It's everyone's dream to have that one house showcased on TV or on billboards that has everything, including a majestic garden. Everyone is trying to buy the best house in the market and switching up their living.
So, that brings the question, who would buy ugly houses? And why are they all over adverts and the talk of the day?
Keep reading this article, and we'll answer the question How Do We Buy Ugly Houses Work and delve deeper into what the company is.
What Is We Buy Ugly Houses?
If you need to sell your house quickly because you're in a tricky situation or downsizing, then understanding how we buy ugly houses work is essential for you!
They offer a hassle-free service by advertising, letting you know they'd take your house in any situation it is, and they give fairly quick and fast payments. No matter what condition or state your home's in, they will provide you with a value.
So, if you are hoping to sell your house and need a quick sale without the long and tedious house selling process, constant cleaning, never-ending repair jobs, and multiple showings, then we buy ugly houses is a quick way out.
Also, the seller does not pay any commissions, and we buy ugly houses pay all regular closing costs.
How Do 'We Buy Ugly Houses' Work?
So, now that we have grasped who we buy ugly houses are, we can look into how they work and the usual procedure.
We buy ugly houses is part of a larger company Home Vestors which is like a franchise with independent pieces.
All this works in a business-oriented manner. As long as there are profits, every little profit sums up to one significant financial gain.
House buying and flipping
We buy ugly houses takes advantage of the potential profit in the housing market that is always a continuous investment chain. Everyone wants to buy a house or upgrade from the current one by selling it.
That's where we buy ugly houses comes in. They target specific homeowners looking to seal a quick deal.
House flipping is the renovation of a house then putting it back into the market. The total amount used to buy and renovate the home is significantly lower than the house's price in the market for a good profit.
We buy ugly houses may acquire a home for as low as 50% of its market value, and they get a profit of up to 48%. Don't expect to get much from selling your house through this.
Selling your ugly house
Although you may view selling your house as posing in front of for-sale signs and picking out your favorite suit, the reality is that selling your house needs some serious time and money too.
Third-party house sellers are best left to do this because to sell your house alone, and you need to:
This has to be done before the house buying rush, often during winter or when no one is out there looking to visit for an open house. Statistically, most houses are sold or bought in early spring when the energy is high in the air.
Renovations include fixing any leaking taps or creaking doors, evenly painting surfaces or giving your house a new paint job, yard work which includes hedge and lawn trimming.
Open houses allow the clients to view the home as it may appear bigger or smaller in the pictures online. It also lets the buyers see all the reasons to buy or not buy your house.
Conducting house showings may boost your utility bills. You may end up spending twice as much on utility fees lighting up or air conditioning your home. Hospitality to potential customers is also quite handy by offering them a cup of tea or a snack.
You will probably have to vacate the house and take your pets, too, if any, so that the house can always be visitor-friendly at any given time.
Wait as your house sits in the market
This is a downside to house selling. It can be quite disheartening to have so many views as your house is fresh in the market, then all of a sudden, no one seems interested.
This may be primarily because it gets so many views yet stays in the market. This raises the eyebrows of the house buyers who will flag the house in their minds.
Advantages of we buy ugly houses
Now that we understand why many go for third-party house buyers, why choose we buy ugly houses over a realtor company?
Hiring a real estate agent is the traditional house buying process. The agent sells your house, gets a cut from it, probably a percentage of the final price put on the house, and the two of you part ways. However, this is different with we buy ugly houses.
1. Quick sale
Traditional house selling methods involve many back-and-forth processes. This involves renovations, inspection, house showcases, and bank loans from both parties.
If the seller wants quick money from selling the house, this is the option to go for. The house may be of no use to the seller, and the long process may be time-consuming for no end goal.
With we buy ugly houses, everything is done in the owner's comfort. The buyers work within the owner's time frame, and the owner gets to bargain for a fixed price and may even leave the trash behind, and the buyers will deal with them.
The bank may not want to lend the owner money for flipping the house due to its poor nature, and this is where we buy ugly houses comes in. You get quick cash and avoid endless loops of signatures to start the headache that may come with selling the house. And remember, you don't have to pay commission!
When the bank gives a house to flip and fix loans, it does so with the property as a liability. This means that if it's not sold, the bank claims the property.
Real estate agents also have to be paid apart from the other expenses like inspections and renovations. This dramatically reduces the final amount the house seller gets.
We buy ugly houses; it's a yes or no deal often completed in a few days. The owner only has to agree or disagree with the payment terms, and the deal is closed, or they can suggest a better deal.
The property is not at risk after a disagreement. There are no liabilities.