Selling a house is a major life event, and many homeowners in Pennsylvania turn to public auctions to quickly and efficiently sell their property. However, while public auctions may seem like a straightforward and convenient option, they can come with a variety of challenges and pitfalls that sellers should be aware of before entering the process. From confusing bidding rules to unexpected fees, there are several potential roadblocks that can make selling a house at a public auction in Pennsylvania more complicated than it first appears. In this article, we will explore some of the common problems that homeowners face when selling their houses at public auctions in Pennsylvania and offer tips for navigating these challenges successfully.
The Challenge of Home Auction Fees
When hiring an auction company, it is essential that you understand all the added fees which are typically included when they are selling your home. The fees charged by home auction companies in Pennsylvania vary depending on the company and the services they offer. It is important to be cautious and watch for hidden fees that may be added to the cost of the auction. Some auction companies charge additional fees for services such as advertising or conducting pre-auction inspections. The average commission charged by auction companies in Pennsylvania for selling a home during the last few years has been around 5-10% of the final sale price. However, it is important to note that commissions can vary and may be negotiable. It is essential to carefully review the terms and conditions of any auction agreement to understand all fees and commissions that will be charged.
The Challenge of Lower Than Expected Home Value at Auction
Additionally, it’s important to recognize that there are no guarantees when it comes to selling a home, and the value of a property can be influenced by a variety of factors such as location, condition, and current market trends. What a seller may perceive as the value of their home based on their own research on sites like Zillow or Realtor.com, or what the neighbor sold his place for, may not align with the actual market value, which is why it’s crucial to work with professionals who have the expertise and experience to provide an accurate assessment.
By nature of what an auction company does there is a competitive bidding process involved with potential buyers all hoping to get a great deal on the property. Typically, these auctions are attended by potential buyers and investors who know property values in your area better than you do. You should not expect your property to get “bid up” to a high value. It is important to talk to your auction company about minimum bids to insure you are not obligated to sell if the minimum bid on auction day is too low for your rock bottom desired price. Be aware that if the bid does not reach the minimum bid you set, you likely will still owe fees to the auction company. Be sure you understand these stipulations from your auction company.
The Challenge of Pennsylvania Disclosure Laws For Auctions
One of the most significant issues with selling your home at auction in Pennsylvania is the requirement for a seller’s property disclosure statement, which must be provided to potential bidders before the auction. This statement must detail any known defects or problems with the property, and failing to disclose this information can result in legal trouble. Your auction company has an obligation to help guide you through the disclosure process. Some even offer a professional home inspection for an additional fee. If they do not offer an inspection, you would be a wise seller to purchase one from a certified home inspector. The $500-$1000 fee can save you legal headaches in the future if you do not provide the needed disclosures about defects in the home. Here are 5 things sellers also need to know about real estate disclosures in Pennsylvania.
The Challenge of Foreclosure Situations and Public Auctions in Pennsylvania
Another issue somewhat unique to Pennsylvania is the state’s strict foreclosure laws. If your home is being sold through an auction due to foreclosure, you must follow Pennsylvania’s foreclosure process, which can be complicated and time-consuming. Additionally, if your property is subject to any liens or judgments, they must be paid off before the sale, which can further delay the auction process.
An Opportunity to Investigate a Professional Home Buying Company in Pennsylvania
Before you decide on auctioning your home, we advise you to check out the option of a professional home buying company. If your home is older, in need of repairs, or major cosmetic work, you can potentially save yourself a lot of time and expense by calling 717 Home Buyers for a fair cash offer.
In addition, you do not have to worry about disclosures and inspections. Selling to a professional home buyer is also easier if your home is in foreclosure. You can read more about how 717 Home Buyers can help you in a Pennsylvania foreclosure situation.
We encourage you to do a little extra investigation before selling your home at a public auction. You do not have to make expensive, time consuming updates and repairs while you continue to pay for home insurance and property taxes. Even better, there are no closing costs, no additional fees, no long waiting periods and very little stress as you might expect on an auction day. As a result, you won’t have to worry about auction fees, inspections, disclosure laws or any of the other issues mentioned above. Additionally, because of how easy and transparent our system is, you know precisely what to anticipate at every stage. For professionalism, fairness, and just being kind, we have a 5-star reputation. Call us right away Pennsylvania at 717-639-2164 or fill out the short form here on our website.