We Buy Ugly Houses and HomeVestors Review 2024
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In this review we evaluated We Buy Ugly Houses / HomeVestors’ features, plans, pricing, and other important aspects to help our readers make a more educated purchase decision.
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What Is We Buy Ugly Houses / HomeVestors?
We Buy Ugly Houses is a company that helps homeowners sell their properties fast and for cash.
Its sister brand, HomeVestors, is a franchise for real estate investors. It helps them set up and run a real estate investment business.
The We Buy Ugly Houses website is for sellers, while the HomeVestors website is where investors enroll to become franchisees.
The company’s franchise business model means that investors use the company’s branding and go through training to start and operate their businesses.
What Is We Buy Ugly Houses / HomeVestors Used For?
We Buy Ugly Houses is an intermediary for motivated sellers and cash buyers. Here are the services offered by We Buy Ugly Houses and HomeVestors:
- Quick property sales — We Buy Ugly Houses purchases homes as-is; you don’t need to repair or clean the property to sell it. Furthermore, closing takes as little as three weeks, and some users have even reported closing in just 10 days.
- Cash offers — We Buy Ugly Houses only deals in cash offers for quick sales and closing. Cash offers are great for distressed sellers looking to sell fast.
- Property valuation — Once you contact the company, a HomeVestor franchisee in your local area will contact you to schedule a viewing of the property. The professional will visit it and make an offer based on the condition and location of the property.
- Professional advice and support — A We Buy Ugly Houses professional guides you throughout the sale process, from when you contact the company to closing.
- Education and training — Investors who want to become HomeVestor franchisees must receive the company’s training before and during business operations. That said, franchisees operate without oversight and guidance from the parent company.
- Leads — HomeVestors has extensive motivated seller lead generation channels. To help its franchisees find off-market properties for sale, the company provides them with motivated seller leads sourced from marketing campaigns by We Buy Ugly Houses.
- Marketing — HomeVestors offers franchisees a range of marketing options, including digital marketing, TV ads, and billboards.
We Buy Ugly Houses / HomeVestors Users Breakdown by Specialty
Is We Buy Ugly Houses / HomeVestors Legit?
Yes. We Buy Ugly Houses is a legitimate franchise company that has been around since the late 1980s with physical headquarters in Dallas, Texas.
Since then, the company has achieved a nationwide reach with more than 1,100 franchise offices across 48 states.
As a real estate brand, We Buy Ugly Houses has a robust social media presence across popular platforms.
The company has a huge following, particularly on Facebook, where the brand regularly provides updates and responds to customer queries.
The We Buy Ugly Houses program is also safe for its users. The real estate company employs industry-standard administrative and technical measures to safeguard your data and discloses where your data might be shared.
We Buy Ugly Houses and HomeVestors have also been featured a lot online. Both brands are accredited by BBB.
Online reviews, however, are mostly mixed, with many seller complaints that the company continues to send marketing emails even after opting out of a deal.
Overall, We Buy Ugly Houses is not a scam, but the company has been accused of being a ripoff due to below market value offers it makes to sellers.
We Buy Ugly Houses / HomeVestors Customer Reviews
We Buy Ugly Houses / HomeVestors Pricing
Costs for Homeowners
Homeowners who choose to sell their homes through We Buy Ugly Houses don’t incur any costs on the platform.
Contacting the company, having a professional assess your house, and getting a cash offer for your property is free, and there is also no obligation to accept an offer.
HomeVestors Franchise Cost
For real estate investors looking to join the real estate investing franchise, there are certain fees required.
The We Buy Ugly Houses franchise costs between $89,000 and $461,000, depending on the type of franchise you enroll in and several other factors.
There are two franchising options: Full Franchise and Associate Franchise.
Full Franchise Fees
The HomeVestors full franchise fees start from $135,000. Investors are first required to pay an initial non-refundable payment of $85,000 to join the program.
This initial fee covers start-up costs such as:
- First month’s rent
- Leasehold improvements
- Security deposit
- Business License
- Furniture, fixtures, equipment, and signage
That said, if the franchise company is large, you may have to pay additional fees for the start-up expenses.
In addition to the initial fee, there are additional costs for other start-up services:
- Advertising: $30,000 – $140,000
- Insurance: $2,000 – $8,000
- Training expenses: $1,800 – $6,000
- Purchase and repair of properties: $13,000 – $129,000
- iPad and other computer equipment: $2,000 – $10,000
Associate Franchise Fees
To become an associate franchise, an initial non-refundable fee of $39,000 is required to cover the most essential start-up expenses (similar to those in the Full Franchise package).
You will also be required to pay for the additional start-up services, just as in the Full Franchise package.
Note: HomeVestors franchisees (both full and associate) pay a royalty fee of 0.8% to 3% of their revenue.
We Buy Ugly Houses / HomeVestors Features
For home sellers, We Buy Ugly Houses doesn’t have any distinct features. Instead, the platform has a simple and straightforward step-by-step process for sellers to sell their properties to local investor home buyers.
- Contact the company by filling out the online form on the website with your contact and property information.
- A franchisee in your area will contact you to schedule a consultation and visit your property.
- The We Buy Ugly Houses representative will then visit your property and evaluate its condition.
