What is HomeVestors?
HomeVestors of America (HVA), is a North American company that specializes in real estate investing.
It focuses on purchasing and renovating distressed homes, then reselling them to new owners who plan to live in the house.
Founded in 1995, HVA has grown from a single franchisee in Dallas, Texas with 4 employees to a company with more than 900 franchises in 49 states.
One of the benefits of being a HomeVestors franchise is that you don’t need any prior experience in real estate or home renovation.
HVA provides all of its franchisees with extensive training and support, including assistance finding and purchasing distressed homes, rehabbing them, and then reselling them.
HomeVestors is one of the leading cash buyers in the country. In fact, according to their website, they are “America’s #1 Home Buyer.” Yet their name isn’t instantly recognizable to most consumers.
Instead, they are more known for their famous slogan, “We Buy Ugly Houses!”
HomeVestors will make a cash offer for your home, as-is. and because HomeVestors offers cash for your home, the closing timeline is much quicker than it would be with a traditional buyer.
There’s no need to wait for mortgage approval or paperwork, so you can close in as little as three weeks.
7 things to know before buying a home from HomeVestors
If you’re thinking of buying a home from HomeVestors, here are some things you should know:
- HomeVestors are usually priced below market value.
- All HomeVestors homes are inspected and come with a warranty.
- You can buy a home from HomeVestors even if you have credit issues.
- All home purchases from HomeVestors are final, with no returns or exchanges.
- There are no fees to buy a home from HomeVestors, but closing costs may apply depending on your financing.
- Every home purchase is handled by an attorney, so you don’t need to hire your own real estate attorney or home inspector for the home inspection.
- HVA provides franchisees with assistance finding mortgages so you don’t have to worry about the home loan process.
Pros & Cons of Selling to HomeVestors
Pros
- Availability: HomeVestors is a national brand, so it’s an option for most home sellers.
- No Repairs. You don’t need to worry about prepping your home for listing photos or paying for repairs because HomeVestors purchases house as-is.
- Fast Closing. When you sell to HomeVestors, you can close in as little as three weeks. However, if you need extra time, they will still work with you.
Cons
- Quality Of Service Varies. Since franchisees are independently owned and operated, the quality of service may vary. Complaints made by previous sellers are usually about specific franchises, not the entire company.
- Lower Offer Prices. HomeVestors won’t pay nearly as much as a buyer on the open market would. You could be missing out on tens of thousands of dollars by selling to a cash buyer.
- No Representation. If you sell directly to HomeVestors, there’s no one to represent your best interests, so you’ll have to negotiate and evaluate HomeVestors’ offer on your own. Whereas when you list with a real estate agent, they work for you and typically do everything they can to help you get the best deal possible.
Buy Ugly Houses
So you’re interested in buying an ugly house? Well, you’re in luck! There are a number of benefits to buying a home that’s considered “ugly.”
Let’s take a look at some of the most important things to know before making your purchase.
1. You can get a great deal on an ugly house.
Since these homes generally aren’t as popular as their more aesthetically pleasing counterparts, you can often find a great deal on an ugly house. In some cases, you may even be able to get it for free!
2. Ugly houses are often easier to renovate.
Many times, the reason a home is considered “ugly” is that it needs some renovation work. This means that you’ll likely have an easier time fixing it up to your liking than you would with a home that’s already in good condition.
3. You can customize an ugly house to your own specifications.
Since ugly houses often need some work, you’ll have plenty of opportunities to customize them to your own specifications. This can include everything from the color of the paint on the walls to the type of flooring you choose.
4. You can live in an ugly house while you’re renovating it.
If you’re not quite ready to move into your new home yet, don’t worry! Many people choose to live in their home while they’re renovating it, which can save them a lot of money in the long run.
5. Ugly houses can be a great investment.
Even if you don’t plan on living in your ugly house forever, that doesn’t mean it can’t be a great investment. In fact, many people find that they can make a lot of money by flipping ugly houses.
6. Ugly houses often come with a lot of lands.
Since many ugly houses are located in rural areas, they often come with a lot of lands. This can be a great perk for those who are looking for some extra space to call their own.
7. Ugly houses are perfect for those who love to renovate.
If you’re the type of person who loves to renovate, then an ugly home is perfect for you.
You’ll have plenty of opportunities to try out your home renovation skills without worrying about upsetting the home’s original design.
By now, you’re probably thinking that this sounds pretty great! Don’t worry…you’re not alone!
Lots of home buyers are drawn to these types of homes because they offer so many unique benefits.
If you want to learn more about buying an ugly house, contact a company like HomeVestors of America.
They can help guide you through the home buying process and provide additional information on what it’s really like to purchase one of these properties.
Do HomeVestors pay a fair price for homes?
When buying a home, home buyers always want to get the most for their money.
This is true whether they are buying a home from HomeVestors or any other home buyer.
HomeVestors average purchase price: $36,000
HomeVestors buy homes in need of repairs and resell them after fixing them up.
While it’s not necessarily what everyone is looking for, there are benefits to this approach. For one thing, it puts less responsibility onto the original buyer
Can you negotiate with HomeVestors?
