We Buy Ugly Houses was originally founded in 1989 as HomeVestors of America. In 1996 the We Buy Ugly Houses franchise model came about, and between the two, more than 100,000 homes have been purchased nationwide.
There are about 1,100 franchisees represented in 45 states. Franchisees with We Buy Ugly Houses are home buyers and real estate investors who purchase “ugly” homes, which can be homes that are hard to sell or homes that have put the homeowner in a position where they are trapped in it.
We Buy Ugly Houses purchases these homes and fix them up to be able to rent them or sell them to investors or buyers. We Buy Ugly Houses’ goal is to help homeowners get out of an “ugly” situation.
How Much Can You Get for Your House?
We Buy Ugly Houses’ goal is to get you to accept the lowest possible off for your home. They are motivated to get it as cheap as possible. That’s how they get paid.
They may not charge real estate commissions, but they will deduct a lot of items from their offer. We Buy Ugly Houses reviews noted this clear difference in incentives between giving you the best offer and giving you an offer that makes them the most money.
How much do We Buy Ugly Houses pay?
There are reports of We Buy Ugly Houses offering as little as 50% of a home’s market value, there’s no hard-and-fast rule about how much the company tends to offer, especially when you consider that every franchisee is independent. But it seems that We Buy Ugly Houses adheres to a well-known rule in the house flipping circles: the 70% rule.
The 70% rule works like this: for a buyer to reliably turn a profit on a property, they should pay no more than 70% of the house’s after repair value (ARV), minus the cost of repairs and renovations.
Quick Facts about We Buy Ugly Houses
- We Buy Ugly Houses is a franchise model
- “Ugly” houses is not referring to the condition of the home for various reasons
- Homes are purchased at a discount since franchisees will be renovating
- We Buy Ugly Houses can give a cash offer at the first meeting
- Homes can be closed on as quick as three weeks
We Buy Ugly Houses business model
The We Buy Ugly Houses business model is very simple. The company looks for financially distressed homeowners with undervalued properties in subpar conditions (“ugly houses”). Offers a quick cash payment at below-market prices. Quickly renovates and flips the properties or rents them out.
Who are We Buy Ugly Houses best suited for?
We Buy Ugly Houses, is a good option for anyone that is looking to sell their home quickly. People who usually use We Buy Ugly Houses are people relocating for a job transfer, someone going through a divorce, people wanting to get rid of a rental property, someone that needs to sell an inherited property, someone trying to avoid dealing with structural or repair issues, and people that want to move without the hassle of the traditional real estate process.
What makes We Buy Ugly Houses different?
We Buy Ugly Houses, is a franchise model, making it different from other cash-for-home companies. The franchisees are the home buyers that purchase the “ugly” homes. They are investors that are allowed to buy homes for a lower cost with advertising benefits from We Buy Ugly Houses.
A legitimately licensed real estate company that has franchised businesses all over the United States. We Buy Ugly Houses reviews indicate it is a credible option for selling your home.
Why Sell to We Buy Ugly Houses?
We Buy Ugly Houses, is a company that focuses on buying distressed properties. They may make an offer on any home in any condition, except for mobile homes. They also specialize in older homes that need updating and have major repair needs.
The idea is that you can sell fast, no matter what condition your property is in, without doing any cleaning or repairs. We Buy Ugly Houses reviews often mention this as a plus.
How do We Buy Ugly Houses work?
For anyone wanting to sell their house fast, We Buy Ugly Houses might be the right option. We Buy Ugly Houses’ purchasing process is quite easy.
So, here’s it;
Submit information about your home. First, you would call We Buy Ugly Houses with information on your home that you would like to sell them. That is, contact your local We Buy Ugly Houses” franchisee online or over the phone and give basic information about your property, such as location, age, condition, square footage, etc.
Schedule an inspection. A local franchisee will reach out to you and help schedule a visit. The franchisee will evaluate the home, and help answer any questions about the process. We Buy Ugly Houses will view the property, often within 24 hours.
