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If you need to sell your home quickly, you may have heard of HomeVestors, also known as the “We Buy Ugly Houses” company. The company typically buys homes “as is” for ready money. Servicing some 45 states and the District of Columbia, they’re one of the biggest players in the cash-for-homes field.
Not sure if working with HomeVestors is a good idea? We did the due diligence so you don’t have to. Here’s everything you should know about this home-buying company.
What is HomeVestors?
HomeVestors works with homeowners to buy their property without requiring any major repairs. And the company aims to close transactions quickly. They typically purchase properties below their market value but save homeowners the trouble of having to renovate and spruce up a property for selling (hence the buying “ugly” houses slogan).
This method for selling a home can be helpful if you need to get rid of a property quickly or if you just don’t want to deal with the traditional listing process. Selling to HomeVestors could also be a good idea for you if you inherited a property you don’t want or if you don’t want to haggle with buyers (or wait for them to get financing approval from the bank) .
The home-buying service isn’t always the right fit, though. You may be able to get a higher offer for your property if you offered it on the open market. Additionally, you don’t have a listing agent to represent your interests in a transaction with HomeVestors: You pretty much are at the mercy of the company’s requests and process.
How does HomeVestors work?
HomeVestors has franchise locations in 45 states throughout the U.S., plus Washington, DC. They serve customers in Alabama, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.
The company purchases homes “as is” — no need to clean or re-arrange a thing. They make any repairs needed themselves. They can then resell properties for a higher price and make a profit.
If you are interested in selling your home to HomeVestors, you can reach out to a local office or fill out a form on their website. From there, the HomeVestors process for sellers is fairly simple.
- They send one of their property specialists to your property to take a look and answer any questions you have. While there, the property specialist will explain the process going forward.
- You will get a cash offer from the HomeVestors team shortly. The offer will not require you to make any repairs or clean up the property.
- Make a decision about what you’d like to do. You don’t have to accept the offer if you don’t feel like it will work for you. If you accept, you will be able to close in as little as three weeks and HomeVestors will cover any of the typical closing costs.
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 based on the market and condition of the house.” Still, while it won’t be a ridiculous sum, it’ll probably be something of a lowball bid — even taking into account you won’t have agent commissions and closing costs subtracted from it — and on pretty much of a take-it-or-leave-it basis. That’s generally how cash-for-homes operate.
There are several complaints listed on the Better Business Bureau page for HomeVestors of America, Inc. Although the company gets an A+ rating overall, multiple customers cite disappointment at the incredibly low offers received for their homes. It’s worth noting that HomeVestors is a network of independently owned and operated franchisees, so experiences can vary greatly.
Not sold on selling your home to HomeVestors? You have other options for selling your property. Consider these alternatives:
- Other home buying companies: HomeVestors isn’t the only company of its type. There are other home-buying companies you could talk to who have a similar model to HomeVestors’. You could even talk to multiple companies to see who will give you the best offer.
- iBuyers: Online companies like Opendoor or Offerpad are similar to HomeVestors but they do pretty much all of their work virtually. These iBuyers use algorithms to determine the value of your home and generate an offer. And they can often get you an offer in as little as 24 hours.
- Work with an agent: You can always go the traditional home-selling route and work with a real estate agent to list and sell your home. This method usually involves a little more work to get your property ready to sell, and will take longer, but it will likely get you higher offers.
Find a trusted real estate agent
As you consider your options, know that it’s important to find a trusted real estate agent. While you aren’t required to have a listing agent, they can help you get the best offer for your property. If you decide to sell your home by listing with an agent, you want someone on your team who has experience in your area and knows the current market.
An experienced agent will be able to tell you what’s important and what’s not as you prepare to sell your home. They can advise you on things like necessary repairs and staging your home. They will also know how to set a listing price that will ensure the best offer in the current housing market. Plus, an agent serves to represent your interests in the transaction, so you know you won’t get steamrolled by a buyer.
Still, it may well take more time and effort to sell a house this way, especially as the red-hot real estate market cools down. On the other hand, you likely won’t get the full fair market value for your home when you sell to HomeVestors, the convenience of the process may be worth it to you.
Yes, you can negotiate with HomeVestors — or try to. Some customers have been successful when trying to get a higher offer from HomeVestors.
Yes, HomeVestors is a legitimate company. The company makes cash offers to buy properties “as is,” and has franchised locations in 45 states throughout the U.S.
Determining what is a fair price is relative. HomeVestors works to give you an offer in line with the market value of the home, given its condition. Its bids may be on the low side — as most cash-for-home firms’ are — but it won’t be out of the competitive range.