Selling a house at auction is a trend that is gaining popularity. A quick transaction, the absence of real estate agency fees, and often a profit for the seller are just a few benefits of selling at auction. However, there are disadvantages to selling a house in Philadelphia, Pennsylvania, at auction as well.
I’ll discuss some of the dos and don’ts of selling your house at auction in Philadelphia, Pennsylvania, as well as provide helpful input on the question, “Is Selling Your House at Auction in Philadelphia, PA a good idea?”
If You Want To Sell Your Philadelphia House At Auction, We Offer The Following Advice.
If you’re thinking about selling your Philadelphia house at auction, keep in mind that there will be many hours to days or weeks of preparations to be made before the actual sale starts. To have your house auctioned in Philadelphia, you must first find an auctioneer. Nowadays, there are many auctioneering firms available, so do your research before selecting one to sell your house at auction. You might start by asking a friend or looking up auctioneers in our region of Pennsylvania on the website of the National Auctioneers Association.
Go to a few auctions and look for those with a lot of experience to get a sense of how they handle things. Here is where you can find a list of current scheduled auctions in Philadelphia, Attending several of these may give you further insight into what you like and what you don’t like about various auction companies. Make sure to connect with anyone you like and also ask others for input at these sales.
As some company’s rates might occasionally be extremely exorbitant, be careful to ask them what they charge for their services. The amount of profit you would make would be significantly reduced—in certain circumstances substantially less—because they might take a high percentage of the cost of the house. You’ll want to make sure to ask about ALL fees as there could also be hidden fees that you don’t hear about initially. Check out more on auctioneer fees and commissions here.
If you don’t want to hire an auctioneer, you can even handle it yourself. A skilled auctioneer can considerably help to raise the price of a home with their skill. However, provided you are clear with bidders about the auction’s terms, such as the starting bid price and whether or not they must bring cash and a deposit to the auction, you are permitted to conduct the auction yourself. Choose between holding an outright or a reserve auction.
Absolute or Reserve Auction
Choose between an absolute or a reserve auction after you’ve chosen the Philadelphia house auction company that’s best for you. Your house can be sold at an absolute auction for any price; there is no minimum price required. As a result, you will receive whatever the highest bidder has to give. In reserve auctions, the minimum offer must be met in order for the item to be sold. Even though it seems like an obvious winner between the two, reserve auctions aren’t always better. The house might never be sold, and you might be forced to live in a place you don’t desire if bidders are unwilling to exceed the maximum. You can learn more about a reserve auction here.
Additionally, “no reserve” (also known as absolute) auctions tend to draw more prospective bidders looking for a great offer. It can mean the difference between selling the house that day or not at all if one of them gets caught up in the bidding war. Before making a choice, thoroughly weigh your options and try to decide what you value more. An absolute auction is the best option if you want to sell your house in Philadelphia as quickly as possible. In the case that you are concerned about too low of a selling price, a reserve auction might better suit your goals.
Important Reminders If Selling Your Philadelphia Home At Auction
Any problems in the house should be mentioned in your auction description. Making a list of all the problems with your house is one of the most important tasks in selling it at auction in Philadelphia. The bidders have the right to sue you for any defects you omitted to disclose in your house before the auction if you do not disclose them.
Don’t enter an auction expecting a bidding war to start and walk away with a great profit. Set a reasonable asking price that you anticipate receiving, and don’t be offended if it sells for less. The other bidders might not have the same emotional connection to the home as you do.
An auction might not net as much money as a standard real estate sale, but it is usually rapid and can spare you the pain and aggravation of the more conventional approach.
Another Option For Your Philadelphia Home Besides An Auction
Why are you even considering selling your Philadelphia house at auction? If you are in a hurry to sell you property, you can also consider professional home buyers. There are many advantages to “we buy houses” companies compared to selling your home at auction. Overall, you may find that a professional home buyer solution accomplishes your goals even better.
If there is pressure to sell your house quickly due to illness, pending foreclosure, or other issue, a professional home buyer is even more appealing. They do not require updates, repairs, or cleaning. Home buyers will by your property as-is and do so quickly. Often in as little as one week.
717 Home Buyers buys homes in Philadelphia. We want to acquire your house rather than put it on the market. In Philadelphia, we buy houses in any condition. In addition to other regions of Pennsylvania like Reading, York, Harrisburg, and more, we buy houses in any portion of Philadelphia. We purchase homes that are attractive, unsightly, in good condition, needing numerous repairs, having a lot of equity, and even having little to no equity. You won’t need to make any improvements to the house because we’ll pay a fair price, close swiftly (in as little as 7 days) and pay cash. You can read more about how we operate here. We have many great Google reviews you can check out here. We never charge commissions or closing costs. Before you decide to sell your house at auction, if you’d like to find out how much we can pay for it, please get in touch with us by calling 717-639-2164. We will give you a free no-obligation offer. You have nothing to lose by checking into this option.
About Josh Eberly
A native of Lancaster County, Josh’s roots run deep in his commitment to this community. He especially enjoys helping people find solutions through real estate. Josh is a seasoned investor with experience in many sides of buying and investing in real estate. Josh enjoys reading, listening to podcasts, digital marketing, and hanging out with his family. Feel free to connect with him here.