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Maybe you’ve heard about We Buy Ugly Houses or probably have seen their ad signs on the side road, billboards, or on trucks of a cartoon caveman that shows their contact info. These companies promise to buy homes for sale fast whether it’s in gross disrepair or in perfect condition. Yes, in any kind of condition even with structural issues! Though it looks promising, home sellers should be aware of the drawbacks and risks associated with these cash home buyer companies.
The original We Buy Ugly Houses is a popular cash buyer company in America called Homevestors. It’s a nationwide network of investors who offers a quick and easy home deal, for a significantly lesser amount of cash that property can fetch in the open market. Of course, you don’t want to fall prey with a company smeared of sleazy reputation. Worst, you should not accept less amount to what its actual value.
So, be wary and learn more about the buyer before you hand over the keys. Here’s everything you need to know if you’re considering selling your house on We Buy Ugly Houses:
Did you know Houzeo’s Gold Plan provides relevant Federal and State Seller Disclosures?
A Quick Look: What is We Buy Ugly Houses?
We Buy Ugly Houses is one of the most widely known cash home buyers in America since 1996. The trademark belongs to a Dallas-based company called HomeVestors of America, Inc., a real estate brand that gives out cash offers even to worn out, neglected, and unwanted homes. In a way, you’re selling your home to an independent contractor if you negotiate to a We Buy Ugly Houses buyer.
The company states that the “HomeVestors and We Buy Ugly Houses franchisees have purchased 85,000+ homes nationwide”. However, there’s a catch here you should probably have guessed right now. You can expect their offers to come in at 30 to 50% below the market value of your house.
How Does We Buy Ugly Houses Really Work?
From sending a form to closing the deal, the home-selling process at We Buy Ugly Houses is straightforward.
- Send an online form or call their toll number on their website. Once done, for 24 hours or less, they will assign a representative to do a house inspection.
- The representative will make an offer for your property through a series of property valuation models.
- You can then sign the legal paperwork and documents to begin the sales process once you accept the deal.
- The seller then schedules a closing date for the signing of sale paperwork —you hand over the keys and the money will be transferred. That’s all there is you have to undergo.
Pros and Cons of Selling Your Home to We Buy Ugly Houses
Selling your home should be taken seriously and with the utmost care. You are talking about money here. You got to weigh the advantages and the downsides of the home buyer before taking any step further.
Purchase the house without considering its condition.
The primary goal of the company is to sell your home fast. That means, they give an offer no matter what the houses’ condition. They don’t care if your property is under repair or abandoned for a long time.
Often offers a quick deal on-the-spot as the on-site appraisal.
You only got one decision to make: to sell or not to sell. There’s no need to find a real estate agent to help you with the transactions.
You’re trusting your property to a company that has several franchises.
Surely, you want to sell your house to someone credible and honest about what they are working on. On their website, it states that they “have over 200 independent franchisees in 33 different states … and approximately more than 900 franchises spanning across 45 states and growing.”
Covers “normal” closing costs once the offer is decided.
Unlike other cash buyers, they charge no hidden costs at closing. They keep the costing “normal” as to what they’ve promised—fees such as transfer taxes, recordation fees, and settlement costs.
The cash offer is usually significantly below market value.
Selling your home as fast and easy does come with a price. And it’s a price not worth much for what you are selling.We Buy Ugly Houses offers can come in at 30 to 50% below market value of your home.
The timeline of the selling process may take longer.
The entire process may take a month or longer than a full-rate agent. Although the closing period can only take for about three to four weeks (or sometimes longer).
You may deal with complications towards the independent contractor model.
This kind of complication may happen to anybody. You may experience personalities clash or your home-buying experience can get too unpleasant.
Is it really worth the trouble?
The main disadvantage of selling your home to a cash buyer is the low offer it certainly proposes. The speed of the selling process, however, softens the blow of the terrible deal. But if you really ponder about it, you’ll get the same result hiring a professional real estate agent to do the process for you.
Through analyzing the market and offering the right price, a professional agent could pull off what We Buy Ugly Houses can do—and that’s for a greater price.
We Buy Ugly Houses can be a reasonable choice for desperate home sellers that want cash right away. This kind of option is worth the try if you’re considering not doing repairs anymore (or just simply hate the house). Staging and preparing your home can do just fine. Don’t forget to repaint and declutter before so the property’s value can get higher, and can get better offers.
How credible is the We Buy Ugly Houses service?
There are several reviews circulating on the web about this kind of real estate business. Though some issues and complaints have been resolved, it’s not wrong to be cautious and evaluate other options that are currently better. You can check Better Business Bureau or directly visit their website webuyuglyhouses to know about their client’s experience. You can also read other online reviews or simply ask people who have tried their services before.