Yes, you can negotiate with HomeVestors. In fact, it’s recommended that you do so. Keep in mind, however, that the company is always looking for a good deal for itself, so don’t push too hard. You want to stay on good terms with HomeVestors since you might need its help with an issue down the road.
Is there financing available through Homevestor’s company?
While most of the homes that HomeVestors purchases are occupied by renters or deadbeat homeowners, sometimes an owner-occupant will sell their home to the company via private sale. If this happens, Homevestors can act as a lender and finance the transaction directly with the home seller.
What are the top 5 things to look for when buying a house from HomeVestors?
1. Inspect the home carefully for structural issues, including mold, water damage, or signs of rodents. Although Homevestors is supposed to fix these problems before selling the home, Homevestors who do not may be forced to disclose them during a sale.
2. Ask HomeVestors “home protection plan” for their home warranty coverage so you can see how much it covers and if there are any exclusions.
3. Make sure you have all repairs done in writing before HomeVestors closes the deal so you don’t get stuck with unexpected costs.
4. Check your local neighborhood association’s HOA rules about what you can change about your house after buying it so that renovation plans won’t be canceled.
5. Get a home inspection and title insurance to make sure there are no hidden surprises in the home’s past or future home.
Do HomeVestors provide home warranties?
HomeVestors usually does not offer home warranties for properties it has purchased. However, individual franchises may sell home warranties if they so choose. It’s best to ask your local franchise about home warranties before signing a contract.
What kind of warranty does HomeVestors offer?
HomeVestors offers a 90-day warranty on all homes it sells. This warranty covers any major defects that are discovered within the first 90 days after purchase.
Pay cash In HomeVestors
home sales, homebuyers are expected to pay in full before the home is purchased. If homebuyers cannot make a cash purchase, they may need to seek out an alternative home buying company.
HomeVestors do not require home buyers to bring their checkbooks when touring homes with Homevestors agents. However, homebuyers will be expected to provide a deposit or earnest money to show that they are serious about purchasing a home from HomeVestors. The amount of money required as a deposit varies by franchise location and property value.
Alternatives to HomeVestors
Still not sure whether HomeVestors is for you? Look at some of your other options
Cash Buyers
If you’re leaning towards working with a cash buyer, HomeVestors isn’t your only option. There are other cash buyers available to you.
In fact, you should reach out to more than one cash buyer. Their evaluations are free, and they’ll give you a chance to compare offers and see what’s a fair price.
We Buy Houses
We Buy Houses has a model similar to HomeVestors’. They will visit your home and make you a cash offer within 48 hours.
As with HomeVestors, there are no hidden fees or closing costs.
On the plus side, however, We Buy Houses can close in as little as 7-14 days. If you’re really in a hurry for cash, they might be a better option.
iBuyers
An iBuyer (instant buyer) will also make a cash offer for your home. Unlike cash buyers, they will usually make you a cash offer before seeing your home.
Their offers are based on the details you provide: square footage, age, number of bedrooms/bathrooms, and so on.
If you accept their initial offer, they’ll conduct a home inspection. If any major repairs are needed, they’ll deduct the costs from your initial offer.
buyers might offer more money for your home, but they typically charge quite a few fees: service fees, selling fees, closing costs, and repair costs.
Zillow Offers
One of the most popular iBuyers is Zillow Offers, the iBuying division of Zillow.
Once they receive your information and verify your eligibility for their program, you’ll receive a phone call from a Zillow Advisor to answer your questions and gather a bit more information.
In about two business days, you’ll receive a cash offer on your home, based on Zillow’s Zestimate tool, market trends, CMA reports, and your home’s unique features.
You’ll have five days to accept or decline their non-negotiable offer. If you decide to accept it, Zillow Offers will schedule an in-home evaluation for repairs, determine repair costs, and finalize their offer.
In addition to the repair costs, Zillow Offers will deduct: closing costs of 1% to 2%, selling costs of 6%, and a service charge between 1.5% and 9%.
Real estate agent
Working with a Realtor will get you the highest offer for your home. And depending on the market, you might even start a bidding war. If you get multiple offers, you could end up selling your home above the listing price.
Realtor commissions usually range between 2.5% and 3%. As the seller, you’re responsible for paying both real estate agents, for a total of roughly 5% to 6%.
However, compared with the low offers and high fees charged by others, you can easily make more money when you work with a Realtor.
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Is HomeVestors a reputable company?
Yes, HomeVestors is a legitimate business. The company has franchises across the country that buy homes for cash. Home sellers who request an offer from HomeVestors might be disappointed by how little they pay, but their business model relies on purchasing homes at a discounted price.
Should you sell your house as is?
If you need to move pronto and don’t want to make repairs to your home, selling it as is could be a good option. But keep in mind, it’s like slapping a big ol’ clearance sale sign on your house Everything Must Go! Sure, you’ll definitely earn less money at the closing table than you would if you made the repairs.
How do home buyers get my phone number?
Usually, real estate agents looking for marketing leads obtain prospects’ numbers from “For Sale by Owner” listings. Another way is by going through expired listings. … A realtor may call numbers obtained in this manner, subject to certain restrictions.