🔑 Key takeaways
HomeVestors is a national cash buyer with franchises in 46 states.
Each franchise is independently owned and operated by a local real estate investor who pays franchise fees to HomeVestors. These franchise fees also give investors the right to advertise using HomeVestors' "We Buy Ugly Houses" trademark.
HomeVestors franchisees purchase residential properties "as is" from sellers in difficult situations, such as:
- Relocating on a tight timeline
- Facing foreclosure/other debt problems
- Needing to sell an inherited home
- No time or money to fix a house that is in need of extensive repairs
Like other companies that buy houses for cash, HomeVestors looks to make a profit by fixing up and reselling houses. This means that they're looking for a steep discount when they buy properties — sometimes as little as 55% of the home's after repair value, minus any anticipated repair costs.
Homeowners who want to get the most possible value for their home should try listing on the open market with the help of an agent instead. By advertising your house for sale, even if it's in poor condition, you can attract competitive offers and sell for a price that reflects the home's fair market value.
Pros and cons of selling to HomeVestors
How much does HomeVestors pay?
HomeVestors pays less than fair market value, but investors are allowed some flexibility to determine how much they'll pay for a home since each franchise is independently owned and operated.
Like other cash buyers, many HomeVestors franchisees operate using the 70% rule.
This means that they'll pay no more than 70% of your home's after repair value (AVR), minus repair costs. The biggest problem with this formula is that HomeVestors estimates the repair costs for you, so they might inflate their costs in order to make the offer seem more favorable.
(AVR x 0.7) - Repair Costs = Purchase price
For example, if they think that your home could be worth $200,00 after it's fixed up, and they estimate that it needs $20,000 of repairs, they won't pay more than $120,000.
Here's how the math pencils out:
($200,000 x 0.7) - $20,000 = $120,000
In fact, some sources indicate that HomeVestors pays as little as 55% of the after repair value, minus repair costs.
HomeVestors has over 800 franchises in 46 states, so they are widely available to home sellers.
HomeVestors reviews and complaints
Customers give Homevestors 2.5 out of 5 across 65 reviews.
Customers who gave positive reviews of HomeVestors appreciated things like:
- The speed of the transaction
- The professionalism of the service they received
- Being able to sell with no hassle
On the other hand, negative reviews of HomeVestors focused on things like:
- Offers being way too low
- Feeling pressured to sell
- Constant unwanted mailers and text messages
What customers liked
This customer in Florida sold their home quickly enough to close on a new condo:
This home seller in Texas said the HomeVestors franchise they worked with was quick and professional:
What customers didn't like
A reviewer in Georgia said that her mother quickly accepted an offer from HomeVestors, only to find out later that they listed it a week later and sold from almost $90,000 more:
This home seller in Georgia was offended by HomeVestors low offer and felt that the company didn't reflect recent updates that had been made to the home: