building vehicle for sellers.
Why would I consider sell-finance?
There are many reasons to consider seller finance. I will name the top five reasons:
1: To attract more buyers: By offering seller financing, a seller can attract buyers who may not be able to obtain financing through traditional channels like banks or mortgage lenders. This can expand the pool of potential buyers and increase the likelihood of selling the property.
2: To sell a property faster: Offering seller financing can speed up the selling process because it eliminates the need for a buyer to secure a traditional mortgage, which can take several weeks or months.
3: To earn interest income: A seller who finances the sale of their property can earn interest on the loan, which can be a source of passive income.
4: To defer taxes: By spreading out the payments over time, a seller can potentially reduce their tax liability on the sale of their property.
5: To create a more attractive deal: In a competitive market, offering seller financing can make a property more attractive to buyers, and can sometimes even help a seller get a higher price for their property.
How does seller-finance work?
Seller financing is when the seller of a property or asset provides financing to the buyer instead of, or in addition to, a traditional mortgage or bank loan. The seller acts as the lender and the buyer makes payments to the seller over a period of time, typically with interest.
How is the interest rate determined in a seller financing agreement?
The interest rate in a seller-finance agreement can be negotiated between the buyer and the seller. The interest rate may be higher than the current market rate because seller financing is typically considered a higher risk option. However, may homeowners locked into low interest rates and can offer a rate higher than their current mortgage, but lower than market rates. In most instances, the seller can make a profit each month on the interest.
Quick-n-Easy Cash Offer
Quick-n-Easy Cash Offer
Our Quick-n-Easy Cash Offer solution allows you to to sell your home quickly without paying Realor commmissions, closing costs, and investing in costly repairs.
What does 'cash offer' mean?
A cash offer on a home is an offer to purchase the property using cash, rather than financing from a bank or other lending institution. This means that the buyer has the funds available to purchase the property outright, without the need for a mortgage or other financing.
Will I make less on my home than if I listed with a Realtor?
Typically, yes. A buyer making a cash offer will usually want something in return for the convenience a cash offer provides—that exchange is typically in the form of a lower price for the home.
My home is a mess. Can I still get a cash offer?
A cash offer makes more sense when a home is in poor or unfavorable condition. When a property is in poor condition Cash buyers are often more willing to purchase properties because they are not relying on a bank appraisal or mortgage approval; lenders often want the home in good condition before they will lend on them. So, a cash offer can be an advantage for sellers who have a property that needs significant repairs or renovations.
What are the advantages of a cash offer?
The advantages of a cash offer include a faster closing process, no financing contingency, no appraisal contingency, and the ability to negotiate a lower purchase price because the seller can avoid the costs associated with a traditional sale. The buyer is usually purchasing the home as is.’
Should I accept a cash offer on my home?
Whether or not to accept a cash offer on your home depends on your individual circumstances and priorities. If you’re looking for a quick sale or want to avoid the uncertainty of a traditional sale, a cash offer may be a good option. However, if you’re looking for the highest possible price for your home, a traditional sale may be a better option.
Rent-n-Roll Your Equity
Our Rent-n-Roll Your Equity solution allows you to leverage the equity in your current residence to purchase a new home—making your current residence becomes a cash-flowing rental.
What is the advantage of selling later vs. now?
Deciding whether to keep a property as a rental can depend on a variety of factors, including your financial goals, the condition of the property, and your ability to manage a rental. Some of the biggest benefits are generating monthly cash flow from the rent—this will build wealth over time as the home appreciates, while the mortgage is being paid down by someone else.
Is it a lot of work to manage a rental?
Managing a rental property can be a significant amount of work, but it depends on a variety of factors, including the size and condition of the property, the number of tenants, and the level of involvement you want to have in the management process. It’s possible to outsource some or all of the management tasks to property management company or real estate agents. This can help to reduce the workload and make the process more manageable, although it will also involve additional costs. We can help you determine what route is best for you.
How do I determine how much I can charge for rent?
This can depend on factors such as the location, condition, and size of the property, as well as the current rental market. Easy Offers Utah will help you determine what is the market rent for your property, and if it makes financial sense before considering keeping your home as a rental.
What are the tax implications of renting out my property?
Renting out a property can have various tax implications, and it’s important for homeowners to understand their tax obligations as a landlord. Here are some common tax considerations for rental properties:
1: Rental Income: Rental income is considered taxable income and must be reported on your tax return. This includes rent received from tenants as well as any fees charged for services such as parking or laundry facilities.
2: Deductions: As a landlord, you may be eligible for certain deductions related to your rental property, such as mortgage interest, property taxes, insurance premiums, repairs and maintenance, and depreciation. These deductions can help lower your taxable rental income and reduce your tax liability.
3: Depreciation: Depreciation is a tax deduction that allows you to deduct the cost of your rental property over a period of time. This can include the cost of the property itself as well as any improvements made to the property.
4: Capital Gains: When you sell a rental property, you may be subject to capital gains tax on any profit you make from the sale. However, if theh property was owner occupant for more than a year, you may be eligible for long-term capital gains rates. These rates are typically much lower than short-term rates.
It’s important for homeowners to keep accurate records of all rental income and expenses to ensure that they are properly reporting their rental income on their tax returns. Homeowners may also want to consult with a tax professional to ensure that they are taking advantage of all available tax deductions and credits. Easy Offers Utah can refer some great tax consultants.
