Who Wants to Buy an Ugly House?

By M Siddique

Gudrun and I were picking up some supplies for a class in Denver. It was time for lunch, and as we walked down the street, there is a big yellow sign saying: "We Buy Ugly Houses". In smaller font, it said, "Independently owned, and operated". Of course, the last phrase means its franchise. To me, that means if you like what "We Buy Ugly Houses" does for you, complement the franchisor. If you do not like it, blame the franchisee.

Walking back from lunch, Gudrun said to me: "Did you see that sign, "We Buy Ugly Houses?" By being completely honest, I missed an opportunity to improve harmony by simply answering, "If you are referring to the sign, "We Buy Ugly Houses", yes. I did." I could have elevated harmony without lying, by saying: "Oh! Which one? The big yellow sign, that says, "We Buy Ugly Houses"? However, as Gudrun may readily point out, Tcat is digressing again. So I'll shut up and get to the point.

It turns out that a Dallas-based company by the name of HomeVestors of America Inc. owns the franchise "We Buy Ugly Houses". Hand over 46 kilo bucks (USD) and besides an exclusive territory, the franchisee gets a personal trainer, several weeks of training and proprietary software to analyze a purchase offer and the cost of renovation.

Our research quickly revealed that the average purchase price a franchisee pays for a home is less than a hundred grand. From this point, the franchisee fixes the joint up then either rents it, sells it, or flips it.

The endgame is to buy the place for $.65 on the dollar.
It turns out that an ugly house does not refer solely to its appearance. (Although it certainly can look ugly! In addition, needs rehabbing) A quick analysis of the situation reveals the old axiom, "beauty is in the eye of the beholder."

Quickly, both of us quickly saw how a very nice looking house could in fact be, an ugly house. Consider the example of a house that now has one or several owners that landed in their laps due to an inheritance. Considering the fact that the owner(s) probably became so via the death(s) of one or more loved one(s) it becomes pretty easy to see that the situation surrounding the house is in fact ugly. This does not mean that the property itself is necessarily, ugly.

Tcat can personally attest to the situation. When his father died, none of the children were thinking about getting top dollar for his home. All the siblings just wanted to close the door quickly, on this sad chapter of life. A very nice lady making a living as a registered nurse got a deal. And the family moved on. Certainly, the home was not ugly. However, for the kids' our dad's home in that specific situation the house certainly was "ugly".

When we were chatting about this, Gudrun pointed out that it may often be the case where an elderly person has let place slide, just a bit. Perhaps the slide is not to the degree of that epic novel, Withering Heights.

And with the graying of the baby boomers, the US market may see quite an increase in the number of "ugly houses" for sale. Given this, $.65 on the dollar might not be such a bad deal for both the buyer and the seller. It's dark, stuffy and hot inside this little box of electronics. Not only that, we cannot hear you when you talk to us. Send either of us an e-mail to tell us what topics you would like to hear about.

Siddique is real estate investor for over 22 years and President of http://www.butterflylister.com/ - Download Free How to sell your Home for Full Price in any market.
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