HomeVestors review: What it is, how it works
If you need to sell your home quickly, you may have come across HomeVestors, also known as the “We Buy Ugly Houses” company. The company typically buys homes as-is, for cash. Servicing nearly every state in the country, they’re one of the biggest players in the cash-homebuying field.
Wondering if selling to HomeVestors is right for you? Here’s a rundown of how the company works.
What is HomeVestors?
HomeVestors works with homeowners to buy their property quickly, for cash, without needing to make any repairs. Saving homeowners the trouble of having to spruce things up, or even clean, is why they have the well-known slogan “We Buy Ugly Houses.” (You’ll sometimes hear that phrase used as if it’s the company’s name — HomeVestors and We Buy Ugly Houses are one and the same company.)
The company has franchise locations in 47 states throughout the U.S., plus Washington, D.C. They serve customers in:
|
|
Cash homebuying firms like HomeVestors are usually fix-and-flip operations, meaning they buy homes in as-is condition, renovate them and resell them for a profit (or, sometimes, turn them into rental properties). While they operate incredibly quickly and save the seller plenty of hassle, you’re unlikely be get an offer as high as you would if you offered it on the open market in a traditional sale.
Is HomeVestors a legitimate company?
Yes, HomeVestors is a legit real estate company that was founded in 1996 by Ken D’Angelo. It’s based in Dallas and has more than 1,100 franchised locations in 47 states throughout the U.S. The company has purchased more than 140,000 properties over the years and is consistently ranked in Entrepreneur Magazine’s “Franchise 500.”
How does HomeVestors work?
The company purchases homes as is — no need to repair, rearrange or clean anything. They make any repairs needed themselves, as well as any other work needed so that they can resell the property for a profit.
If you are curious about selling your home to HomeVestors, you can reach out to a local office or fill out a form on their website. From there, the process is fairly simple:
- Consultation: The company will send a representative to your property to take an in-person look and assess your property.
- Cash offer: The company will make you a quick cash offer, sometimes as fast as on-the-spot. You’re not under any obligation to accept.
- Accept and close: If you do choose to accept the offer, you will be able to close the deal in as little as three weeks. You won’t pay any closing costs or real estate commissions. The company provides a three-day grace period after accepting the offer to change your mind.
Selling to a cash homebuyer like HomeVestors can be a good option for homeowners who need to move quickly — if you need to relocate ASAP for work, for example — as they can close much faster than a traditional agent-assisted sale. It can also be helpful for people who inherited a property they don’t want, who feel overwhelmed by the amount of repairs it would take to get the property up to speed, or who just need cash fast.
However, keep in mind that you’d almost certainly get a higher offer for your property if you listed it for sale on the open market. They have to make a profit on the transaction, after all. In addition, while the company will usually buy homes no matter how poor the condition, the worse shape your home is in the lower your offer is likely to be.
Selling to HomeVestors
The tradeoff for the speed and simplicity of selling to HomeVestors is, of course, money. The company doesn’t list specific sums details on their website, but they do promise to give a fair offer “based on the market and condition of the house.” It’ll probably be on the low side, and they are not typically open to negotiations. But if your main priority is speed, fast cash or just getting the property off your hands with a minimum of hassle, price might not be a major issue.
HomeVestors buys many types of properties, not just single-family homes, so even if you’re selling a condo, townhouse or apartment, you may still be able to get an offer.
When doing your research on the local HomeVestors outfit in your area, keep in mind that this is a large network of independently owned and operated franchises. One franchise can have great reviews online while another might not, so be sure you’re looking at information for the specific branch you’ll be dealing with.
HomeVestors alternatives
Not sold on selling your home to HomeVestors? You have other options, including these alternatives:
- Other homebuying companies: HomeVestors isn’t the only company of its type. It has many competitors with similar business models, including the national outfit known as We Buy Houses and small local companies in just about every market. You might even reach out to multiple companies to see who will give you the best offer (though don’t be slow in considering — these cash offers typically expire fairly quickly).
- iBuyers: Online iBuyers, like Opendoor or Offerpad, use algorithms to determine the value of your home and generate an offer. They also pay cash and close quickly, though some may charge high service fees.
- Work with an agent: The traditional home-selling route of working with a local real estate agent will take longer, but it is the best option to get you the highest price on your home.
Next steps
You likely won’t get full fair market value for your home when you sell to HomeVestors. But if speed or convenience is more important to you, selling this way may well be worth it to you — if that’s the case, your next step is to reach out to the company, either online or by phone.
If you’d rather hit the open market and try to get as much money as you can for your property, it’s important to find a trusted real estate agent. You’ll want someone on your team who has experience in your area and knows the current market.
FAQs
-
You can try to, but it’s not likely to succeed. Franchise reps take many factors into consideration before presenting you with their cash offer — you can take the offer or leave it, but you’re unlikely to change it.
-
That depends on your circumstances and needs. If you are looking to get the best price possible for your house, HomeVestors probably isn’t the best route to take. However, if you need to sell quickly, if you need the cash ASAP, or if you don’t have the capacity to deal with repairs and the traditional listing process, working with the company may be a very good fit for you.
-
The price HomeVestors pays for a property will vary greatly depending on the property’s size, location and condition. The more work that needs to be done on the property, the lower an offer you’re likely to get. Like all homebuying companies, HomeVestors needs to be able to make a profit on the resale to make the purchase worth their while — don’t expect to get as high a price as you might from a buyer in a traditional sale.
You may also like
