My Mortgage Broker called me with a qualified buyer who needed a house. I did not have anything in the area they wanted, so I figured I would show them few houses and collect agent fee. That way I make quick money, and keep my mortgage broker excited.
Anyway, their price range was under $110k. We went to few houses, then ran into this absolutely beautiful house. I am familiar with the area, and I can tell they pretty much redone everything and reconfigured the bathrooms. Oak kitchen cabinets, stainless appliances, expensive ceramic tile, high end carpet, high end ceiling fans, fully remodelled bathrooms with high end vanities. The house is listed for $106,500. They even landscaped the house beyond the neighborhood’s.
I must say, if I had that house, I would have sold it for $130k easy… But they opted to keep the price within market range.
I am very impressed with the level of rehab they have done, and I have taken some ideas from that house to carry in my future rehabs.
I think I’ve seen signs for Homevestors in my area. They sound like a big group, which might mean they have a system down. That system might include unloading property fast, so they price competitively within their market?
I think the poster was just making a stmt on Homevestors and maybe looking for some feed back on others experinences.
When my Grandfather died, my father wanted to call Homevestors. My Grandparents lived in their home for over 50 years. So everything was outdated, the electrical and plumbing were not to code, and there was a ton of work needed. The nice part about Homevestors is you just pull out what you want and leave the rest. To me it would work good for people who live out of state or are just too old to deal with the whole process.
There was no question just a statement like Range said.
The rehab homevestors did on this house gave it a WOW factor. I’ve fixed up houses before and sold them at market value, but some of them took a while to move. When I walked into their done work, I was literarly wowed by their rehab job.
Now granted, someone like homevestors have the financial backing and ability to get both material and labor done at lower cost, not to mention the marketing budget to be very selective to pick the low hanging fruit only, but that did not drive them to do an Ok job and save the cost. They actually went with the WOW factor.
Homevestors is actually a franchise, so each office is independently owned…So there’s no national financial backing…It’s all dependent upon each owner’s individual finances…Each franchisee would contribute a % or a flat fee to the national advertising…Just like Subway has tons of national advertisng, but that’s paid for by a 3 or 4% advertising fee of gross sales…But each restaurant is independently owed and some owners end up going out of business…
So I don’t see how their material/labor would be able to be done at a lower cost just based on them being a national franchisor…
Most franchises are locally operated. Using the name alone can most likely guarantee a large commercial line of credit from many banks, which ensures they have plenty of cash to work with. Besides, anyone going to invest $100k into a franchise would most likely have enough cash to invest anyway.
The local franchise has 52 billboards in town ranging in price from $500/month to $2000/month each, an $840/month newspaper ad running daily, not to mention the birddogs, wholesalers…etc they have. I know because I checked on their operations through sales reps…etc.
Now, someone who is investing that much would have the capital to invest in rehabs, have their own crew or discount crews, and have the purchase volume to get a nice discount to have an advantage.
Also something to note is many of the advertising materials are prepackaged and ready to be used by the franchisee. From billboard copy to professionally produced commericals they have it all prepped and ready to be used when the franchisee is ready to spend the money on advertising. One thing I found interesting is that they allow multiple franchises in the same metro area and the franchisees pool marketing money and share ads, they don’t try to cut each other’s throats.