How Much Can You Really Expect from “We Buy Ugly Houses”

We Buy Ugly Houses is a cash home buyer that offers discounted offers on houses, typically around 50%-70% of the home’s fair market value (FMV). Some customers claim WBUH only offers 50% of what they could sell for on the open market. WBUH buys homes as-is, makes repairs, and resells them. They can make an offer in 24-48 hours and close in as little as three weeks.

Key Takeaways

  • WBUH offers cash offers up to 70% of fair market value
  • Buys homes as-is, handles repairs, and resells the properties
  • Offers can be made within 1-2 days
  • Closing can occur in as little as three weeks
  • Some customers report offers as low as 50% of market value

What is We Buy Ugly Houses 

We Buy Ugly Houses is a national franchise that specializes in buying houses quickly and in any condition. They target situations where a traditional sale might not be ideal, such as inherited property, houses needing repairs, or when a fast sale is crucial. They primarily appeal to sellers who want convenience over getting the absolute top dollar for their house. Their process involves a free consultation, a cash offer typically made on the spot, and a fast closing on the seller’s timeline.

Also read: The Hidden Downsides: When Sellers Pay Closing Costs

How Do We Buy Ugly Houses work

The process of selling a home to We Buy Ugly Houses is straightforward. Homeowners can contact the company through their website or by calling their toll-free number. A local franchise owner will then schedule a visit to the property to assess its condition and make a cash offer. If the homeowner accepts the offer, WBUH will handle all the paperwork and close the sale in as little as three weeks.

The process of selling your home to We Buy Ugly Houses involves:

  • Contact and Evaluation
  • Cash Offer
  • Closing the Deal

WBUH can make an initial cash offer within 24-48 hours in most cases. They also promise to close within 3 weeks or less once an offer is accepted. This accelerated timeline allows struggling homeowners to sell quickly.

Do We Buy Ugly Houses Legit?

Yes, WBUH is a legitimate home buying company. They are part of Linky Properties LLC based in Columbia, SC.

While some “We Buy Houses” companies are shady, WBUH has an A+ rating from the Better Business Bureau along with predominantly positive online reviews. Complaints from past sellers typically revolve around lowball offers rather than fraud.

Also read: FHA Appraisal Process: How Long Will It Take?

We Buy Ugly Houses Coverage

We Buy Ugly Houses operates in over 1,100 franchises spread across 47 states. The company has a presence in most major cities and metropolitan areas, as well as many smaller towns and rural communities. Homeowners can check the WBUH website to see if the company operates in their area.

How Much Do We Buy Ugly Houses pay?

The big question is—how much does WBUH actually pay compared to a home’s fair market value?

We Buy Ugly Houses typically pays between 50% to 70% of a home’s fair market value (FMV). However, some customer reviews complain their WBUH offers came closer to 50%.

So for a home worth $200,000, you might expect around $100k – $140k. But every property and situation is different when it comes to their purchase offers.

What Percentage of Market Value Can You Expect?

While WBUH claims to pay up to 70% of FMV, here is a realistic breakdown of the percentage they may offer:

  • 50% of FMV – For homes in extremely poor condition needing excessive repairs
  • 55-65% of FMV – For livable homes with some clear flaws and repairs needed
  • 65-70% of FMV – For minor cosmetic issues only

These ranges account for the maximum discounts WBUH tries to negotiate due to their business model.

How We Buy Ugly Houses Calculates Payment

We Buy Ugly Houses prioritizes speed and convenience for sellers over getting the highest possible price. Here’s how they calculate their offers:

  • Estimated After-Repair Value (ARV): They consider similar homes in the area that have sold recently and estimate how much your house could sell for after repairs.
  • Repair Costs: They factor in the cost of fixing any issues with the house to get it market-ready.
  • Holding Costs: They estimate expenses like property taxes, insurance, and utilities while they own the property.
  • Profit Margin: They build in their profit on the sale.

Offer Range:  Generally, We Buy Ugly Houses offers somewhere between 50% and 70% of the estimated after-repair value (ARV) minus the repair and holding costs  This means you’ll get a lower price than selling on the traditional market, but you’ll also close the deal quickly and avoid the hassle of repairs and showings.

Also read: Flipping Houses in California: The Ultimate Guide

Factors Affecting Payment

Several factors influence how much WBUH will offer including:

  • Property condition – Major repairs like structural damage, mold, or foundation issues can warrant offers near 50% of FMV. Minor cosmetic fixes lead to higher offers.
  • Upgrades needed – Outdated kitchens, bathrooms, flooring, etc that buyers dislike can reduce offers. Updates increase ARV.
  • Location & market factors – Hot real estate markets mean higher ARV while declining areas get lower offers.
  • Motivated sellers – Owners who really need/want to sell fast typically accept the biggest discounts.

We Buy Ugly Houses Pros & Cons

Pros

  • Fast all-cash offers and close in weeks
  • Sell homes as-is no repairs required
  • No realtor commissions or fees
  • Avoid foreclosure by selling to them

Cons

  • Offers usually 50-70% under fair market value
  • Lose potential appreciation if market rebounds
  • Tax implications of selling below cost basis

Who is We Buying Ugly Houses Best For?

Homeowners most likely to get reasonable value from We Buy Ugly Houses include:

  • Inherited an unwanted property – Sell quickly without needing repairs
  • Facing foreclosure – Avoid foreclosure black mark by selling to them
  • Situations requiring a fast sale – Divorce, relocation, job loss etc.
  • Little or no equity – Escape underwater mortgages
  • Limited savings for repairs – Avoid fix-up costs if selling traditionally

Alternatives to We Buy Ugly Houses

Those wanting to maximize sale value have alternatives like:

  • Traditional real estate agents
  • FSBO (For Sale by Owner)
  • Owner financing sales
  • Home equity loans for fixing up property before listing

However, these options require more time, repairs, carrying costs, and uncertainty over actually selling.

We Buy Ugly Houses Scams

While WBUH itself is reputable, imitation “We Buy Houses” companies may scam sellers. Be wary of too good to be true offers, high-pressure tactics, requests for upfront fees, or shady inspection practices.

Thoroughly research any such buyer and consult a real estate attorney before finalizing a sale. Get documentation for proof of funds and sales terms in writing first.

Tips for Maximising Payment

If selling to WBUH, aim for the highest possible offer with these tips:

  • Get multiple bids – Contact several “We Buy” companies for range of offers
  • Price competitively upfront – Research recent comps for pricing leverage
  • Highlight renovations done – Cosmetic upgrades increase ARV perception
  • Downplay issues – Strategically point out only unavoidable flaws
  • Remain firm on expectations – Don’t easily accept extreme lowballs

Frequently Asked Questions (FAQ)

How much less than market value does We Buy Ugly Houses pay?

We Buy Ugly Houses typically pay between 50-70% under the fair market value of a home. However, offers can come in as low as 50% for properties requiring extensive repairs.

What factors determine how much WBUH will offer for my home?

The offer amount depends on the condition of your home, estimated repair costs, expected after repair value, location, market factors, and how motivated you are to sell quickly.

I owe more on my mortgage than what We Buy Ugly Houses offered. Can I still sell to them?

Yes, you can sell even if you owe more than their offer amount. The sale proceeds would help pay down your mortgage, then you’d either pay the difference or negotiate with the lender if the shortfall is forgiven.

What are alternatives if I’m not satisfied with my We Buy Ugly Houses offer?

Alternatives include listing with a real estate agent, trying a For Sale by Owner, seeking owner financing deals, or taking out a home equity loan to fix up the property before listing. Each option has tradeoffs to consider.

Is there any way to increase the offer amount from We Buy Ugly Houses?

Tips to potentially get a higher offer include getting quotes from multiple home buying companies, pricing competitively based on recent comps, highlighting any renovations already done, downplaying issues, and negotiating firmly.

Conclusion

We Buy Ugly Houses purchases distressed property at around 50-70% under fair market value. Actual offers account for required repairs, ARV, seller motivation, market factors, and negotiation strategies. Homeowners needing a fast, hassle-free cash sale may find WBUH useful despite heavily discounted pricing.

Jean Folger

Jean Folger brings over 15 years of expertise as a financial writer, specializing in areas such as real estate, investment, active trading, retirement planning, and expatriate living. She is also the co-founder of PowerZone Trading, a firm established in 2004 that offers programming, consulting, and strategy development services to active traders and investors.

Related Articles