As a homeowner in Pittsburgh, you have numerous ways to sell your home. You can choose the popular strategy of hiring a real estate agent when you have your home listed on the MLS. This method requires you to stage it, host open houses, and pay a hefty commission to your agent.
You could also avoid realtors and their fees by selling your home directly to trusted cash home buyers in Pittsburgh. The benefits of the latter strategy are that you can enjoy a quick and hassle-free sale and complete the deal within weeks!
While these two home-selling options are popular, another strategy is becoming increasingly common. You can also consider selling your home through an auction. Homes in high demand are often sold via auctions where multiple buyers compete and try to outbid each other.
In this post, we take a closer look at selling homes via auctions and discuss the pros and cons of this strategy.
Pros of Selling Your Pittsburgh Home by Auction
- In an auction, you start with the reserve or starting price you set. You can hire a real estate agent to do a comparative market analysis and help you determine the reserve price by comparing your home with recently sold properties in your neighborhood.
- The reserve price protects you because it is the minimum price for which the property will be sold.
- You’re in control of the marketing for the auction. You get to decide how to advertise the upcoming auction to the public and the marketing budget to allocate for it.
- In the worst case, if the property doesn’t sell at the auction, you can connect directly with buyers who showed interest and continue the negotiations.
- Sometimes, you might even get an early sale where a keen buyer offers you a sum. The buyer suspects there might be too much competition at the auction, so they’re looking to snap up the property before it goes into auction.
- Homes with unique features are most suited for auctions, as they attract more competition among bidders.
- If there are multiple interested buyers, they will likely engage in fierce competition outbidding each other and helping you get a bigger profit.
Cons of Selling Your Pittsburgh Home by Auction
- There’s no guarantee that your home will sell during the auction. If there are no interested buyers, it sends a false message that your home isn’t worth the price.
- Auctions can discourage potential buyers who are turned off by the competitive nature of the process.
- The marketing budget for an auction can be expensive.
- Auctions don’t guarantee maximum profits. Generally, the top bid is only marginally higher than the rest.
When Does It Make Sense to Sell Your Pittsburgh Home Through an Auction?
Considering the pros and cons, selling your home via an auction doesn’t always make sense. It can be time-consuming and expensive, and the biggest drawback is that there’s no guarantee that you’ll make a sale. Real estate investors pay a fair price on your home and complete the deal at your convenience. If you’re looking to sell a house fast in Pittsburgh, consider the easier alternative by selling it to real estate investors like 412 Houses for cash.