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Selling Your Home in Pennsylvania: Understanding the Pros and Cons of Cash Sales vs Auctions

When it comes to selling a home in Pennsylvania, there are several options available to homeowners. Two popular methods are auctions and selling for cash to a professional home buyer. Of course, each of these has their advantages and disadvantages, and it’s important to weigh them carefully before making a decision. You can read about four options for selling your house on Zillow.

Pros and Cons of Home Auctions in Pennsylvania

Auctions are a common way to sell a home, particularly if the property has unique features that make it stand out from others in the area. Auctions typically involve a large group of potential buyers competing to bid on the property, and the highest bidder wins. For homeowners who are looking for a quick sale, an auction can be an attractive option. There is a set date for the auction, and the sale is final once the winning bid is accepted.

Advantage: High Selling Price For New or Restored Older Homes

One of the biggest advantages of selling a home through an auction is the potential for a high sale price. With a large number of interested buyers competing for the property, there is a chance that the final sale price will be much higher than what the homeowner could have received through a traditional sale. Additionally, the auction process can create a sense of urgency among buyers, which may lead to a quicker sale. A high selling price potential is especially true for houses that are in great shape, fairly new, or perhaps older, but have been renovated and restored.

Disadvantage: Are Fees and Commissions

Auction vs. Cash Sale in PA

However, there are also downsides to selling a home through an auction. For one, there are significant costs associated with organizing an auction, including marketing expenses and fees for the auction company. Additionally, there is no guarantee that the property will sell at all, let alone at a desirable price. If the bidding does not reach the homeowner’s desired price, they may be forced to either accept a lower offer or take the property off the market altogether.

Disadvantage: Be Real Estate Disclosure Laws

Probably most important on the scale of pros and cons about an auction sale is in regard to older homes and particularly those that are in need of major repairs or renovations.  Due to the legal ramifications of disclosure laws in Pennsylvania, needed repairs and defects must be reported to potential buyers. This typically necessitates paying for a home inspection (sometimes included in the auction company’s fees) and potentially making needed repairs to storm damage, cracked foundation repairs, or other major issues. Although repairs are not required, disclosure is required and thus the selling price is often very negatively impacted.

Pros and Cons of Selling Your Home To A Cash Professional Home Buyer in Pennsylvania

Selling a home to a professional home buyer for cash is another option for homeowners who are looking for a quick and easy sale. Professional home buyers are typically real estate investors who are interested in purchasing properties quickly and without the hassle of traditional home sales. They typically make cash offers that are below market value, but they also take care of all the costs associated with the sale, including inspections, repairs, and closing costs.

Advantage: Speed and Value

One of the main advantages of selling a home for cash to a professional home buyer is the speed of the sale. Homeowners can typically receive a cash offer within days of contacting the buyer, and the sale can be completed within a matter of weeks. This can be particularly attractive for homeowners who are facing financial difficulties like foreclosure, have an inherited home, have a serious illness, or need to move quickly for personal or professional reasons.

Advantage: Simplicity of the Process

Another advantage of selling a home to a professional home buyer is the simplicity of the process. Homeowners do not need to worry about staging their home or making repairs before the sale. Additionally, there are no marketing expenses or fees associated with the sale. Homeowners can simply accept the cash offer and move on with their lives. Even though the cash offer is below market price, once the costs and fees of other selling methods like a public auction are factored in, the selling price begins to look more attractive. Sellers can save on commissions, fees, closing costs, inspection fees, repair costs, and time related fees like insurance, taxes, and utilities they must pay for while waiting for inspections, repairs, or closings. You can read about getting a fair price from a cash buyer here.

Disadvantage: Potential for Scammers

However, there are also downsides to selling a home for cash to a professional home buyer. For one, there are some unscrupulous home buyers who may try to take advantage of homeowners who are in a difficult financial situation. It’s important to research any potential buyers carefully and work with a reputable home buying company. You can learn more about how to find a truly professional home buyer with a great reputation here.

An Example of A Cash Home Seller Happy With The Opportunity

An example of a homeowner who was happy with a cash sale to a professional home buyer is Jane, a widow who needed to sell her home quickly to move closer to her children. Jane’s husband had passed away several years earlier, and she was struggling to maintain the large family home on her own. She didn’t have the money for repairs or renovations, and she didn’t want to deal with the stress and uncertainty of an auction.

Jane contacted a professional home buying company, and within a few days, she received a cash offer for her home. The offer was lower than what she might have received through an auction sale, but it was enough to cover her outstanding mortgage and give her a fresh start. If this scenario sounds like your situation, we encourage you to contact us at 717 Home Buyers and let us make you a cash offer.

Contact 717 Professional Home Buyers In Pennsylvania For a Fair Cash Offer Today

Remember, at 717 Home Buyers, there are no fees, no closing costs, no commissions. We can usually provide an offer on your property within 24 hours and if accepted, we can close within about a week. Call today and chat with one of our friendly professionals. You can read some of our reviews at this link to learn more about our reputation for professionalism and fairness.

We hope to hear from you soon. Call us today at 717-639-2164.

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.

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