- The franchisee will make you a cash offer either on the spot or after 24 hours. You can accept or reject the offer. If you accept the offer, you will receive a sale agreement from the rep. Once you’ve signed and accepted an offer, you have three days to change your mind.
- After accepting, you can receive your payment, move out, and close.
We Buy Ugly Houses Franchise Model
Unlike other cash offer platforms, We Buy Ugly Houses employs a franchise business model in its operations.
This means that investors/buyers can join the HomeVestors program as franchisees and use the company’s name, branding, and business model to open independently owned and operated businesses.
The franchise business model has enabled We Buy Ugly Houses to reach motivated home sellers across 48 states, with more than 1,100 offices nationwide.
HomeVestor Features
We Buy Ugly Houses investors (franchisees) are required to join the service through the HomeVestors website. The following are the services you get as a franchisee:
- HomeVestor training, support, and mentorship
- Access to UGVille Software (proprietary real estate investors CRM software. Franchisees can use this real estate investor tool for pipeline management, property valuation, marketing automation, intelligent business analysis, and access to a nationwide vendor network)
- Marketing and real estate investor lead sources
- Access to a network of hard money lenders and financing options
We Buy Ugly Houses / HomeVestors Pros and Cons
Pros
- We Buy Ugly Houses is a legitimate and nationally recognized brand.
- We Buy Ugly Houses purchases properties as-is, saving sellers time on marketing and money on repairs.
- There are no commission fees or closing costs.
- For investors, the company offers extensive training and guidance for starting a business under a famous and reputable brand.
Cons
- There have been complaints that some franchisees pressure sellers into accepting offers.
- The company continues to send marketing emails even after opting out of the service.
- Sellers receive lowball offers that are 50% (or less) of a home’s value.
- For investors, franchise fees are high.
We Buy Ugly Houses / HomeVestors Integrations
We Buy Ugly Houses / HomeVestors Alternatives
We Buy Ugly Houses / HomeVestors Achievements
Awards & Recognition
Best Real Estate Investing Franchise (Awarded by Real Estate Bees)
Press & Media
We Buy Ugly Houses / HomeVestors FAQs
How much does We Buy Ugly Houses pay?
The amount HomeVestors pay for houses varies based on the condition of the homes, location, and current market situation.
That said, the company encourages its franchisees to follow the 70% rule, which states that buyers shouldn’t pay more than 70% of a house’s after-repair value (excluding repair costs).
As a result, We Buy Ugly Houses offers are usually about 45%-65% of your home’s actual as-is value.
Does We Buy Ugly Houses pay market value?
No. We Buy Ugly Houses buyers make low offers that are 15% to 50% lower than what you’d get by using a realtor to sell your home.
However, a traditional sale would likely take much longer to close.
Who owns HomeVestors?
HomeVestors is a real estate investing franchisor company owned by Bayview Asset Management, an international investment management firm, since January 2022.
HomeVestors is currently headed by CEO Larry Goodman.
How many clients does the We Buy Ugly Houses program serve?
Over 140,000 homes have been sold through We Buy Ugly Houses. The HomeVestors company also has more than 1,100 franchisees across 48 states, indicating the brand’s nationwide reach.
Who founded We Buy Ugly Houses?
We Buy Ugly Houses was started in the late 1980s by Ken D’Angelo, a Dallas real estate agent, entrepreneur, and business executive.
He started the company as a network of buyers focused on purchasing unwanted, hard-to-sell, and worn-out homes and helping motivated sellers find real estate investors.
Later, in 1996, Ken founded HomeVestors to help investors create their own businesses under the franchise.
What is We Buy Ugly Houses’ customer service number?
If you’re looking to sell your house, you can contact the company by calling (866) 200-6475 or by filling out the form on the Contact Us page.
The customer service line for investors looking to become independent HomeVestors franchisees is (866) 249-6932.
What is the We Buy Ugly Houses cancellation and refund policy?
We Buy Ugly Houses is free for property sellers. Homeowners also have no obligation to accept offers, and as a result, a cancellation and refund policy is not applicable.
For HomeVestor investors, there are no refunds if you choose to exit the partnership. Instead, the franchise is closed, and assets and inventory are sold off.
We Buy Ugly Houses / HomeVestors Tutorials & Training
Is We Buy Ugly Houses / HomeVestors Worth It?
We Buy Ugly Houses is certainly worth it if you belong to one of the types of motivated sellers who need to sell your house fast. It’s also a suitable option for sellers who can’t afford renovation.
Still, you should expect to receive low offers that are up to 50% lower than what you would receive through having a local real estate agent list and sell it for you. There’s also very little room for offer negotiations.
As a franchise, it may be worth it for investors who have a significant budget to start a house flipping business or get into real estate wholesaling. Otherwise, the franchise fees are pretty high.
We Buy Ugly Houses / HomeVestors Contacts
- Website: Official website
- Phone: (866) 200-6475
- Email: [email protected]
- Address: 6500 Greenville Avenue, Suite 400, Dallas, TX 75206
- Socials: Facebook, Instagram, YouTube, LinkedIn
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About the Author:
With over 20+ years of experience in real estate investment and renovation, Brian Robbins brings extensive knowledge and innovative solutions to the HouseCashin team. Over the years Brian has been involved in over 300 transactions of income producing properties across the US. Along with his passion for real estate, Brian brings with him a deep understanding of real estate risks and financing.