Big real estate companies like We Buy Ugly Houses obviously belong to the We Buy Houses for Cash category. These are real estate investors who make low-ball cash offers—regardless of the home’s shape or age—and resell them for a much greater price. Almost every We Buy Houses for Cash operation isn’t a reliable idea for home-selling, especially for a decent house that only needs a little makeover. However, there’s an alternative option called Flat Fee MLS that costs less with a higher deal.
So, Should You Sell Your House to Them?
At its core, this kind of company targets motivated sellers to purchase properties fast for immediate cash. However, before you sell your property, you need to think it over. Is there anything you can do to make your house more appealing so you don’t have to sell it easily? Can you still do minor improvements? Or ways to boost your home’s curb appeal?
Although this business is legit and offers cash fast, you may not really see your home’s true potential in the market. First, you might never know other offers for your home. Second, you have not tried the best to do what’s best of your home’s worth. But if you prefer to avoid the hassles along the way in home-selling, there are other options too to consider. FSBO, for example, is a great pick or Flat Fee MLS that is a tailored-service package that helps market your home the best possible way.
We Buy Houses For Cash VS Flat Fee MLS Listing
True, the quick-cash deal may sound perfect, but many sellers haven’t realized that they can possibly get more than twice as much for their home’s value. For instance, some flat-fee MLS services often offer cheaper rates and can list your house without charge.
The We Buy Houses for Cash is intended for sellers who have no time to find a buyer and don’t want to get tangled with the process. Though the market offer is fast and can buy your house “as is”, it’s still not a good deal. Other than a steep cut in the sales price, this company is often vulnerable to equity skimming, wherein someone may possibly get hold of your home title, take your profit, and get away with it easily.
On the other hand, a Flat Fee MLS service offers a solid exposure to sell your home. They target agents in your local area who can help you find a potential buyer. The major costs can only consist of the buyer’s agent commission (around 2-3%), photos on the MLS, legal documents, and other negotiation fees.
At Houzeo, there are available customized plans that fit your only needs. They’ll list your home at an affordable price on listings like Zillow, Trulia, Redfin, or Realtor.com all the while keeping your home-selling experience simpler.
Did you know Houzeo’s Gold Plan provides relevant Federal and State Seller Disclosures?
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We Buy Ugly Houses FAQs
We Buy Ugly Houses is one of the most prominent cash home-buyers business in America since 1996. Its main purpose is fast cash offers to properties in any condition. Whether these be material defects or legal issues, they’ll purchase your house without considering its current condition. Often, they offer a quick deal on-the-spot during the on-site appraisal. As good as it sounds, you may need to expect a low-ball offer for your home for about 30% to 50% below of the actual sales price.
The overall process in We Buy Ugly Houses can be simple and straightforward as this.
1. Send an online form or contact through their website. A representative will visit you for a house inspection.
2. After inspecting your home, they’ll make an offer for your property via a series of property valuation models (30 days estimated timeline).
3. Sign the legal documents to accept the deal.
4. On the closing date, complete signing some papers and then the offer is given to you.
We Buy Ugly Houses belongs to a Dallas-based company called HomeVestors of America, Inc., a real estate brand that gives out cash offers even to worn out, neglected, and unwanted homes. Simply put, you’re marketing your home to an independent contractor if you try to avail the We Buy Ugly Houses cash offer in selling your property.
Definitely. Most clients who tried to work with We Buy Ugly Houses are given the choice to either sell their property or not for a low cash offer. Although the company seems credible, you still need to ask legal advice from your real estate attorney. Or verify it your own and double-check everything—from testimonials to business registrations.
Pros: (1) They’ll purchase the house without considering its current condition. (2) Often offers quick deal on-the-spot in the on-site appraisal. (3) A home cash buyer business that has several franchises in 45 states. (4) Covers “normal” closing costs once the offer is decided. (5) No need for repairs and improvements to get the sale. (6) No real estate commissions.
Cons: (1) The cash offer is usually significantly below market value. (2) The overall selling process could take longer. (3) You need to deal with complications towards the independent contractor model.
Technically, after We Buy Ugly Houses purchase your property, they’ll try to resell it for a larger profit. Often, they will fix or do some minor improvements to the sold the “ugly” houses. Overall, they’ll make sure your house is sold again through renovating and marketing efforts.
We Buy Houses for Cash is targeted to desperate sellers who don’t want the hassles of the selling process. Although the quick deal can be tempting, you’ll have to expect a significantly below the market value offer. On the other hand, a Flat Fee MLS service offers a sold exposure to sell your home with just a little cost. Houzeo, for instance, has affordable plans starting with only $99 for basic MLS package.