Driving around any major city or even a small town these days, you’re bound to run into signs purporting to give you cash for your house. These house flipping companies look to buy rundown houses at a low price with a quick payday for owners. Companies then either fix them up or resell them to other investors without using the normal channel of real estate agents.
Because agents often take a 6% commission, many sellers try to avoid paying that money out of pocket. While it can be attractive to get the sale done fast, there is a lot to know when working with companies like HomeVestors. Here’s everything you need to know about working outside the network of experienced local real estate agents.
Who Is HomeVestors?
HomeVestors is a company that allows franchisees to open their own business buying property. They’re a national franchise buying homes as-is in order to renovate and then sell them. They focus on rundown residential properties rather than commercial ones.
While some homeowners end up in a position where they need to sell quickly, many people own properties that they don’t have time to renovate on their own. Rather than investing the time and money to fix them up, companies like HomeVestors take on that role.
While this can be a quick way to sell a house, it’s not necessarily the most lucrative. Often, companies like HomeVestors need to submit a very low offer to cover their own overhead. Their franchisees are responsible for hiring contractors to handle repairs and to ensure that work is done on time so that HomeVestors can take their cut of the profits quickly.
Companies like this thrived during the housing crisis of 2008 and 2009 but are still in operation today. They allow new real estate investors to get their own franchises off the ground and exchange speed and efficiency for the kind of value that you could make with a realtor.
Looking at the Better Business Bureau’s website, HomeVestors has moderately good reviews with an A+ from the BBB. This means that they respond to complaints, get positive feedback, and are a reputable business.
The major complaints come from sellers who receive too low of an offer from the franchises they work with. This comes down to the market, the condition of the home, and how serious the seller is about needing to get rid of their home. However, offers as low as $3,000 are unfortunate when someone is giving up their home in exchange.
Positive reviews tout the professionalism of representatives and how accommodating they are. For people who didn’t have time to put their home on the market, HomeVestors can save them the effort. However, as with any franchise, the kind of service you get varies from place to place.
The Benefits of Working With HomeVestors
Working with a company like HomeVestors makes things easier for you if you need to make a quick sale. Doing the work on your own can take up all of your weekends and you might not have the budget to hire someone.
Rather than deciding on repairs, how much to sell the home for, and when to sell it, house flipping companies allow you to make just one decision. All you have to decide is to sell to them and then the whole process is over. It can take months to close a traditional sale.
Something that sellers love is that homes can be sold no matter what shape they’re in. Rather than dealing with the steady deterioration of a home or one that’s no longer habitable, home flippers take on the work of dealing with that so you don’t have to.
Why You Might Want to Avoid Home Flippers
If you invested a lot of time and money into making your home the best it could be, it might not be very appealing to deal with a home flipper. They’ll pay you much less than you’d make dealing with a realtor. Realtors will tell you that going the FSBO route can forfeit 33% of the value of your home and flippers will cut you down by even more than that.
One of the ways you can ensure that you get a better price for your home is to devote a few weekends and a few hundred dollars to fix it up. When you do that, you’re more likely to get a fast sale for a price that works for you and your family. If you put in this effort and go with a home flipper, they won’t care as they’re more likely to just tear out the walls you repainted anyway.
Considering Alternatives to Home Flippers
If you’re thinking about working with a home flipper because the thought of paying real estate commission is too much, you need to find a low-commission agent. When you hire a low-commission full-service local agent, you get someone on your side who is committed to ensuring that you get the best price without gouging you later on.
Working with a Clever Partner Agent will qualify you to potentially save thousands on your closing costs. That’s because our vast network of Partner Agents will charge you a flat rate of $3,000 or just 1% of any sale that’s over $350,000. This means massive savings on the cost of working with a listing agent.
Contact us today to ensure that you get the best price for your home rather than having to settle for less.