Selling a House
Closing Costs for a Seller
If you’re selling, or thinking about selling your home, you might be wondering - what are the closing costs for a seller and how can I reduce them?
The Basics of Selling with HomeVestors
Before selling to HomeVestors, consider how much HomeVestors pays for houses, along with other factors of selling to the investor company.
Madison Clifton
Feb 14, 2020
HomeVestors is a home flipping investor company that is also recognized by the name “We Buy Ugly Houses.” The company has franchises in 33 states, and has become a popular outlet for selling homes. This unconventional process is a great contrast to the traditional real estate process, but has been an amazing opportunity for many people. When seriously considering selling to HomeVestors it is best to conduct some research so you know exactly what to expect. You probably have many questions such as “How does the selling process work?” or “How much does HomeVestors pay for houses?” Well we have the answers to those and a few others. So hopefully you can determine if selling to HomeVestors is the right decision for you.
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The Process
The process overall is pretty simple and straightforward. In reality there are only five steps, and the entire process can be wrapped up pretty quickly. The company advertises and prides itself on how quickly they are able to close a sale, and get you your money. Many reviews are also able to uphold that claim. If you decide to go with this streamlined route you can expect the process to go as follows:
- You ask them to make an offer on your home. To do this you are able to call the company directly, or submit a form on their website.
- HomeVestors sends an appraiser to inspect and determine the value of your home. This is a free appraisal of no cost to you.
- You receive a cash offer on your home. The franchises of this business pay cash so there is no waiting around for mortgage approvals.
- You accept, or decline the offer that is made.
- If you accept the offer, HomeVestors will pay any typical closing costs on the home.
Selling your home through the traditional method of using a real estate agent can take months. Not to mention you must figure out your finances, ensure the house is presentable, and meets certain inspection standards when selling through the traditional method. This streamlined process is great for any individuals who needs to move on from their property very quickly, or do not want to spend excessive time and money making repairs.
How They Define an “Ugly House”
When HomeVestors, or We Buy Ugly Houses, uses the term “ugly house” they are not only referring to outwardly ugly homes. The company promotes the fact that they will buy homes for an extensive number of reasons including:
- Structural issues
- Facing foreclosure
- Undesirable neighborhoods
- The death of a loved one
- Relocation or job transfer
- Troublesome mortgage terms
- Simply an ugly home
- Water damage, termites, roof damage, neglected over time
As you can see there is a wide variety of reasons this company will buy your home, so do not be concerned that your home may be in too bad of a condition to sell. You may not get an outstanding offer if your home will need costly repairs to make it sellable on the market, but at least you will not have to deal with those costs yourself.
How Much Does HomeVestors Pay for Houses?
Answering this question may be a little more complicated than you would think. There is not a set formula that HomeVestors uses where you could easily figure out the offer they would make on your home. It is entirely based upon the in-person appraisal and inspection of your home that the company conducts. These factors are considered to determine the cash offer you will receive once the appraisal is of your home is completed:
- Current condition of your property
- Renovations required and the costs to make those renovations or repairs
- Time needed to make required improvements
- Cost to keep the property while it is being renovated or repaired
- Retail value once renovations are completed
- Real estate commissions required to sell the home once it is bought from you
When evaluating how much Homevestors pays for houses, remember that HomeVestors is an investor company and has the sole goal of making a profit. Therefore when considering that fact, along with all of the factors listed above, it is very unlikely that the offer HomeVestors presents you with will be anywhere near the market value of your home. Therefore unless you are desperate to get the property off your hands, or do not believe it will sell on the open market, selling to HomeVestors is not the best decision you could make. You are more likely to get an offer that is accurate to the actual value of your home if you utilize the traditional home selling route and hire a real estate agent.
Pros of Selling to HomeVestors
You only have to make one decision during the entire process.
The only decision you are faced with during the entire selling process is to either sell, or not sell. You will simply receive a cash offer on your home after an inspection by Homevestors is conducted, and then you will decide if you wish to accept or decline that offer.
You will be able to sell your home in any condition that it is in.
When you finally decide it is time to sell your home you will learn that there are quite a few things things you must do first in order to prepare it for potential buyers. There are inspections you must get, repairs necessary to make, and even cosmetic upgrades that are needed if you intend to get a competitive price for your home. All of these things can add up on your to-do list rather quickly, and easily become much more time and money consuming than you would like. So an option such as selling to HomeVestors is a great alternative to making all the necessary changes your home may require to be sellable on the open market.
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Cons of Selling to HomeVestors
You will most likely make less than you would working with a real estate agent.
Take a moment to consider how much HomeVestors pays for houses. Investor companies such as HomeVestors are buying your home for one reason – to make money off of it. Therefore you will receive an offer on your home that gives HomeVestors plenty of room to make a substantial profit from it. Whereas when you work with a real estate agent they are heavily incentivized to get you the best deal possible since they are working for a commission. The more money you get for your home, the more money they make. Therefore if a realtor believes they can sell your home, it is essentially guaranteed they will make you more money than selling to HomeVestors would.
You do not have an opportunity to improve the selling price.
When selling to HomeVestors you are not able to negotiate the selling price. If you believe your home is worth more than they are offering, your only option is to decline the offer. You are also not able to make any improvements that would increase the selling price. Many sellers are able to make improvements to their property on a budget, and then profit from them exponentially. By selling to HomeVestors, you forfeit that opportunity.