Pros & cons | How much do they pay? | Locations | Reviews | FAQs
🔑 Key takeaways:
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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.
» READ: Our comprehensive review of We Buy Ugly Houses.
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.
HomeVestors, At a glance | |
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Closing time | As little as 3 weeks |
Offer time | 24-48 hours |
800+ franchises in 45 states | |
Related companies/trademarks | We Buy Ugly Houses, DealVestors |
Pros and cons of selling to HomeVestors
✅ Pros
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❌ Cons
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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 locations
HomeVestors has over 800 franchises in 46 states, so they are widely available to home sellers.
HomeVestors reviews and complaints
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:
FAQS about HomeVestors
Who is Robin Milligan of HomeVestors?
According to LinkedIn, Robin Milligan is currently an executive in the collections department at the HomeVestors corporate headquarters in Dallas, Texas. Robin Milligan's name shows up in HomeVestors customer reviews because it is often affixed to the marketing material that local HomeVestors franchises send out.
She is a real person who does in fact work for HomeVestors, but her name seems to be used on marketing materials in order to boost their credibility. If you've received mail with Robin Milligan's name on the return address, it likely comes from your local HomeVestors franchise and not Robin Milligan herself.
Is HomeVestors a scam?
HomeVestors is not a scam — it's a legitimate cash buying brand with franchises across the country. HomeVestors pays less than fair market value for houses in order to resell them for a profit.
The quality of service that you receive may vary from franchise to franchise since each one is independently owned and operated. Make sure you do your research on your local franchise to find out if they have a good reputation before contacting them.
Is HomeVestors legit?
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.
Are there any problems with HomeVestors?
As a home seller, the biggest problem you're likely to encounter with HomeVestors is that they won't pay much for your home. Cash buyers like HomeVestors often operate using the 70% rule, which means they'll pay no more than 70% of the home's after repair value, minus repair costs. In fact, they might pay even less than 70% to maximize their profits.