HomeVestors, known more familiarly as “We Buy Ugly Houses,” is a national real estate investment franchise network. One of the largest cash home buyers, the company specializes in buying houses as-is, targeting owners looking for a quick transaction.
HomeVestors positions itself as an alternative to traditional home sales, helping sellers avoid repairs, staging, and long closing timelines. However, as a trade-off for this convenience, HomeVestors’ offer prices are lower than the market average.
While HomeVestors offers a straightforward selling process, reviews highlight varying experiences depending on the franchise. Sellers should carefully consider multiple offers and consult a professional to ensure they receive a fair value for their homes.
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Who HomeVestors works best for
Homeowners who need a quick and hassle-free sale. Ideal candidates include:
- Individuals facing foreclosure or financial distress: These sellers could benefit from the company’s quick closing process and their ability to buy a home as-is.
- Owners of inherited properties: This solution could suit inherited homes requiring substantial renovations or time-consuming upkeep. Also, it could work for heirs who inherit out-of-state properties and want to sell quickly.
- Landlords with tenants: Many home seekers are less willing to buy a house with tenants, and even some cash homebuyer companies only purchase owner-occupied properties.
- Quick sale seekers: If you need to close on a home as soon as possible due to job relocations, family circumstances, or other pressing issues, and you don’t mind sacrificing some profit for the convenience of a quick sale, HomeVestors might be for you.
How HomeVestors works
- Request a consultation. Sellers initiate the process by submitting an online form or calling their local franchise.
- Schedule a walkthrough. A franchise representative evaluates the property’s condition and determines whether repairs are necessary.
- Receive an offer. The seller receives an as-is cash offer, usually within 24-48 hours of the walkthrough.
- Close quickly. If the offer is accepted, the closing process can be completed in as little as three weeks, though some sellers may find this timeline slower than competitors.
Generally, this process matches industry standards how cash buyers usually work. However, some other companies offer quicker closing times (Clever Offers can close as quickly as one week, for example) and virtual inspections.
Who should avoid HomeVestors
Homeowners seeking top dollar for their property, who can afford repairs, or those who can afford to wait a bit longer to finalize the sale may find better alternatives. The company’s offers often fall below market value as their model prioritizes resale profit margins.
Recent reports have highlighted potential ethical concerns in specific franchises, including allegations of pressuring vulnerable sellers.[1] Consumers should research their local franchise and consult legal or real estate professionals before proceeding.
HomeVestors reviews
Customer rating overview
| Source | Customer rating | Number of reviews |
|---|---|---|
| Better Business Bureau | 1.5/5 | 37 reviews |
| 4.6/5 | 2,400+ reviews | |
| *HomeVestors doesn’t have one dedicated page on Google, and many local franchises are listed under the “We Buy Ugly Houses and HomeVestors” name. | ||
Positive experiences
Many home sellers noted the professionalism and efficiency of the local franchise representatives.
Bobby and his team are experienced real estate professionals. They know Tucson, and they know their stuff. They look out for the best interest of their clients and create win-win transactions.
— Jerry T., Arizona.
Another aspect that customers praise is the hassle-free closing process and the transaction speed.
The process was straightforward, well explained and executed. Emily met with me on site numerous times and went over all the elements, leading to a successful and speedy closing.
— Steven H., Pennsylvania.
Negative experiences
Some HomeVestors complaints include reports of low offers, lack of communication, and last-minute deal cancellations.
Very disappointed in their attempt to lowball me on my house with unreasonable and inaccurate repair costs.
— Todd T., Texas
It’s worth noting that many negative reviews from BBB and some of those on Google mention receiving spam letters even after opting out multiple times. Those reviewers did not use the company’s services.
📖ProPublica investigation of HomeVestors of America in a nutshell
This nonprofit investigative journalism company wrote a deep dive into HomeVestors, its business model, and practices. The most critical findings include:
- Targeting vulnerable groups, such as elderly and financially distressed homeowners
- Many franchisees engaging in predatory practices
- Legal strong-arming if the seller tries to back out of the deal
📢 ProPublica investigation: Redditors weigh in
A Reddit thread discussing ProPublica’s investigative report on HomeVestors has gained significant traction, with users sharing personal experiences and opinions about the company’s practices.
Key takeaways from the discussion:
- Many commenters admit that the company serves its niche, and similar problems are typical for all franchise cash buyers.
- Other commenters believe that the responsibility lies not on particular franchisees but on franchisors and the industry in general.
- A lot of people agree that the purchase prices offered by HomeVestors are significantly below the market average, but some note that sellers get the convenience of a fast closing and selling the house as-is in return.
Pros and cons of HomeVestors
Pros
- Fast transactions: Ideal for sellers needing to close quickly, with offers typically made within 24-48 hours of the initial walkthrough.
- No repairs required: Properties are purchased as-is, saving sellers time and money.
- Convenient process: Selling to a cash buyer allows homeowners to skip many steps such as pre-sale preparations, showing the property, and negotiating with buyers.
Cons
- Lower offers: Sellers often receive offers below market value usually, as the company’s business model prioritizes flipping for profit.
- Franchise variability: Customer experiences differ significantly based on the local franchise.
- Ethical concerns: Recent investigations have uncovered questionable practices in certain locations.
Alternatives to HomeVestors
| Company | Listing Fee | Average Rating | Best For |
|---|---|---|---|
| Clever Offers | Free | 5/5 | Getting multiple competitive offers |
| Redfin | 1% | 4.5/5 | Affordable listing fees |
| Ideal Agent | 2% | 4.6/5 | High-end properties |
| UpNest | Varies | 4.4/5 | Comparing local agent options |
Summary of alternatives
- Clever Offers: A standout option for sellers looking to maximize profits while still selling quickly. The platform connects homeowners with vetted cash buyers, ensuring competitive offers.
- Other options: Companies like Redfin and Ideal Agent offer cost-effective alternatives with strong customer ratings and lower commission rates.
HomeVestors franchise model
Upfront investment
Franchisees must invest between $109,000 and $461,250, depending on the franchise type. HomeVestors offer two types of franchise — Associate Franchise (starting from $109,000) and Full Franchise (starting from $155,000).
Support provided
HomeVestors offers franchisees mentorship, marketing materials, lead generation tools, market research, and access to a proprietary app for property evaluations. Financing options may also be available.
Bottom line
HomeVestors provides a quick, hassle-free option for sellers looking to offload properties without repairs or extended timelines. However, consumers should weigh the lower offers against the convenience provided. Exploring alternative cash buyers and consulting a real estate professional can help sellers secure better deals.
Want to sell quickly and for top dollar? Try Clever Offers to compare cash offers from multiple cash buyers at no cost or obligation.