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The Ugly Truth Behind “We Buy Ugly Houses”

propublica.org

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Re: The Ugly Truth Behind “We Buy Ugly Houses”

#71

Post by pessimizer »

strix_varius wrote: post #57
_8j50 wrote: post #35

The author would prefer to verbally support "vulnerable people" instead of cash for their homes. I wonder what he thinks of foreclosures.

I hate to respond to arguments made in bad faith, but this is so ignorant that I simply have to. If you read the article, and the excellent primary reporting it links to, you'll see that these companies are swindling people for significantly less than they would get from the open market. These people could hire a realtor and retain 95% of the value of their home. However, scams like "We buy ugly houses" blanket areas…

There's a libertarian idealization of predatory behavior. Apparently, when we don't restrain predators they get better and better, and more and more people become predators, and that's how we build civilization. Also those who don't become predators are getting what they deserve.

Re: The Ugly Truth Behind “We Buy Ugly Houses”

#72

Post by carryongabby »

houseinthesky wrote: post #64
labster wrote: post #44

Earlier quoted context omitted.

[flagged]

[flagged]

GP stated what is, broadly-speaking, a fact - an artifact of policies that were integral to the development of the modern American housing stock (and how families are able to access it) as we know it. It succinctly conveys the American side in a discussion comparing the relative state of housing in America and Australia. It's on-topic and, while blunt, only "political or ideological" in the sense that some people will always see the statement of uncomfortable truths as "political or ideological." Please don't wield the guidelines like a club, it's done so in bad faith.

Re: The Ugly Truth Behind “We Buy Ugly Houses”

#73

Post by switchbak »

chasil wrote: post #51

I bought a local house in 2004 that suffered a failed furnace in deep winter (with great damage) for $17k. I put another $10k into it for repairs, and rented it. I started getting postcards around 2012: "I/we want to buy your house." I have a pile of them. None of them offered more than $20k. I had pandemic tenant problems; they didn't pay during the last six months, and the damage was substantial. I repaired the dam…

60k? Shoot, that wouldn't buy an outhouse out here in BC.

Re: The Ugly Truth Behind “We Buy Ugly Houses”

#74

Post by Nursie »

Andaith wrote: post #53
andrewstuart wrote: post #41

>> Home ownership is the American dream: In Australia, for many people the (new) Australian dream is: "One day I hope to have the income to be able to afford to pass the grueling real estate agent's suitability test to rent a house and move out of the tent/car."

I don't even know how we got here. Population growth has been below average for the last 3 years(no immigration). Housing/Apartment construction didn't slow down. I just don't understand it. Mortgages are insane. If you're buying a rental property with a mortgage, you can't afford to not rent it out. But home costs are up, rental costs are up, and properties are vacant. Do we really have so many people able to afford…

> properties are vacant

I'm not sure about where you are, but in Perth properties aren't vacant. AFAICT availability of rental properties is at a historic low, and so is the availability of properties for sale.

So agents can pull tricks like giving a nod that overbidding is going to be required, and you'd better make that rental profile sparkle if you want a place, and be prepared to put up with rent rises at the first opportunity, because there are 30 other people looking at this house today so if you're not willing to do what it takes, buh-bye.

On the other hand ... to this Brit, mortgages are more easily available for very large sums and you get much more house for your money than you would in the UK. But maybe that's a west coast thing.

Re: The Ugly Truth Behind “We Buy Ugly Houses”

#75

Post by bhouston »

They are a discount buyer, so it is generally a bad deal to use them and you basically shouldn't unless you have no other option. It is similar to getting a pay day loan, or selling stuff to pawn shop or keeping a balance on your VISA. You are going to get a bad deal.

I don't really know what to do about it. How can you ensure people are educated enough to know that a discount buyer is a buyer who will under pay for your house? I guess you legislate away discount buyers completely?

In Canada, they have regulated severely the amount of interest pay day loan companies can charge. This has led to a shrinkage in the number of pay day loan companies. So I guess some similar type of consumer protection laws could be enacted in this space.

Re: The Ugly Truth Behind “We Buy Ugly Houses”

#76

Post by nekitamo »

bhouston wrote: post #75

They are a discount buyer, so it is generally a bad deal to use them and you basically shouldn't unless you have no other option. It is similar to getting a pay day loan, or selling stuff to pawn shop or keeping a balance on your VISA. You are going to get a bad deal. I don't really know what to do about it. How can you ensure people are educated enough to know that a discount buyer is a buyer who will under pay for…

Legislating away discount buyers would be like legislating away payday lenders. The only thing accomplished would be to leave a hole in the market which will be filled by shady loan sharks.

Re: The Ugly Truth Behind “We Buy Ugly Houses”

#77

Post by Nursie »

When I was leaving the UK a couple of years back, I was tempted by some of the marketing blurb from some similar organisations there.

We had a house to sell, and were hoping to get it wrapped up before leaving, so "we buy all houses, we can close the deal in a few weeks, great prices offered!" sounded interesting.

But then you look up people's experiences and the shady practices start to show. They give slightly low-ball offers, but nothing outrageous, 5-10% under market to hook you in. Most people who use them have some sort of extra motivation to sell and these arseholes know it, so at the last minute* they drop their offer significantly, in the region of 20-30%, and try to really screw you.

So we stayed well clear!

(*and there are a lot of last minutes in UK house sales, in fact several last months sometimes... our eventual sales process took about 4 months from acceptance to completion, and either party can drop out with no penalty up to roughly the last two weeks. It's a terrible system)

(The above does not apply to Scotland, who have sorted this out long ago!)

Re: The Ugly Truth Behind “We Buy Ugly Houses”

#78

Post by [deleted] »

nekitamo wrote: post #76
bhouston wrote: post #75

They are a discount buyer, so it is generally a bad deal to use them and you basically shouldn't unless you have no other option. It is similar to getting a pay day loan, or selling stuff to pawn shop or keeping a balance on your VISA. You are going to get a bad deal. I don't really know what to do about it. How can you ensure people are educated enough to know that a discount buyer is a buyer who will under pay for…

Legislating away discount buyers would be like legislating away payday lenders. The only thing accomplished would be to leave a hole in the market which will be filled by shady loan sharks.

[deleted]

Re: The Ugly Truth Behind “We Buy Ugly Houses”

#80

Post by refurb »

nekitamo wrote: post #76
bhouston wrote: post #75

They are a discount buyer, so it is generally a bad deal to use them and you basically shouldn't unless you have no other option. It is similar to getting a pay day loan, or selling stuff to pawn shop or keeping a balance on your VISA. You are going to get a bad deal. I don't really know what to do about it. How can you ensure people are educated enough to know that a discount buyer is a buyer who will under pay for…

Legislating away discount buyers would be like legislating away payday lenders. The only thing accomplished would be to leave a hole in the market which will be filled by shady loan sharks.

Not sure why you’re downvoted because it’s true.

People desperate enough to use payday lenders have no other options. And the high interest rates reflect the risk.

Take that option away and the need doesn’t magically disappear, they just go to black market lenders where there really is no backstop at all.

Far better to regulate.

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