The Ugly Truth Behind "We Buy Ugly Houses"

[Nevilledog]

https://www.propublica.org/article/ugly-truth-behind-we-buy-ugly-houses

Cory Evans was well-versed in the HomeVestors of America playbook when he arrived at a suburban Los Angeles home on Nov. 4, 2016. His franchise with the “We Buy Ugly Houses” company had executed more than 50 deals in the preceding two years. Patriot Holdings would soon become one of the company’s most successful franchises by following HomeVestors’ strategy of finding homeowners in desperate situations, then convincing them to sell quickly.

The homeowner, Corrine Casanova, had bought the three-bedroom Baldwin Park bungalow with her husband in 1961 and now owned it outright. After raising three children there, she was days away from leaving it for an assisted living facility and had called the number on a HomeVestors ad.

“I was wondering if I could get an estimate of the value of my home,” she told the woman who answered the phone. “My husband’s gone, so it’s just me now.”

Evans, who ran the business with three of his brothers, had developed a reputation among other franchisees in the area as a “hard closer.” Casanova’s house was paid off, giving Evans room to go low with his offer because there wasn’t a mortgage to settle. He calculated the profit he wanted to make and presented Casanova with a 10-page purchase agreement during the short visit to her house.

*snip*

[Scrivener7]

1. As soon as I saw "Patriot Holdings" I knew it was going to be some cruel scam.

How sad that
a) they are so predictable, and
b) they have so degenerated the word "patriot."

[wryter2000]

2. I sold to We Buy Ugly House

I still had a substantial mortgage. My very old home was in terrible disrepair, and I didn't have the money or the fortitude to fix it. I still could have sold it in the usual manner, but I simply couldn't stomach the idea. I couldn't stand huge numbers of people going through it and seeing what state it was in. I just wanted out and to get into a small apartment.

The woman who bought it might have high-balled the repairs it would need. They seemed within reason to me. She might have low-balled the value, but that, too, seemed within reason. The mortgage got paid off, I got a hefty payment above that (not huge, but a very nice nest egg), and I moved into a lovely, tiny apartment with almost no trouble at all.

I no doubt could have made more money, but my sanity and happiness was worth something.

[okaawhatever]

6. The article mentions it's a franchise so you probably got an honest, reputable

franchisee. I’m so glad you did. I think the real lesson in the article is not to do business with anyone who uses Patriot in their business name.

[wryter2000]

7. I think you're right

She told me she originally got up to walk out of the presentation because she didn't like what they were saying, but they talked her back in. By the time she found me she was regional manager or something. I definitely felt good about the process and the money I got.

I distrust anything labeled patriot these days.

[Zeitghost]

3. Selling a fixer upper is hard

Most buyers can't finance something that won't pass an inspection which severely limits your options. Cash buyers always have an advantage and the more work a place needs, the bigger that advantage is.

[maxrandb]

4. I guess it works for some folks, but you're leaving money on the table for speed and convenience

Thought of trying the cash sale when my mom had to go to memory care, but they were offering like 2/3RDs what it was worth.

Went with a local auction instead. I could set the minimum offer we would accept, and it was quick, easy, and we got a better price.

[Pinback]

5. Every 60+ person I know who lives in an old house

gets 10 or more calls, texts, or handwritten notes a week from real estate speculators, obviously hoping they’re desperate enough to sell at a predatory discount. It’s disgusting. I’ve pleaded with my wife, if I go first, NEVER sell to any of these fuckheads.

[wryter2000]

8. I sold the house over a year ago, and I still get those calls

I would never deal with anyone who does business like that. I once found a flyer to get a new mortgage under my windshield wiper. I'm going to get a mortgage from someone who has to advertise that way? Nuh-huh.

[dalton99a]

9. Kick