HomeVestors, the company behind WeBuyUglyHouses, is the operative side focused on selling homes they have acquired. Through this company, individuals can start up their own franchise and take advantage of investment opportunities within the real estate market.
HomeVestors franchisees can be described as individuals who flip homes; a majority of these homes are pre-owned distressed homes located in established neighborhoods. Most of these investors will fix up the homes they purchase and then sell them for a profit, others may buy homes to rent or buy a home which they lease to its original seller.
There are over 300 franchise locations across 37 states. The base cost of a franchise is $46,000; in addition there are monthly fees, advertising fees as well as a fee when a house sells. It is estimated that initial commitment of at least $200,000 should be expected by those interested in starting up a franchise with HomeVestors.
The affordability of houses sold through HomeVestors has made them especially attractive to first time home buyers. Since they are partnered with financial institutions they can provide mortgage financing with little to no money down. This has also afforded those, who struggle with less than perfect credit, an opportunity to buy a home.
Homes sold by the company may be move-in ready or may only be partially fixed up. Franchisees are required to disclose the home repairs made and issues with the home, to potential homebuyers. Since these homes are thoroughly examined it reduces the chances of a homebuyer encountering unexpected repairs.
While HomeVestors Franchises continues to increase, so have the number of complaints. Many people found that selling their home to the company appeared to be easy and seamless. They signed the contract and were made to believe the transaction was finalized. The amount of time it took to receive a check prompted these sellers to question the legitimately of the sale.
These individuals discovered their home was already listed on the market by the HomeVestor buyer; to their dismay, the price in the listing was much higher than what they were offered and agreed to in the contract. Basically, there was no money to pay for the home until it was sold and turned a profit. There were even instances of the HomeVestor buyer backing out of the deal because they couldn’t sell it off.
Online reviews also pointed out the high cost of starting a HomeVestors Franchise. The base cost and the ongoing fees for its franchise owners adds up to a considerable amount of money. These individuals can take courses and seminars, offered locally, for a lot less money. Essentially, these franchisees are simply paying to use the brand, WeBuyUglyHouses.
1 ‘HomeVestors’ Review
Gave It a Try....BUT....
I have a home in a desirable neighborhood. My home has always been well taken care of.... but when my daughter and 3 grandkids had to move it, it became quickly apparent that we needed more room. I reached out to HomeVestors because they said that they looked at market value and then would deduct 10% for normal fees (title, plots, realtor buy/sell fees etc)., plus a small amount for "fixing up". Ok Good... So houses in my neighborhood are going for a consistent rate per square foot... The estimator was very polite and remarked on how little would need to be dealt with to make the house saleable... however, when they returned with an offer...it was 10% lower than market to start and then then dropped it another 20% for the basic costs... Wish I'd have known they were that below market to begin with and saved a couple hours of my life doing something else!