There are many reasons that individuals or companies may purchase ugly houses, but the common thread among them is a sense of opportunity. Some people and businesses buy these homes because they think that the price of the property is lower than its actual value, or because they believe that it can be repurposed after renovations.
Home flippers are a type of real estate investor that purchases and sells properties at a profit. They often purchase distressed properties or “ugly” houses, which are not in good condition. Some of these homes are beyond repair, while others need only minor repairs to be livable. A buyer that can afford to purchase and renovate these homes at a low price can make a significant profit on the sale, especially if they can find a home in a desirable location.
Ugly houses are also often purchased by investors who want to use them as film locations. For example, the haunted house that served as the exterior of the movie Psycho was a deteriorating South Pasadena property that was bought by a local company to serve as the film’s setting. Its worn-out white paint and boarded windows were just what the film needed to create its creepy atmosphere.
A number of companies, known as ‘We Buy Ugly Houses ‘ franchises, offer to purchase properties in their current state, without any repairs or renovations being made. This can save homeowners time and money that would otherwise be spent on a traditional home sale. The companies also usually handle all the necessary paperwork and close the deal quickly, reducing the overall stress of selling a home.
Many of these ‘buy ugly houses’ franchises operate in the United States. Some are independent, while others are part of larger national and international chains. These companies typically pay cash for properties and can close the transaction within a few weeks. This is in contrast to the traditional sales process, which can take months.
One of the most popular ugly houses-buying franchises is We Buy Ugly Houses, which operates in more than 100 markets nationwide. The company’s founder, Dan D’Angelo, began his career as a real estate agent and developed franchise systems that could be taught to others. The franchise was founded in 1989 and remains a profitable business today.
Most of the homes that We Buy Ugly Houses purchases are inherited by family members, those in the middle of a divorce, or homeowners facing financial hardship. The company’s CEO, David Hicks, says that most of the homes purchased by We Buy Ugly Houses are less than 1,400 square feet and were built before 1980. Hicks explains that the companies’ clients have various circumstances that lead them to prioritize selling their homes quickly.
While these ‘buy ugly houses’ companies may be able to offer you a quick sale, you should consider other options before you decide to work with them. For instance, a Realtor can help you determine what the property is worth and how much it will cost to make needed repairs. This will give you a better idea of the minimum offer you should accept from these companies.