Compare HomeVestors and Home Bay

For Sellers

Cash Offers
30%
Home Equity
HomeVestors does not provide real estate services to home sellers. Instead, local franchisees buy homes directly, repair and resell or rent them to tenants. Typically an offer equal to 70% of home value is expected from this type of sale after any cost of the repairs and resale.

For Sellers

Listing Rate
$2,500
Flat Fee
Minimum commissions and other terms may apply. Buyer's Agent Commission (2.5%-3%) is not included, but you may be able to negotiate this as well. Home Bay flat fee rate modestly increases relative to sale price according to the company’s fee schedule.

For Buyers

Not Applicable
0
No Rates
HomeVestors does not provide real estate services to home buyers. Instead, local franchisees buy homes directly, repair and resell or rent them to tenants.

For Buyers

Buyer’s Savings
50%
Commission Rebate
When Home Bay represents home buyers, it contributes 50% of its Buyer's Agent Commission (2.5%-3%) to the buyer as a way to financially compete for a buyer’s business. Home buyers do not pay any taxes on the amount, the refund amount is always tax-free.
Question: What is the difference between HomeVestors and Home Bay?
Answer: HomeVestors is a direct home cash buyer that buys select homes off-market with cash offers and resells them at a profit to homebuyers while Home Bay is a full-service real estate agent that offers savings to homebuyers and home sellers
Compare HomeVestors and Home Bay for home buying and selling. HomeOpenly is an impartial and an open resource focused on trending real estate services, portals and start-ups.

First published: 17 February 2019
Last updated: 25 April 2021

Buying and Selling with HomeVestors

HomeVestors (also known as We Buy Ugly Houses) is a franchise network where each individual local franchisee considers the condition of a home and makes an offer to pay cash for the property. In determining the offer, each franchisee discounts from the estimated retail value after it’s fully renovated.

HomeVestors Pricing

HomeVestors franchisees make money with a difference between buying and selling each home. Typically an offer equal to 70% of home value is expected from this type of sale after any cost of the repairs and resale.

Listing Services

  • This Service Does Not Represent Sellers

Buyer's Agent Services

  • This Service Does Not Represent Buyers

HomeVestors Editor's Review:

HomeVestors franchisee will buy a home at a price that is below market value due to necessary repairs, renovation, and other factors. After the franchisee buys the home, it renovates and resells it for a profit or rents it out to qualified tenants.

With the low offer price, comes a convenience of an all-cash closing when selling a home. HomeVestors franchisee typically closes a home in 30 days of receiving cash offer.

Typically each franchisee uses the following factors when determining the offer: existing condition of the home including repairs needed, time it will take to finish needed repairs, value of a home compared to other comparable homes in the area, real estate commission required to resell, costs associated with maintaining a home during repairs, including taxes, payments, insurance, utilities and homeowner dues.

The main disadvantage of using HomeVestors is high losses in homeowners' equity. HomeVestors is a "heavy" model, ready to buy homes in all-cash transactions.

As any real estate investor, HomeVestors franchisee is susceptible to losing money in any given transaction. This model is prone to a number of risk factors, high operational costs and a continued need for higher-than-average Return on Investment (ROI) with each flip.

HomeVestors franchisee is not legally bound to represent consumers, its main legal obligation is to its stakeholders. Moreover, because most homes in the United States are financed, homeowners own only partial net equity in their home.

Banks receive the same amount of the remaining mortgage sum regardless of how any given home is sold, or how much of homeowners' net equity is lost in the transaction with HomeVestors.

Today, there are a number of highly qualified real estate agents who offer competitive listing rates and flat fee listings across the United States. Unless a situation absolutely requires a quick sale, HomeOpenly recommends that consumers first consider using a licensed real estate agent working on competitive terms to properly list their homes on the open market before turning to HomeVestors option.

Guide References for HomeVestors:

Selling a home using an iBuyer

Where does HomeVestors operate?

HomeVestors currently operates in select areas across United States.

Buying and Selling with Home Bay

Home Bay is a multi-state savings broker, offers consumers listing savings and buyer's refunds in select areas across California, Florida, Georgia, Illinois, Texas, and Colorado.

Home Bay Pricing

Offers savings to sellers (2,500 USD base flat listing fee) and buyers (50% of the Buyer’s Agent Commission).

It should be noted that Home Bay flat fee rates do modestly increase relative to the home's sale price according to the company’s fee schedule, so the final listing rate flat rate will vary.

Listing Services

  • MLS Listing
  • Zillow, Trulia, etc. Listing
  • Accept and Deliver All Offers and Counteroffers
  • Hold Open Houses
  • Professional Photography
  • Professional Floor Plans
  • Yard Signage Installation
  • Spare Key Lock-box Installation
  • Schedule Inspection Services
  • Schedule Private Showings
  • Closing Duties

Buyer's Agent Services

  • Find the Property
  • Accept and Deliver All Offers and Counteroffers
  • Recommend Other Professionals
  • Attend Inspection Services
  • Schedule Private Showings
  • Negotiate Needed Repairs
  • Closing Duties

Home Bay Editor's Review:

Home Bay is a consumer-focused flat fee real estate broker. As a listing agent, Home Bay works with a seller to prepare homes for listing, including taking professional photos, pricing home, and publishing marketing materials.

Home Bay lists all homes on the local MLS as well as typical MLS Aggregators. Home Bay maintains a well-designed online platform that allows sellers to communicate with all parties involved in a sale.

As a buyer's agent, Home Bay works with buyers to find a home, schedule inspections, negotiate repairs and finalize the purchase.

Home Bay offers overall great value to consumers looking to buy or sell a home.

Where does Home Bay operate?

Home Bay currently operates in select areas across California, Florida, Georgia, Illinois, Texas, and Colorado..