As iBuyers Struggle with Too Much Inventory, HomeVestors Franchisees
Continue Buying and Selling Houses Nationwide at Record Clip
DALLAS (November 2021) – Continuing a 25-year streak, the original and only We Buy Ugly Houses® company is purchasing and selling homes nationwide at a record pace, even as some iBuyers have struggled or stopped altogether. HomeVestors’® independently owned and operated franchises in 176 markets nationwide, who live and buy on Main Street, are still buying based on a proven model honed over a quarter century, even as some Wall Street backed buyers have hit “stop” after less than three years because they can’t move their inventory.
“We were one of the early pioneers in professional real estate investing back in 1996, and have helped lead this industry to the point where we bought almost 10,000 houses and were responsible for almost $1.7 billion in sales last year alone,” said David Hicks, CEO of HomeVestors. “Others have attempted to do what we have – from individuals to major Wall Street-backed firms – but they have not been able to duplicate our proven model of buying houses, renovating them and getting them back on the market as valuable real estate assets.”
National iBuyers base their online offers on algorithms while HomeVestors’ more than 1,150 franchises base theirs on personal visits to the house with the seller, cultivated through the company’s sophisticated lead generation and buying model. These property specialists are then the ones that take ownership of the home and rehab it, taking great care to make homes that will be loved for years to come and drive neighborhood improvement. Labor shortages have been cited by some for creating their glut of inventory, a problem We Buy Ugly Houses franchisees have not encountered since they are generally the ones on-site helping make over the homes themselves.
“This business isn’t just about buying houses, it’s about what you then do with the houses you buy, which is where we stand apart,” added Hicks. “The challenge for national iBuyers is that they can buy houses but cannot effectively scale fixing up and selling those houses. We Buy Ugly Houses® franchises don’t have that problem because they own the home’s complete lifecycle that is initially founded on a personal connection with the seller, the home, the neighborhood, and ultimately, the new owner. It’s a shame these iBuyers, having bought up so many houses in the midst of a historic housing shortage, are not getting these houses back on the market for desperate buyers.”
This is the second time HomeVestors® has seen iBuyers exit the market. In spring 2020 after COVID hit, iBuyers stopped buying, and many sellers saw offers rescinded as other options altogether dried up. We Buy Ugly Houses franchises pivoted to personal virtual consultations to keep buying, setting themselves up to subsequently also thrive through the real estate boom that followed.
“There is no way Wall Street can understand a local housing market on Main Street USA like a local HomeVestors franchisee, who has a vested interest in improving the community they live in,” Hicks added.
Since most of the houses HomeVestors franchisees purchase are smaller, older houses, they fill a real need for first time home buyers. Recognizing their latent potential and with a vested interest in their local communities, franchises then generally rehab and sell the homes or hold them as investment properties. Within an average of less than 120 days, We Buy Ugly Houses franchises reintroduce their many rehabbed homes to their local markets as desirable properties for new buyers that also help increase the value of surrounding homes
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About HomeVestors of America, Inc.
Dallas-based HomeVestors of America, Inc. is the largest professional house buying franchise in the U.S. with more than 110,000 houses bought since 1996. HomeVestors recruits, trains and supports its more than 1,150 independently owned and operated HomeVestors® franchisees that specialize in building businesses based on buying, rehabbing, selling, and holding residential properties. Most commonly known as the 'We Buy Ugly Houses®' company, HomeVestors strives to make a positive impact in each of its 176 markets. The company ranked on the 2021 Inc. 5000, has appeared for 12 consecutive years on the prestigious Franchise Business Review's 'Top Franchises”, for nine years on the annual Dallas 100, and ranked 94th on the 2020 Franchise Times Top 200 Franchise Chains by Worldwide Sales. HomeVestors has also been regularly recognized by Entrepreneur Magazine, which most recently ranked it 16th “Top Growth Franchise”, named it as one of the top 200 franchises of 2020, and placed it at number 36 on its annual Franchise 500. For more information, visit www.HomeVestors.com.