After inspecting the property, an agent from the company will make a cash offer. This offer is usually non-negotiable—in other words, it’s a “take it or leave it” offer.
Accept the cash offer. If buying the home makes sense financially, We buy Ugly Houses and will make a cash offer. If you decide to accept this offer, you’ll sign a purchase agreement and choose a closing date.
Cash buyers like We Buy Ugly Houses can offer much more flexibility on closing dates than traditional buyers since there’s no financing involved. Get paid. You can finalize the deal, and get cash in hand, in as little as two to five weeks.
How to get an offer from We Buy Ugly Houses
Home sellers can request an offer from We Buy Ugly Houses by completing the online form or calling their 1-800 number.
After the details have been confirmed, your local We Buy Ugly Houses franchisee will schedule a time to come and see your house, either virtually or in person.
Once the inspection is complete, the homeowner will get a firm all-cash offer from We Buy Ugly Houses. Unlike a traditional sale which usually involves contingencies so that the buyer can secure financing, there’s no risk that the deal will fall through because the buyer (We Buy Ugly Houses) couldn’t get a loan.
It can take between 24-48 hours to receive your offer, but in some cases, the offer can be made immediately.
Pros and Cons of Selling to We Buy Ugly Houses
Pros
- Trusted, nationally recognized brand with experienced investors.
- No need to worry about dealing with repairs before selling your home.
- Offers are sometimes made on the spot after the home inspection has been conducted.
- Can close in as little as three weeks.
Cons
- Cannot close as quickly as some other cash buyers, like We Buy Houses.
- The quality of service can vary depending on the franchisee.
- pay much less for your house than a buyer on the open market would. If you don’t know what your home is worth, it’s easier to be taken advantage of when you sell it for cash. The truth is, We Buy Ugly Houses often only offer to pay 60-65% of your home’s true value. No matter how quick and convenient these cash home sales are, that is a significant chunk of money they are taking from you.
Instead of focusing on the 40%, they aren’t paying you for your home, these “We Buy Ugly Houses” companies like to focus on some smaller numbers you’ll pay when selling through a real estate agent. They’ll mention the 6% commission, the 2% that goes to closing costs, and other fees such as those that go to repairs.
So, while it might seem great that these cash home buyers don’t charge you any fees or commissions, remember that they are only offering you 65% of what you should be getting when you sell your home. Home sellers might feel pressured to accept an offer without weighing their options carefully.
A seller should know the true value of the home
In reviewing we buy ugly houses, as a seller whatever your reason for selling, knowing the true value of your home puts you in a much better position. Instead of being happy that a cash home buyer is offering you $80k for your home, you’ll know that your house should be fetching something closer to $120k.
When you have this information at your disposal, you have a clear advantage. If you still prefer to sell your house for cash, you can demand better offers. However, you may also recognize that the best way to get full price for your house is to sell through a real estate agent.
Even if you want or need to sell your house quickly, selling through a real estate agent is a viable option. It might not be as fast as selling to a cash home buyer, but you’re guaranteed to make more money selling through an agent.
If you can make $30k more selling with a real estate agent, but you have to wait three more weeks to get access to that money, you have a decision to make. Regardless of what you decide, knowing your home’s worth gives you a distinct advantage.
Conclusion
According to We Buy Ugly Houses reviews, they are prompt when you reach out to make an appointment for them to see your home. More than that, they’ll come to inspect your property to evaluate the condition and repair costs needed to prepare it for a full market value sale.
They are normally good about closing the deal within 30 days. Some say they can close faster if they are truly paying cash, or are wholesaling and assigning their contract with you to another outside investor.
The overall reviews on We Buy Ugly Houses have been an encouragement for sellers who are interested in selling f their properties without going through the hassle of real estate agents.
References
- https://www.upnest.com
- https://www.realestatewitch.com
- https://listwithclever.com
- https://www.thepennyhoarder.com
- https://www.isoldmyhouse.com
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