We Buy Ugly Houses: The Franchise That Pays 50-70 Cents on the Dollar
ProPublica investigated HomeVestors. They found franchisees targeting elderly and vulnerable sellers, using deception and aggressive tactics. The CEO resigned. Here's what they found.
You've seen the billboards. The caveman mascot holding a bag of cash. "We Buy Ugly Houses" plastered on every highway in America.
HomeVestors of America — the company behind the slogan — calls itself the "largest home buyer in the United States." With over 1,100 franchises in 48 states, they've built an empire on one simple premise: buy houses cheap, flip them for profit.
But a ProPublica investigation revealed something darker behind the friendly caveman.
What ProPublica Found
In 2023, ProPublica published a year-long investigation into HomeVestors. Based on court documents, property records, company training materials, and interviews with 48 former franchise owners and dozens of homeowners, they found:
HomeVestors franchisees used deception and targeted the elderly, infirm, and those so close to poverty that they feared homelessness would be a consequence of selling.
— ProPublica, "The Ugly Truth Behind 'We Buy Ugly Houses'"
The investigation found franchisees who:
The Cases
The Math
HomeVestors franchisees are taught to follow the "70% rule" — never pay more than 70% of a home's after-repair value, minus repair costs. In practice, this often means sellers receive 50-70% of what their home is actually worth.
And that's assuming they're being generous. The ProPublica investigation found cases where sellers received as little as $10,000 for homes that resold for $55,000 — an 82% discount.
The Fallout
After ProPublica's investigation went public:
They have scoured every corner of the internet. They've done, you know, good reporting, I would say.
— Bayview Asset Management executive, on ProPublica's investigation (from internal HomeVestors meeting recording obtained by ProPublica)
The Training
ProPublica obtained HomeVestors training materials. Franchisees are taught to:
Treat every customer like they're your 85-year-old grandma who's never done a real estate deal.
— HomeVestors training materials, per ProPublica
But the investigation found the reality was often the opposite — franchisees using that vulnerability to pressure quick sales at rock-bottom prices.
They're also taught to "find the pain" — identify what's making someone desperate to sell, then use it to close the deal.
What We Do Differently
*HomeVestors added the 3-day window after the ProPublica investigation. Before that, franchisees often used "title clouding" to make cancellation nearly impossible.
We Built the Opposite
Published methodology. Open-source code. We show you every path — even when we're not the best one. Because transparency isn't a policy you add after you get caught.
See Our Transparency Pledge →The Bottom Line
Not every HomeVestors franchisee is predatory. Many sellers have had positive experiences. The company has made changes since the investigation.
But the core business model hasn't changed: buy low, flip high. The "70% rule" is still the foundation. Franchisees still need to make a profit, which means you're always leaving money on the table.
If you're in a genuine crisis — foreclosure, inherited property you can't maintain, need cash immediately — a cash buyer might make sense. But you should know what you're giving up.
And you should always:
1. Get multiple offers. Never accept the first number.
2. Know your home's actual value. Get a CMA from a real estate agent — it's usually free.
3. Understand all your options. Listing, partnership deals, iBuyers, other cash buyers. Compare them side by side.
4. Read the contract carefully. Watch for "weasel clauses" that let the buyer back out or reduce their offer later.
5. Take your time. If someone's pressuring you to sign today, that's a red flag.
Selling your home is one of the biggest financial decisions of your life. Don't let a billboard with a cartoon caveman talk you into leaving $100,000+ on the table.
Want to See All Your Options?
We show you every path — cash, partnership, listing — with real numbers. And if another path nets you more, we tell you.
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