What you are actually dealing with
We Buy Ugly Houses is the brand name. The company behind it is HomeVestors of America, a franchisor out of Dallas that has been around since 1996 and licenses the name to about 1,100 independently owned franchises across 47 states. The person who came to your house owns or works for one of those franchises. They fund the purchase with their own cash or short-term lending, they cover standard closing costs, and they charge you no fee.
That setup explains most of what sellers run into. A franchisee who has worked your area for years will usually give you a sharper number than a newer one who has to protect their margin. Offers generally land at 50 to 70 percent of after-repair value, and you only ever see the one.
| Alternative | How it works | Cost to you | Best when |
|---|---|---|---|
| Local independent investors | Buy direct and price off the repairs | No fee, priced into the offer | You want two or three numbers on the same house |
| Sundae | Investors bid against each other | No fee to you | Sundae operates in your metro |
| HomeLight Simple Sale | Passes your house to one investor in its network | Nothing | Few investors work your area |
| List it as-is with an agent | Open market, sold in current condition | Commission | The house can still qualify for a buyer's loan |
| Opendoor or Offerpad | Online offer, then an inspection | 5% at Opendoor, typically 6 to 10% at Offerpad | The house is in better shape than the word ugly suggests |
A second and third offer on your own house will tell you more than any chart.
Local independent investors: the closest thing to a second franchise offer
A local investor runs the same math a HomeVestors franchisee does. They figure what the house sells for fixed up, back out the repairs, the holding and closing costs, and their margin, and what is left is the offer. The difference is you can call three of them. On a house that needs work, expect 65 to 80 percent of after-repair value, which sits above the usual franchise range.
I have my own numbers on this. In my pipeline, 45 deals had a full after-repair value on file. 22 of those offers came in under 50 percent of that value, on houses that needed heavy work, and 6 came in at 80 percent or more, on houses that were close to move-in ready. Condition drove the whole spread, so judge any offer against what your house actually needs.
With a local buyer the vetting is on you. Confirm the company is registered with your secretary of state, have them show proof of funds, find out how many deals they closed in the past year, and insist on a title company you chose.
| Buyer | Typical range of after-repair value | Offer on a $200,000 after-repair value |
|---|---|---|
| We Buy Ugly Houses franchise | 50 to 70% | $100,000 to $140,000 |
| Local independent investor | 65 to 80% | $130,000 to $160,000 |
Illustration only. These are typical ranges, and the repairs your house needs move the real number. The ranges overlap, which is the reason to get more than one offer.
Sundae: several investors bidding on one house
Sundae puts your house in front of a pool of investors who bid on it, and you get several offers back within a few days at no cost to you. For a house in rough shape, that puts the same kind of buyer in a spot where they have to outbid each other.
Coverage is the limit. Sundae is in about 25 markets, concentrated on the West Coast, in Texas, and in a handful of East Coast metros. Most Midwest sellers will find their city is not on the list.
HomeLight Simple Sale: one more number in a thin market
HomeLight Simple Sale matches your house to an investor in its network and sends back a single cash offer, free to you. It has the same blind spot as the franchise offer, since you still only see one number.
Where it earns a request is a small town or a rural county where you cannot find a second local investor to call. One more number beats none.
Listing it as-is: an option more often than sellers think
Ugly covers a lot of ground. A house with a dated kitchen, worn carpet, and an old furnace is ugly to a retail buyer and can still qualify for a loan, and a house that qualifies for a loan can go on the open market as-is. You pay a commission and you wait, and in exchange the whole market sees it instead of one investor.
If the roof leaks, the foundation has moved, or the house would not get past a lender's appraisal, this option mostly goes away and a cash buyer is the realistic path.
Opendoor and Offerpad: only if the house is not really ugly
Both are built for homes generally built after 1960 that a buyer could finance as they sit, so a true fixer gets declined or repriced after the inspection. If your house is cleaner than the brand name suggests, they are worth a request. Opendoor charges a flat 5 percent in roughly 50 markets, and Offerpad typically charges 6 to 10 percent in around 25 Sun Belt metros.
How to check the franchise offer you already have
Ask the franchisee what they think the house is worth fixed up and what they are budgeting for repairs. A buyer doing honest math will tell you both, and once you have them you can see what share of the fixed-up value they offered.
Look up the specific franchise, meaning the local company name on the contract, with the Better Business Bureau. The national brand has had BBB complaints and lawsuits over the years, often tied to individual franchisees, so the record that matters is the one for the office you are dealing with.
Ask in writing whether they will close on the house themselves or might assign the contract to another buyer. 23 states now have a wholesaling law, and 7 of them give sellers a set number of days to cancel, from 2 business days in Oklahoma to 30 days in Pennsylvania. Our state-by-state wholesaling law research shows what your state requires.
When We Buy Ugly Houses is the right call
With franchises in 47 states, HomeVestors is often the buyer that actually operates where your house is. In a market with no Sundae coverage and no second local investor to call, a franchise offer that closes in 7 to 30 days with no fee is a real option. Take it after you have tried to get one more number, so you know what you are saying yes to.